LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH, is a French multinational conglomerate focused on luxury goods. It is listed on the Euronext Paris exchange (trading as MC) and is included in the CAC 40 and Euro Stoxx 50 indices.
LVHM was formed in 1987, as the fashion house Louis Vuitton merged with the upscale beverage company Moët Hennessy. It should be noted that LVMH today only holds approximately two-thirds of its drinks division Moët Hennessy; the remaining shares are owned by the British beverage company Diageo.
The main holding company of LVMH is the luxury goods group Christian Dior, which owns 40.9% of the shares and 59.01% of the voting rights. In 2017, Bernard Arnault, majority shareholder of Christian Dior, purchased all the remaining Christian Dior shares in a reported 13.1 billion USD buy-out.
LVMH owns roughly 60 different subsidiaries, with each subsidiary managing one or more luxury brands. Many of the brands owned by LVMH are tightly controlled to retain their image of luxury and exclusivity. Louis Vuitton products are for instance only sold in Louis Vuitton boutiques or through concessions in other luxury goods shops, such as Harrods in London.
In Deloitte’s “Global Powers of Luxury Goods” 2013 report, LVMH was ranked first luxury goods company.
Short facts about LVHM
|Name||LVMH Moët Hennessy Louis Vuitton SE|
|Traded as||Euronext: MC|
|Index inclusion||CAC 40
Euro Stoxx 50
|Examples of key products||Clothing
|Founded||Moët & Chandon 1743
Louis Vuitton 1854
|Headquartered||In the 8th arrondissement of Paris, France|
|Total assets||€ 68.550 billion (2017)|
|Total equity||€ 30.260 billion (2017)|
|Revenue||€ 42.636 billion (2017)|
|Operating income||€ 8.113 billion (2017)|
|Net income||€ 5.616 billion (2017)|
Financial data 2013 – 2017
Financial data (in million euros)
|Net profit (before minority interests)||3,947||6,105||4,001||4,363||5,616|
In January 2018, LVMH announced record sales of €42.6 billion in 2017, which was up 13% over 2016. This translated into a strong increase in net profit for 2017 compared to 2016.
As of the end of 2017, the only declared major shareholder in LVMH is Arnault Family Group, which is a holding company controlled by Bernard Arnault. At this point, the Arnault Family Group owned 46.84% of LVMH’s stock and 63.13% of the voting rights.
Examples of notable business deals since 2010
- In 2014, LVMH formed a joint-venture with the Italian fashion brand Marco De Vincenzo, taking a minority 45% stake in the firm.
- In 2013, it was revealed that LCapitalAsia would assist the mid-priced clothing brand QDA as they opened stores in Beijing.
- In 2011, LVMH invested 640 million USD in establishing their private equity LCapitalAsia.
- In 2011, LVMH acquired 50.4% of the shares in Bulgari SpA by buying them from the Bulgari family, paying with 3% of LVMH. This deal made the Bulgari family the second-largest family shareholder in LVMH, behind the Arnault family.
Examples of LVMH brands and subsidiaries
Cheval Blanc (hotels)