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PARIS — Cosmetics giant L’Oréal has overtaken luxury conglomerate LVMH to become France’s most valuable listed company, marking the first time since 2017 that a non-luxury company has held the top position on the Paris stock market.
L’Oréal’s market capitalisation reached approximately €203 billion ($234 billion), narrowly exceeding LVMH’s value of about €201 billion at the close of trading on Tuesday, according to LSEG data cited by Reuters.
The change reflects contrasting performances by the two companies amid challenging conditions for the global consumer and luxury-goods sectors. L’Oréal shares have gained about 5% so far in 2026, while LVMH shares have fallen sharply during the same period.
LVMH, whose portfolio includes Louis Vuitton and other major luxury brands, has faced weaker demand following years of slower sales and subdued earnings. The sector has also been affected by an economic slowdown in China and geopolitical tensions, factors that have weighed on spending on high-end fashion and other luxury products.
Analysts cited by Reuters have pointed to changing consumer behaviour as one factor supporting cosmetics demand. During periods of economic pressure, consumers may continue purchasing relatively affordable luxury products such as cosmetics while reducing spending on more expensive fashion and leather goods.
The shift also highlights the broader difficulties facing European luxury companies. LVMH, which had previously been Europe’s most valuable listed company during the post-pandemic luxury spending boom, has seen its market value decline significantly as the sector confronts weaker demand and changing consumer patterns.
LVMH’s decline has also affected its position among Europe’s largest listed companies, with the group falling behind several major European firms by market value. The development marks a notable change from the period when luxury companies dominated the region’s stock-market rankings.
For L’Oréal, the rise to the top of France’s stock market reflects the strength of its diversified beauty business and investor confidence in cosmetics demand. However, the relative market valuations remain subject to changes in share prices and broader economic conditions.
The reversal between the two French corporate giants underscores the changing dynamics of the global consumer market, as investors assess how different categories of discretionary spending are responding to economic uncertainty, inflation and shifting consumer priorities.
