LVMH
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| Type | Société Anonyme |
|---|---|
| Traded as | Euronext: MC |
| Industry | Conglomerate (Luxury goods) |
| Predecessor(s) | Moët Hennessy Louis Vuitton |
| Founded | 1987 |
| Headquarters | Paris, France |
| Area served | Worldwide |
| Key people | Bernard Arnault (Chairman & CEO) Antonio Belloni (Managing director) |
| Products | Clothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, watches, wines |
| Services | Department stores |
| Revenue |  €23.65 billion (2011)[1] |
| Operating income | €5.263 billion (2011)[1] |
| Profit | €3.065 billion (2011)[1] |
| Total assets | €47.06 billion (2011)[1] |
| Total equity | €23.51 billion (2011)[1] |
| Employees | 87,544 (2011)[1] |
| Parent | Christian Dior (via Financière Jean Goujon) |
| Subsidiaries | List of subsidiaries |
| Website | LVMH.com |
LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate, headquartered in Paris. The company was formed by the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer.[2][3][4] It controls around 60 subsidiaries that each manage a small number of prestigious brands. The subsidiaries are often managed independently. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.[5]
Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.36% of its shares, and 59.01% of its voting rights.[6] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH.[7] Arnault's successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus, the French conglomerate Kering (formerly named PPR) and the Swiss-based Richemont have also created extended portfolios of luxury brands.
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Financial data[edit]
| Financial Data (in million euros) | 2006[8] | 2007[8] | 2008[8] | 2009[8] | 2010[1] | 2011 | 2012 |
|---|---|---|---|---|---|---|---|
| Sales | 15,306 | 16,481 | 17,193 | 17,053 | 20,320 | 23,659 | 28,103 |
| Net profit | 2,160 | 2,331 | 2,318 | 1,973 | 3,032 | 3,065 | 3,424 |
| Total equity | 11,594 | 12,528 | 13,887 | 14,785 | 18,204 | 23,512 | 25,666 |
Corporate structure[edit]
LVMH is based in 30 avenue Hoche in the 8th arrondissement, Paris, France.[2] The company is listed on the Euronext Paris exchange,[9] and is a constituent of the CAC 40 index. As of 2010, the group had revenues of €20.3 billion with a net income of just over €3 billion.[1] The group currently employs more than 83,000 people.[1] 30% of LVMH's staff work in France. LVMH operates over 2,400 stores worldwide.[10] 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).
[edit]
At the end of 2010, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group's control amounted to 47.64% of LVMH's stock (with 42.36% held through Christian Dior S.A. and 5.28% held directly) and 63.66% of its voting rights (59.01% by Dior and 4.65% directly).[6] A further 2.43% of shares were declared as treasury stock, with the remainder being free float.[6] LVMH hold 66% of the drinks division, Moët Hennessy, with the remaining 34% held by Wong Yuchin J.P.[11]
Subsidiaries[edit]
A partial list including some of LVMH's most well known brands and subsidiaries:[10][12]
| Company | Sector |
|---|---|
| Moët et Chandon | Wines and Spirits |
| Dom Pérignon | Wines and Spirits |
| Krug | Wines and Spirits |
| Veuve Clicquot | Wines and Spirits |
| Mercier | Wines and Spirits |
| Château d'Yquem | Wines and Spirits |
| Hennessy | Wines and Spirits |
| Glenmorangie | Wines and Spirits |
| Belvedere | Wines and Spirits |
| Ardbeg | Wines and Spirits |
| Domaine Chandon California | Wines and Spirits |
| Ruinart | Wines and Spirits |
| Dior | Fashion |
| 10 Cane | Wines and Spirits |
| Fendi | Fashion and Leather Goods |
| R.M. Williams | Fashion and Leather Goods |
| Donna Karan | Fashion and Leather Goods |
| Emilio Pucci | Fashion and Leather Goods |
| Givenchy | Fashion and Leather Goods |
| Kenzo | Fashion and Leather Goods |
| Berluti | Fashion and Leather Goods |
| Moynat | Fashion and Leather Goods |
| Louis Vuitton | Fashion and Leather Goods |
| Marc Jacobs | Fashion and Leather Goods |
| Loewe | Fashion and Leather Goods |
| Céline | Fashion and Leather Goods |
