Jump to content

LVMH

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Alaney2k (talk | contribs) at 06:23, 31 January 2021 (→Subsidiaries: add La Samaritaine). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

LVMH Moët Hennessy Louis Vuitton
Company typePublic (Societas Europaea)[1]
Euronext: MC
CAC 40 Component
IndustryLuxury goods
Predecessors
Founded1987; 37 years ago (1987)
FoundersAlain Chevalier
Henry Racamier
Headquarters
Paris
,
France[1]
Area served
Worldwide
Key people
Bernard Arnault (Chairman and CEO)
Antonio Belloni (MD)
ProductsClothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, watches, wines
ServicesDepartment stores
RevenueIncrease €53.7 billion (2019)[2]
Increase €11.5 billion (2019)[2]
Increase €7.17 billion (2019)[2]
Total assetsIncrease €128.550 billion (2018)[2]
Total equityIncrease €33.957 billion (2018)[2]
Number of employees
145,247 (2018)[2]
ParentChristian Dior SE (41.1%)
SubsidiariesList of subsidiaries
WebsiteLVMH.com

LVMH Moët Hennessy Louis Vuitton (French pronunciation: [moɛt‿ɛnɛsi lwi vɥitɔ̃]),[1] commonly known as LVMH, is a French multinational corporation and conglomerate specializing in luxury goods, headquartered in Paris, France.[3] The company was formed in 1987 through the merger of fashion house Louis Vuitton (founded in 1854) with Moët Hennessy, which was established after the 1971 merger between the champagne producer Moët & Chandon and the cognac producer Hennessy.[4][5][6] LVMH controls around 60 subsidiaries that each manage a small number of prestigious brands, 75 in total. The subsidiaries are often managed independently, under the umbrellas of six branches: Fashion Group, Wines and Spirits, Perfumes and Cosmetics, Watches and Jewelry, Selective Distribution, and Other Activities. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.[7]

History

In the 1990s, Bernard Arnault had the idea to create a group of luxury brands.[8]

The Dapifer reported that LVMH would gain ownership of Christian Dior haute couture, leather, both men's and women's ready-to-wear, and footwear lines.[9]

In January 2018, LVMH announced record sales of 42.6 billion Euros in 2017, up 13% over the previous year, as all divisions turned in strong performances. In the same year, the net profit increased 29%.[10]

Co-founder Alain Chevalier died 1 November 2018, aged 87.[11]

Arnault's successful integration of various famous aspirational brands into a single group has inspired other luxury companies to do the same. Thus, the French conglomerate Kering and the Swiss-based Richemont have also created extended portfolios of luxury brands. The company is a component of the Euro Stoxx 50 stock market index.[12]

In November 2019, LVMH planned to acquire Tiffany & Co. for approximately US $16.2 billion. The deal was expected to close by June 2020.[13] As of 2019, Tiffany operated 321 stores worldwide, with net sales of US $4.44 billion.[14] and net earnings of $586 million. Tiffany regions include the Americas, Asia-Pacific, Japan, Europe and the United Arab Emirates.[15][16] The company issued a statement in September 2020 indicating that the takeover would not proceed, and that the deal was "invalid" because of Tiffany's handling of the business during the COVID-19 pandemic.[17] Subsequently, Tiffany filed suit against LVMH, asking the court to compel the purchase or to assess damages against the defendant; LVMH planned to counter sue, alleging that mismanagement had invalidated the purchase agreement.[18]

In mid-September 2020, a reliable source told Forbes (magazine) that the reason for Arnault's decision to cancel the Tiffany purchase was purely financial: because Tiffany was paying millions in dividends to shareholders despite a financial loss of US$32 million during the pandemic. Some US$70 million had already been paid out by Tiffany, with an additional US$70 million scheduled to be paid in November 2020.[19] LVMH filed a counterclaim against the court action commenced by Tiffany; a statement issued by LMVH blamed Tiffany's mismanagement during the pandemic and claimed that it was 'burning cash and reporting losses'". [20] In late October 2020 however, Tiffany and LVMH agreed to the original takeover plan, though at a slightly reduced price of nearly $16 billion, a minor reduction of 2.6% from the aforementioned deal. The new deal reduced the amount paid per share by LVMH from the original price of $135 to $131.50.[21]

