When times are tough, people will still drink champagne and buy expensive handbags. Or so investors may conclude, looking at LVMH’s performance in the past year. Christmas sales were strong, and the group’s revenues have rebounded from their pandemic-related collapse in the first half of 2020. LVMH shares have risen more than 24 percent in the past three months, elevating the French luxury goods group to the rank of Europe’s second-largest market capitalization, behind Nestlé. Investor confidence in the owner of megabrands Dior, Louis Vuitton and Hennessy cognac has grown due to a number of factors: the expected recovery from the roll-out of vaccines against Covid-19; the anticipated boost to earnings and revenues from the acquisition of U.S. jeweler Tiffany & Co.; and Washington’s decision on Jan. 7 to scrap its threat to slap tariffs on French luxury goods, at least for now.