L’Oréal becomes most valuable company on Paris Stock Exchange

L’Oréal has become the most valuable company on the Paris Stock Exchange, overtaking the luxury conglomerate LVMH. With a market capitalization of approximately 203 billion euros, the cosmetics giant has surpassed LVMH, which saw its valuation drop to roughly 201 billion euros.

This shift marks the first time since 2017 that a non-luxury goods company has held the top position on the French market. The divergence in performance is notable: L’Oréal’s shares have risen about 4% to 5% this year, while LVMH’s shares have declined by approximately 35% to 37%.

Analysts attribute this trend to the ‘lipstick effect,’ where consumers opt for more affordable premium products like cosmetics during economic uncertainty rather than high-end luxury goods. Reports from Bain & Company suggest the global luxury market has faced significant headwinds, losing millions of consumers due to price increases and shifting economic conditions in regions like China.