LVMH has the largest market capitalization in France,[22] and now in the Euro zone, with a record of 261 billion euros ($317.6 billion) as of December 31, 2020.[23] As of December 2020, Arnault's own fortune was nearly half that, with a personal net worth of $151.7 billion.[24]

Corporate structure

LVMH is headquartered in the 8th arrondissement of Paris, France.[4] The company is listed on the Euronext Paris exchange,[25] 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.[26] By 29 February 2016, the company had a share value of 78,126 million euros, distributed in 506,980,299 shares. In 2013, with revenue of $21.7 billion, LVMH was ranked first luxury goods company in Deloitte's "Global Powers of Luxury Goods" report.[27] The group currently employs more than 83,000 people.[26] Thirty percent of LVMH's staff work in France. LVMH operates over 2,400 stores worldwide.[28] 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).

Shareholders

At the end of 2017, the only declared major shareholder in LVMH was Arnault Family Group, the holding company of Bernard Arnault. The group's control amounted to 46.84% of LVMH's stock and 63.13% of its voting rights.[29]

LVMH holds 66% of the drinks division, Moët Hennessy, with the remaining 34% held by Diageo.[30]

Christian Dior SE is the main holding company of LVMH, owning 40.9% of its shares, and 59.01% of its voting rights.[31] Bernard Arnault is Chairman and CEO of both companies.[32] In 2017, Arnault purchased all the remaining Christian Dior shares in a reported $13.1 billion buy out.

Subsidiaries

A partial list including some of LVMH's best-known brands and subsidiaries:[28][33][34]

Make Up For Ever was established in 1984.[35] and was acquired by LVMH in 1999.[36]

On 7 March 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, which was publicly owned.[37] The transaction was about $5.2 billion.[38] In 2011, LVMH invested $640 million in establishing LCapitalAsia.[39]

On 7 March 2013, National Business Daily reported that mid-priced clothing brand QDA would open stores with the assistance of LVMH's private equity LCapitalAsia and the Chinese apparel company Xin Hee Co., Ltd. in Beijing.[39] In 2011, LVMH invested $640 million in establishing LCapitalAsia.[39] LVMH sales "decreased by about 10 percent from in 2011" in China, and LVMH stopped "opening stores in second and third-tier cities in mainland China".[39] Xue Shengwen, a senior researcher at ChinaVenture, said the developing trend of the market is to take advantage of more acceptable prices.[39]

In February 2014, LVMH entered into a joint venture with the Italian fashion brand Marco De Vincenzo, taking a minority 45% stake in the firm.[40][41]

On 12 May 2019 the fashion house Fenty, styled as FEИTY, created by singer Rihanna was launched by LVMH in Paris. It is the first new fashion house by LVMH in 32 years and she is the first woman of colour to head a brand under LVMH.[42]

On 15 July 2019, LVMH announced a new partnership to further develop the Stella McCartney House.[43]

On 25 November 2019, LVMH announced its attempt to acquire Tiffany & Co. for $16.2 billion USD.[44] The deal was expected to close by mid-2020 [45] but was cancelled by LVMH in September 2020.[17]

On 29 November 2019, LVMH announced its 55% stake in Château d’Esclans, the producer best-known for the brand Whispering Angel.[46] The acquisition was part of LVMH's move to offer a beloved high-end rosé portfolio, in addition to reaching customers worldwide.[47] In a press release distributed by LVMH,[48]

