Paris: Due to a surge in its share price and a strengthening euro, French luxury goods giant LVMH became the first European business to surpass $500 billion in market value on Monday.

In its first-quarter results earlier this month, the luxury group, which is owned by billionaire Bernard Arnault, reported a 17% increase in revenue, exceeding analyst expectations.

Following the results, shares of brands like Givenchy, Christian Dior, Bulgari, and Sephora as well as the parent company of Louis Vuitton, Mot & Chandon, and Hennessy all saw significant gains.

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On Monday morning, shares of the Paris-listed business increased 0.3% to €903.70 ($996.19), giving it a €454 billion ($500.5 billion) market value.

The second consecutive year of record performance, LVMH reported revenue of €79.2 billion ($87 billion) for 2022 and profit from continuing operations of €21.1 billion ($23 billion).

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According to the most recent statistics, even though the EU's spiralling inflation and rising interest rates threaten to plunge the world into a recession, demand for luxury goods like Christian Dior dresses and Louis Vuitton handbags has remained strong.

Strong results have also been aided by China's reopening following the removal of its zero-Covid policy, as the Asian nation's booming luxury goods sales are fueling industry expansion generally.

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The increasing value of LVMH has increased the wealth of Bernard Arnault, the richest person in the world, to a record level. According to the Bloomberg Billionaires Index, he is worth close to $212 billion.