Paul Theron, MD at Vestact Asset Management, and South African fashion designer David Tlale speak to The Money Show’s Bruce Whitfield about French multinational LVMH.
- LVMH Moët Hennessy Louis Vuitton, commonly known as LVMH, is a French multinational specialising in luxury goods
- The company was formed in 1987 through the merger of fashion house Louis Vuitton with Moët Hennessy
- LVMH is headquartered in Paris, France
- LVMH’s market capitalisation recently reached $486 billion, briefly making it the world’s 10th-biggest company
A 5% rise in LVMH’s share price in mid-April saw the company’s market capitalisation reach $486 billion, briefly ranking it as the world’s 10th-biggest company.
The luxury-brand powerhouse also becomes the first European company to make that list, which is usually littered with American businesses.
LVMH is home to 75 distinguished brands, rooted in six different sectors, which include Tiffany & Co., Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Loewe, Loro Piana, Kenzo, Celine, Sephora, Princess Yachts, TAG Heuer, and Bulgari.
Increased sales of Louis Vuitton handbags and Moet Chandon champagne is behind the rise in LVMH’s share price, which has also grown the wealth of its founder, Bernard Arnault.
Arnault is the world’s richest person, with a $198 billion fortune, according to the Bloomberg Billionaires Index.
The strongest part of LVMH is the champagne, which is a real global winner… and the handbags, those Louis Vuitton handbags are absolutely in a league of their own, that cost an absolute bomb. Paul Theron, MD – Vestact Asset Management
It’s doing well in China, and India and will do well in decades to come in Africa. Paul Theron, MD – Vestact Asset Management
I always say to people, do you buy it because it’s expensive, or do you buy it because you need it? David Tlale, fashion designer
At the end of it all, it’s about people wanting to belong to a particular lifestyle. David Tlale, fashion designer
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