On 18 September 2020, LVMH Submitted a $16 Billion Deal to acquire Tiffany & Co. for European Approval.[49] By that time however, LVMH had announced that it intended to back out of the deal to acquire Tiffany. The latter had filed suit in Delaware asking the court to compel the purchase or to assess damages against the defendant; LVMH planned to counter sue, alleging that mismanagement had invalidated the purchase agreement.[50] In mid-September 2020, a reliable source told Forbes (magazine) that LVMH had decided to cancel the deal because Tiffany was paying millions in dividends to shareholders despite financial losses during the pandemic. Some US$70 million had already been paid by Tiffany, with an additional US$70 million to be paid in November 2020.[51]

Journées Particulières

Launched in 2011, Journées Particulières allow visitors to enter scores of ateliers, studios, caves and mansions within the LVMH, with no admission charge.

For the first edition we were not at all certain that the public would come. I speak about that with some emotion. I remember coming along avenue Montaigne at 8AM that first morning and seeing hundreds of people, families, elderly ladies and little kids waiting for the doors of avenue Montaigne 30 to open and I thought we are going to write a beautiful page in history

said Arnault, referring to Christian Dior's headquarters. It is staged every two years, and has opened doors in France, Italy, Switzerland, the UK, the Netherlands, Spain and Germany, with 56 brands welcoming guests into over 70 sites on four continents. The 2017 issue attracted 145,000 visitors.[52]

Charity

LVMH is a major patron of art in France. The group supported about ten exhibitions as "Le grand monde d’Andy Warhol"[53] and "Picasso et les maîtres"[54] at le Grand Palais in Paris. LVMH also endorsed the patronage of "l’atelier d’Alberto Giacometti" and "Yves Klein" at Centre Georges Pompidou.

Since 2005, when the LVMH flagship store opened in Paris at 3, avenue George V, 75008, the company presented close collaboration with contemporary artists.[55] Features included a light sculpture by American James Turrell, a 20-metre (65 feet) long "travelling staircase" showcasing the work of American video artist Tim White-Sobieski and an elevator linking the store to the top floor by Iceland's Olafur Eliasson.[56]

In 2006, gallery space was inaugurated on the second floor of the same building and named "Espace Culturel".[57] "Icônes" was one of the first exhibitions.[58] Shigeru Ban, Sylvie Fleury, Zaha Hadid, Bruno Peinado, Andrée Putman, Ugo Rondinone, James Turrell, Tim White-Sobieski and Robert Wilson were the nine artists invited by Louis Vuitton to participate in it.[59]

In addition, LVMH foundation created the "young creators LVMH award", an international competition opened to French and international beaux-arts students.[60] Each year, six grants are allocated to the winners.

In November 2013, LVMH created the LVMH Young Fashion Designer Prize, which comes with a €300,000 grant with a year of mentoring and is the brainchild of Delphine Arnault.[61] The first winner has been chosen in 2014.[61][62]-In February 2014 20 finalist for the prize were shown in London, such as Simone Rocha, Thomas Tait, Meadham Kirchhoff, Marques'Almeida, J JS Lee, and others.[63] In May 2015 Marques'Almeida was announced as the second winner.[64]

LVMH underwrites other fashion competitions, including the Andam prize in France, the International Festival of Fashion and Photography in Hyères, France, an investment fund for young designers created by the French Ministry of Culture and Communication, and a scholarship program and sponsored lecture theater at Central Saint Martins in London.[61]

The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia have used the instruments.

In 2014, LVMH opened the Fondation Louis Vuitton pour la Creation in a new building designed by Frank Gerry in the Bois de Boulogne in Paris. The Fondation is designed the Group's own museum to present its collections and organize majors world-class arts exhibitions.

