Luxury Stocks Are Reshaping France's CAC 40
A year ago LVMH, the owner of luxury brand Louis Vuitton, became France’s biggest company by market value, a mantle energy giant Total SA and drugmaker Sanofi SA had shared for almost a decade. A more than 200 percent rally since the start of 2016, and more than 70 percent over the past 12 months, has now put the owner of “it bag” brands within shouting distance of the top five stocks in the CAC 40 Index. The spectacular rise in both companies’ fortunes, fueled by booming demand from Asia and millennials for designer handbags, flashy shoes and clothes as expensive as jewels, is reshaping the French benchmark, long the realm of energy, infrastructure, financial and telecommunications stocks. France’s luxury companies “are well managed and have been more successful than others in attracting new clients globally via e-commerce, without cannibalizing their traditional business,” Christian Guyot, analyst at Invest Securities in Paris, said in an interview.