Another broken record on the stock exchange and a new “brand”, if we have to put it into words. Last Wednesday, on February 10th, the luxury French group LVMH became the stock with the largest market cap on the stock exchange where it’s listed, reaching (as we’ll see), astronomical value. At the same time, Louis Vuitton purchased the rights to use the name of the city of Vendôme. LVMH appears to go non-stop.
LVMH’s market cap reached 271 billion euro, surpassing Nestlè (265 billion). Reporting on the news was agency AFP, which points out that between February and March of 2020, the group’s stock price had lost ground due to the early financial impacts of the pandemic. Just after that period though, they started climbing again and, since October 31st, 2020, the increment brought the share price to +24% or 510.90 euro. The positive trend continued in January 2021, with a performance of +5%.
A new “brand”
Meanwhile, the city of Vendôme sold its name to Louis Vuitton. The luxury brand bought the rights to use the name, from the city, for a project that should be revealed in the upcoming months. Vendôme is a town located in the Loire’s mid-valley section, where Louis Vuitton has a laboratory ready to open, as well as another location that is being constructed. The mayor of the city, Laurent Brillard, spread the news on its Facebook profile. “Only two votes against out of 33 total councilors. This contract allows the company to use the name, and only the name Vendôme for any new creation of collection of products tied to luxury jewelry”. As reported by bfmtv.com, Luois Vuitton invested 10,000 euro for the operation, along with the promise of creating new jobs for the city.
In image from Shutterstock, the boutique Vuitton in Place Vendôme, in Paris (year 2017)