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LVMH Moët Hennessy • Louis Vuitton S.A.
Type Société Anonyme (Euronext: MC)
Founded 1987
Headquarters Paris, France
Key people Bernard Arnault (Chairman of the board and CEO)
Industry Luxury goods
Products Clothing and accessories, wines and spirits, cosmetics, jewellery and watches
Services Department stores
Revenue 17.05 billion (2009)[1]
Operating income €3.161 billion (2009)[1]
Profit €1.755 billion (2009)[1]
Total assets €32.11 billion (2009)[1]
Total equity €14.79 billion (2009)[1]
Employees 77,300 (2009)[1]
Parent Christian Dior
Website www.lvmh.com

LVMH Moët Hennessy • Louis Vuitton S.A. (Euronext: MC), usually shortened to LVMH, is a French holding company and one of the world's largest luxury goods conglomerate. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. These daughter companies are, to a large extent, run autonomously. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group.[2]

Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.4% of its shares, and 58.2% of its voting rights.[3] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH.[4] His successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont have also created extended portfolios of luxury brands. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.[5]

Contents

Financial data

Financial Data (in million euros) 2008[6] 2007[6] 2006[6]
Sales 17,193 16,481 15,306
Net Profit 2,318 2,331 2,160
Total Equity 13,887 12,528 11,594

Corporate structure

LVMH is based in Paris, France.[7] The company is listed on the Euronext Paris exchange,[8] and is a constituent of the CAC 40 index. As of 2008, the group revenues of €17.2 billion[9] with a net income of €2.318 billion. The group currently employs 77,000 people.[10] 30% of LVMH's staff work in France. LVMH operates over 2,300 stores worldwide.[11] Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.

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Shareholders

At the end of 2008, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group's control amounted to 47.42% of LVMH's stock (with 42.42% held through Christian Dior S.A. and 5.00% held directly) and 63.40% of its voting rights (58.02% by Dior and 5.38% directly).[3] A further 3.4% of shares were declared as treasury stock, with the remainder being free float.[3]

Well known subsidiaries

A partial list including some of LVMH's most well known brands:[11]

Company Sector
Moët et Chandon Wines and Spirits
Dom Pérignon Wines and Spirits
Krug Wines and Spirits
Château d'Yquem Wines and Spirits
Hennessy Wines and Spirits
Glenmorangie Wines and Spirits
Belvedere Vodka Wines and Spirits
Chopin vodka Wines and Spirits
Domaine Chandon California Wines and Spirits
Fendi Fashion and Leather Goods
Donna Karan Fashion and Leather Goods
Givenchy Fashion and Leather Goods
Kenzo Fashion and Leather Goods
Berluti Fashion and Leather Goods
Louis Vuitton Fashion and Leather Goods
Marc Jacobs Fashion and Leather Goods
Loewe Fashion and Leather Goods
Celine Fashion and Leather Goods
Thomas Pink Fashion and Leather Goods
Parfums Christian Dior Perfumes and Cosmetics
Guerlain Perfumes and Cosmetics
TAG Heuer Watches and Jewelry
Zenith Watches and Jewelry
Hublot Watches and Jewelry
Chaumet Watches and Jewelry
Sephora Selective Retailing
DFS Selective Retailing
Le Bon Marche Selective Retailing

References

External links


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