LVMH becomes first European firm to reach $500 billion market capitalization

Investing.com -- The market value of LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH) climbed to $500 billion at one point on Monday, making it the first European company to touch this level.

Shares in the Paris-based fashion giant rose compared to its Friday close. When factoring in a recent surge in strength in the euro against the dollar, the move temporarily pushed the company's total market cap to just above $500B.

Earlier this month, the world's biggest luxury group posted a sharp rise in first-quarter sales thanks to strong demand in its key Chinese market.

The Bernard Arnault-controlled company, which owns brands like Louis Vuitton and Dior as well as Hennessy cognac and U.S. jeweler Tiffany, reported a 17% jump in sales for the three months to end-March, more than double expectations.

LVMH pointed to a 14% uptick in sales in Asia, excluding Japan, compared with an 8% decline in the fourth quarter of last year, with the company looking to China for much of its growth this year.

China, which is a crucial market for the high-end products sold by LVMH, was hit by a wave of COVID-19 cases in the prior quarter following a sudden decision to lift pandemic-era health restrictions.

Sales in Europe also impressed, with growth of 24%, while business in the U.S. was more subdued, growing by 8% in the quarter.