The owner of LVMH, which includes Louis Vuitton, Dior, Givenchy, Bvlgari and other luxury brands, Bernard Arnault acquired shares in his conglomerate. The businessman bought securities worth 215 million euros. Bloomberg reports this.
Arnault decided to take this step because the conglomerate’s results at the end of July contributed to the fall in prices. Second-quarter results showed a 1% decline in the company’s organic revenue in the United States. This scared off investors. Thus, share prices fell by 5.2% in the following trading session. In August they fell another 7.8%.
As a result, the conglomerate was no longer the largest European company by market value. LVMH lost its lead to Danish drugmaker Novo Nordisk A/S, which was growing on sales of its anti-obesity drug Ozempic.
Previously, the details of the collaboration between LVMH and the Paris Olympic Games were known. The conglomerate will allocate 150 million euros to the organization of the competition. We talk in more detail here.