On 26 August 2019, Bernard Arnault has declared that LVMH will donate $11 million to help fight the 2019 Brazil wildfires.[65]

During the COVID-19 crisis the group shifted its production of perfume and spirits towards hand sanitizer. This production of 12 tons has been offered to hospitals in Paris, France.[66]

E-commerce

On 24 May 2018, LVMH made the e-commerce push by investing in an online fashion search business Lyst as the world's biggest luxury brands to expand their presence online and capture younger shoppers.[67] It is injecting over $60 million into Lyst where LVMH is leading, a $60 million funding round to which it has contributed about 45 percent. Lyst plans to use the new funding by tapping LVMH's deep international expertise and also, to drive global expansion.[68]

Financial data

Financial data (in million euros) 2006[69] 2007[69] 2008[69] 2009[69] 2010[26] 2011 2012 2013 2014[70] 2015[71] 2016[72] 2017[2]
Sales 15,306 16,481 17,193 17,053 20,320 23,659 28,103 29,016 30,638 35,664 37,600 42,636
Net profit (before minority interests) 2,160 2,331 2,318 1,973 3,032 3,065 3,909 3,947 6,105 4,001 4,363 5,616
Total equity 11,594 12,528 13,887 14,785 18,204 23,512 25,666 27,907 23,003 25,799 27,903 30,260

