Key facts
- L'Oreal's market capitalization reached €203.17 billion ($234.54 billion) on Tuesday.
- LVMH's market capitalization was €202.05 billion ($233.23 billion) at the close.
- This is the first time since 2017 a non-luxury company has been France's most valuable.
- LVMH's stock has fallen 36% this year.
- The conflict in the Middle East has weighed on LVMH's business.
- Consumer sentiment in China has struggled to materialize into sales for LVMH.
L'Oreal surpassed Louis Vuitton owner LVMH on Tuesday to become France's most valuable listed company, a milestone not achieved by a non-luxury firm since 2017. The cosmetics giant's market capitalization reached €203.17 billion ($234.54 billion), edging out LVMH's €202.05 billion ($233.23 billion) according to LSEG data. The shift in market leadership comes as the luxury sector faces pressure from slowing sales and lacklustre earnings. LVMH's stock has seen a significant decline of 36% this year, reaching lows not seen since October 2020. Factors contributing to LVMH's struggles include the repercussions of the conflict in the Middle East and difficulties in translating improved consumer sentiment in China into tangible sales growth.