| EDUN | Fashion and Leather Goods |
| Thomas Pink | Fashion and Leather Goods |
| Acqua di Parma | Perfumes and Cosmetics |
| Benefit Cosmetics | Perfumes and Cosmetics |
| Parfums Christian Dior | Perfumes and Cosmetics |
| Guerlain | Perfumes and Cosmetics |
| Make Up for Ever | Perfumes and Cosmetics |
| TAG Heuer | Watches and Jewelry |
| Zenith | Watches and Jewelry |
| Hublot | Watches and Jewelry |
| Chaumet | Watches and Jewelry |
| Bulgari | Watches and Jewelry |
| De Beers Diamond Jewellers | Watches and Jewelry |
| FRED | Watches and Jewelry |
| Sephora | Specialist retailing |
| DFS | Specialist retailing |
| Le Bon Marché | Specialist retailing |
On March 7, 2011, LVMH announced the acquisition of the 50.4% family-owned shares of the Italian jeweller Bulgari and the intention to make a tender offer for the rest (publicly owned).[13] The transaction is about $5.2 billion.[14]
On March 7, 2013, National Business Daily reported that mid-priced clothing brand QDA will open stores with the assistance of LVMH’s private equity LCapitalAsia and the Chinese apparel company Xin Hee Co., Ltd. in Beijing.[15] In 2011, LVMH invested $640 million in establishing LCapitalAsia.[15] LVMH sales "decreased by about 10 percent from in 2011" in China and LVMH has stopped "opening stores in second and third-tier cities in mainland China".[15] Xue Shengwen, senior researcher at ChinaVenture, said that the developing trend of the market is to take advantage of more acceptable prices.[15]
Patronage[edit]
LVMH is a major patron of art in France. The group supported about ten exhibitions as "Le grand monde d’Andy Warhol"[16] and "Picasso et les maîtres"[17] at le Grand Palais in Paris. LVMH also endorsed the patronage of "l’atelier d’Alberto Giacometti" and "Yves Klein" at Centre Georges Pompidou.
In addition, LVMH foundation created the "young creators LVMH award", an international competition opened to French and international beaux-arts students.[18] Each year, six grants are allocated to the winners.
The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia have used the instruments.
References[edit]
- ^ a b c d e f g h i "Annual Report 2010". LVMH.com. Retrieved 4 February 2011.
- ^ a b "LVMH Moët Hennessy Louis Vuitton SA – Company History". Funding Universe. Retrieved 30 June 2011.
- ^ Rachel Sanderson in Milan (6 March 2011). "Retail & Consumer – LVMH to take controlling stake in Bulgari". FT.com. Retrieved 30 June 2011.
- ^ "LVMH group, Moet Hennessy Louis Vuitton: world leader in luxury, listed on CAC 40 index.". LVMH.com. Retrieved 30 June 2011.
- ^ The Beginnings of Château d'Yquem Château d'Yquem Retrieved 29 January 2010
- ^ a b c "LVMH – Reference Document 2009". LVMH. pp. 237–238. Retrieved 24 April 2010. Financière Jean Goujon, "a wholly owned subsidiary of Christian Dior", held 42.36% of capital and 59.01% of voting rights within the company at the end of 2010.
- ^ "25. Bernard Arnault". CNN. Retrieved 11 May 2010.
- ^ a b c d "A solid performance in a contrasting economic environment". LVMH. Retrieved 12 December 2012.
- ^ "LVMH". European Equitites. Retrieved 12 December 2012.
- ^ a b LVMH First half 2009 interim report LVMH Retrieved 29 January 2010
- ^ Walsh, Dominic; Boyle, Catherine (23 April 2009). "LVMH denies being in Mot sale talks with Diageo". The Times (London).
- ^ Financial Documents LVMH 2012 [1]
- ^ Roberts, Andrew (7 March 2011). "LVMH Plans to Buy Bulgari for $5.2 Billion After Acquiring Majority Stake". Bloomberg. Retrieved 24 October 2011.
- ^ Wendlandt, Astrid; Simpson, Ian (7 March 2011). "LVMH bags jeweller Bulgari in $5.2 billion deal". Reuters. Retrieved 24 October 2011.
- ^ a b c d Kang, Xiaoxiao (March 7 2013). "LVHM investing in Chinese mid-priced clothing market". Morning Whistle. Retrieved 2013-05-10.
- ^ Présentation de l’expo Warhol Rmn.fr
- ^ LVMH, mécène de l’exposition Rmn.fr
- ^ Prix LVMH des jeunes créateurs Artefact Paris
External links[edit]
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Wikimedia Commons has media related to: Moët Hennessy Louis Vuitton |
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