See also

References

  1. ^ a b c "LVMH MOET HENNESSY LOUIS VUITTON". Infogreffe. Retrieved 9 September 2020.
  2. ^ a b c d e f g "Annual Report 2017" (PDF). LVMH.com. Retrieved 29 January 2018.
  3. ^ "LVMH Moët Hennessy Louis Vuitton". Greffe du tribunal de commerce de Paris. Retrieved 9 September 2020.
  4. ^ a b "LVMH Moët Hennessy Louis Vuitton SA – Company History". Funding Universe. Retrieved 30 June 2011.
  5. ^ Rachel Sanderson in Milan (6 March 2011). "Retail & Consumer – LVMH to take controlling stake in Bulgari". FT.com. Retrieved 30 June 2011.
  6. ^ "LVMH group, Moet Hennessy Louis Vuitton: world leader in luxury, listed on CAC 40 index". LVMH.com. Archived from the original on 7 June 2011. Retrieved 30 June 2011.
  7. ^ The Beginnings of Château d'Yquem Château d'Yquem Retrieved 29 January 2010
  8. ^ https://www.youtube.com/watch?v=wRZvHxUJUoE
  9. ^ "LVMH Subsidiaries, Brands and the $13 Billion Christian Dior Buy Out - The Dapifer". THE DAPIFER. 25 April 2017. Retrieved 10 June 2017.
  10. ^ "Luxury Group LVMH Cautious for 2018 Despite Record Profits".
  11. ^ https://wwd.com/business-news/human-resources/alain-chevalier-co-founder-of-lvmh-dies-at-1202897939/
  12. ^ "Frankfurt Stock Exchange". Archived from the original on 8 February 2019. Retrieved 22 October 2015.
  13. ^ "LVMH Acquires Tiffany & Co. For $16.2 Billion". Forbes. 26 November 2019. Retrieved 30 November 2019. LVMH will "develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come"
  14. ^ "Number of Tiffany & Co. stores by region worldwide in 2018, by region". Statista. 9 August 2019. Retrieved 30 November 2019.
  15. ^ "Tiffany & Co". Bloomberg. 11 July 2019. Retrieved 30 November 2019. and also engages in direct selling through internet, catalog, and business gift operations
  16. ^ "Number of Tiffany & Co. stores by region worldwide in 2018, by region". Statista. 9 August 2019. Retrieved 30 November 2019.
  17. ^ a b "LVMH Says Tiffany's Handling of Pandemic invalidates deal". Market Screener. Retrieved 11 September 2020.
  18. ^ "Grandmaster Bernard Arnault looks to the Tiffany endgame". 247 News. Retrieved 12 September 2020.
  19. ^ "Billionaire Arnault On The Offensive After Tiffany Pays Out $140 Million Pandemic Dividends Despite $32 Million In Losses". Forbes. Retrieved 16 September 2020.
  20. ^ "LVMH files countersuit against Tiffany over US$14.5B deal". CTV News. 29 September 2020. Retrieved 1 October 2020.
  21. ^ "LVMH agrees to buy Tiffany for lower price". The Washington Post.
  22. ^ "Tiffany Agrees To Accept Lower Price For Acquisition By LVMH". Business Insider. 29 October 2020. Retrieved 29 October 2020.
  23. ^ "LVMH Moet Hennessy Louis Vuitton SA Unsponsored ADR (LVMUY : OTCMKTS) Stock Price & News - Google Finance". www.google.com. Retrieved 31 December 2020.
  24. ^ "Bernard Arnault & family". Forbes. Retrieved 31 December 2020.
  25. ^ "LVMH". European Equitites. Archived from the original on 30 January 2013. Retrieved 12 December 2012.
  26. ^ a b c "Annual Report 2010" (PDF). LVMH.com. Retrieved 4 February 2012.[permanent dead link‍]
  27. ^ Deloitte Global Powers of Luxury Goods 2014 report Archived 17 June 2015 at the Wayback Machine
  28. ^ a b LVMH First half 2009 interim report Archived 24 August 2009 at the Wayback Machine LVMH Retrieved 29 January 2010
  29. ^ "LVMH – Financial Report 2017" (PDF). LVMH. p. 4. Archived from the original (PDF) on 29 January 2018. Retrieved 30 March 2018..
  30. ^ Walsh, Dominic; Boyle, Catherine (23 April 2009). "LVMH denies being in Mot sale talks with Diageo". The Times. London.
  31. ^ "Organizational chart as of April 30, 2013". Dior. Archived from the original on 17 December 2013. Retrieved 12 April 2016.
  32. ^ "25. Bernard Arnault". CNN. Archived from the original on 11 February 2010. Retrieved 11 May 2010.
  33. ^ Financial Documents LVMH 2012 Archived 28 February 2013 at the Wayback Machine
  34. ^ https://www.lvmh.com/houses/
  35. ^ Wellington, Elizabeth (1 August 2013). "Mirror, Mirror: Joy! Make Up For Ever comes to King of Prussia". philly.com. Retrieved 3 December 2013.
  36. ^ "Dany Sanz, pionnière du make-up". elle.fr. Retrieved 3 December 2013.
