L’Oréal becomes France's most valuable publicly traded company And dethrones the LVMH group in the process

By becoming the most valuable French company on the stock market, L’Oréal has taken the top spot from global luxury giant LVMH. This is a first since 2017, as nearly ten years have passed since a non-luxury company last topped the Paris Stock Exchange at the close of a trading day.

A battle of numbers at the top

While exact valuations fluctuate slightly depending on the source, the symbolic weight remains strong and the momentum undeniable. BoF and LSEG data estimate L’Oréal’s market capitalization at around €203 billion compared to €201 billion for LVMH, whereas Le Monde reports a razor-thin gap of €203.4 billion versus €203.3 billion. This passing of the torch reflects an underlying trend observed since early 2026, during which LVMH’s stock price fell by 36% while L’Oréal gained 4%. This movement confirms a vulnerability first hinted at in April 2025, when Hermès briefly stole top spot in Paris from Bernard Arnault’s group. As a direct result of this market contraction, which also affects Kering and the broader sector, LVMH has lost its position among Europe’s top ten largest companies by market capitalization.

LVMH confronts a slowdown in its business model

The group led by Bernard Arnault, who recently lost his title as the world's richest man to Amancio Ortega, is navigating a period of strategic adjustments and media scrutiny. To absorb financial strain, the luxury giant divested from fashion house Patou as well as Off-White earlier this year. At the same time, the group faced intense online backlash and allegations of cultural appropriation after filing a lawsuit against a Chinese tea brand over an intellectual property dispute regarding its floral motif. To preserve its desirability and consolidate its standing, LVMH is leaning heavily on its partnership with Pharrell Williams, creative director of Louis Vuitton menswear.

The "Lipstick Effect" and market redistribution

This paradigm shift is largely driven by the economic phenomenon known as the "lipstick effect." Against a backdrop of global economic uncertainty, consumers are turning away from high-ticket items like luxury leather goods in favor of more affordable beauty and makeup products. According to consultancy firm Bain, roughly 60 million consumers have walked away from luxury goods due to repeated price increases that ultimately placed high-end fashion out of reach for much of the consumer base.

The chinese market slowdown

Several structural factors explain why the luxury sector is losing ground to more accessible brands. China, historically the growth engine for the industry accounting for a third of global sales, has experienced a sharp slowdown in consumer spending since the Covid crisis. Between 2022 and 2025, revenues for iconic houses like Dior and Chanel were nearly halved, leaving only a select few such as Hermès to weather the storm in the Chinese market. Finally, the massive rise of the resale market now allows buyers to acquire luxury items at lower costs, placing further pressure on traditional players. In this uncertain climate, compounded by political instability in the Middle East, L’Oréal continues to stand out thanks to a more diversified and accessible positioning.