  37. ^ Roberts, Andrew (7 March 2011). "LVMH Plans to Buy Bulgari for $5.2 Billion After Acquiring Majority Stake". Bloomberg. Retrieved 24 October 2011.
  38. ^ Wendlandt, Astrid; Simpson, Ian (7 March 2011). "LVMH bags jeweller Bulgari in $5.2 billion deal". Reuters. Retrieved 24 October 2011.
  39. ^ a b c d e Kang, Xiaoxiao (7 March 2013). "LVHM investing in Chinese mid-priced clothing market". Morning Whistle. Retrieved 10 May 2013.
  40. ^ Astrid Wendlandt (24 February 2014). "LVMH invests in Italian brand Marco de Vincenzo". Reuters.
  41. ^ Socha, Miles (24 February 2014). "LVMH Takes Stake in Marco de Vincenzo". WWD. Retrieved 24 February 2014.
  42. ^ "Rihanna makes history with new label". 10 May 2019. Retrieved 31 May 2019.
  43. ^ "Stella McCartney and LVMH announce a new partnership to further develop the Stella McCartney House". LVMH. Retrieved 28 November 2019.
  44. ^ Business, Michelle Toh, CNN. "LVMH scoops up Tiffany for $16.2 billion". CNN. Retrieved 25 November 2019. {{cite web}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  45. ^ "France's Richest Man Bets $16 Billion on Lost Tiffany Luster". Bloomberg. 25 November 2019. Retrieved 30 November 2019.
  46. ^ "LVMH buys into Whispering Angel". Retrieved 3 December 2019.
  47. ^ "Moët Hennessy Buys Control of Luxury Rosé Leader Château d'Esclans". Wine Spectator. Retrieved 3 December 2019.
  48. ^ d’Esclans, Moët Hennessy; Château. "Château d'Esclans Côtes-de-Provence: The World Leader in Luxury Rosé Wines Joins Moët Hennessy". www.prnewswire.co.uk. Retrieved 3 December 2019.{{cite web}}: CS1 maint: multiple names: authors list (link)
  49. ^ "LVMH Submits $16 Billion Tiffany Deal for European Approval". Retrieved 20 September 2020.
  50. ^ "Grandmaster Bernard Arnault looks to the Tiffany endgame". 247 News. Retrieved 12 September 2020.
  51. ^ "Billionaire Arnault On The Offensive After Tiffany Pays Out $140 Million Pandemic Dividends Despite $32 Million In Losses". Forbes. Retrieved 16 September 2020.
  52. ^ https://uk.fashionnetwork.com/news/Antoine-Arnault-kicks-off-the-Journees-Particulieres-of-LVMH,1023951.html#.W8D31Sp1OUk
  53. ^ Présentation de l’expo Warhol Archived 13 December 2011 at the Wayback Machine Rmn.fr
  54. ^ LVMH, mécène de l’exposition Archived 21 July 2009 at the Wayback Machine Rmn.fr
  55. ^ "Exclusively for the Champs-Elysees".
  56. ^ "BlouinARTINFO".
  57. ^ "Espace Culturel".
  58. ^ "Louis Vuitton s'est associé à neuf créateurs".
  59. ^ https://uk.fashionnetwork.com/news/Antoine-Arnault-kicks-off-the-Journees-Particulieres-of-LVMH,1023951.html#.W8DVACp1OUk
  60. ^ Prix LVMH des jeunes créateurs Archived 6 April 2016 at the Wayback Machine Artefact Paris
  61. ^ a b c Miles Socha (21 November 2013). "LVMH to Establish Global Fashion Prize". WWM. Retrieved 21 November 2013.
  62. ^ http://www.lvmhprize.com/the-designers/?st=winner
  63. ^ Socha, Miles (13 February 2014). "Delphine Arnault Unveils LVMH Prize Finalists". WWD. Retrieved 13 February 2014.
  64. ^ Friedman, Vanessa (22 May 2015). "Marques'Almeida Wins 2015 LVMH Prize". The New York Times. Retrieved 24 May 2015.
  65. ^ Dawkins, David. "Bernard Arnault's LVMH Donates $11 Million To Fight Amazon Wildfires". Forbes. Retrieved 27 August 2019.
  66. ^ www.ft.com https://www.ft.com/content/e9c2bae4-6909-11ea-800d-da70cff6e4d3. {{cite web}}: Missing or empty |title= (help)
  67. ^ www.ETRetail.com. "Vuitton owner LVMH makes e-commerce push with Lyst investment - ET Retail". ETRetail.com. Retrieved 29 May 2018.
  68. ^ "LVMH Leads $60 Million Lyst Injection". The Business of Fashion. 24 May 2018. Retrieved 29 May 2018.
  69. ^ a b c d "A solid performance in a contrasting economic environment" (PDF). LVMH. Archived from the original (PDF) on 2 March 2012. Retrieved 12 December 2012.
  70. ^ "Annual Report 2014" (PDF). LVMH.com. Retrieved 5 January 2018.
  71. ^ "Annual Report 2015" (PDF). LVMH.com. Retrieved 5 January 2018.
  72. ^ "Annual Report 2016" (PDF). LVMH.com. Retrieved 5 January 2018.
Wikimedia Commons has media related to Moët Hennessy Louis Vuitton.
Retrieved from "https://en.wikipedia.org/w/index.php?title=LVMH&oldid=1003898174"