LVMH

LVMH Moët Hennessy • Louis Vuitton S.A.

Type	Société Anonyme
Traded as	Euronext: MC
Industry	Luxury goods, retail
Predecessor	Moët Hennessy and Louis Vuitton
Founded	1987
Headquarters	Paris, France
Area served	Worldwide
Key people	Bernard Arnault (Chairman and CEO), Antonio Belloni (managing director)
Products	Clothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, watches and wines
Services	Department stores
Revenue	€20.32 billion (2010)[1]
Operating income	€4.169 billion (2010)[1]
Profit	€3.032 billion (2010)[1]
Total assets	€37.16 billion (2010)[1]
Total equity	€18.20 billion (2010)[1]
Employees	83,540 (2010)[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, Île-de-France, France. The company was formed after 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.

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.^[5] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH.^[6] 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.^[7]

Financial data

Financial Data (in million euros)	2006[8]	2007[8]	2008[8]	2009[8]	2010[1]
Sales	15,306	16,481	17,193	17,053	20,320
Net profit	2,160	2,331	2,318	1,973	3,032
Total equity	11,594	12,528	13,887	14,785	18,204

Corporate structure

LVMH is based in 30 avenue Hoche in the 8th arrondissement Paris, Île-de-France, 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). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.

Shareholders

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).^[5] A further 2.43% of shares were declared as treasury stock, with the remainder being free float.^[5] LVMH hold 66% of the drinks division, Moét Hennessy, with the remaining 34% held by Diageo.^[11]

Subsidiaries

A partial list including some of LVMH's most well known brands and subsidiaries:^[10]

Company	Sector
Moët et Chandon	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
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
Céline	Fashion and Leather Goods
Thomas Pink	Fashion and Leather Goods
Acqua di Parma	Perfumes and Cosmetics
Parfums Christian Dior	Perfumes and Cosmetics
Guerlain	Perfumes and Cosmetics
Bulgari	Watches and Jewelry
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 Marché	Selective Retailing

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 (publicly owned).^[12] The transaction is about $5.2 billion.^[13]

References

1. ^ ^{a b c d e f g h i} "Annual Report 2010". LVMH.com. http://www.lvmh.com/comfi/pdf/LVMH_RA_2010_GB.pdf. Retrieved 4 February 2011. 
2. ^ ^{a b} "LVMH Moët Hennessy Louis Vuitton SA - Company History". Funding Universe. http://www.fundinguniverse.com/company-histories/LVMH-Moeuml;t-Hennessy-Louis-Vuitton-SA-Company-History.html. Retrieved June 30, 2011. 
3. ^ Rachel Sanderson in Milan (March 6, 2011). "Retail & Consumer - LVMH to take controlling stake in Bulgari". FT.com. http://www.ft.com/cms/s/0/5f2242ac-4847-11e0-b323-00144feab49a.html. Retrieved June 30, 2011. 
4. ^ "LVMH group, Moet Hennessy Louis Vuitton: world leader in luxury, listed on CAC 40 index.". LVMH.com. http://www.lvmh.com/fonctionalite/pg_faq_histo.asp. Retrieved June 30, 2011. 
5. ^ ^{a b c} "LVMH – Reference Document 2009". LVMH. pp. 237–238. http://www.lvmh.com/comfi/pdf_gbr/LVMH_-_Reference_Document_2009.pdf. 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.
6. ^ "25. Bernard Arnault". CNN. http://money.cnn.com/galleries/2007/fortune/0711/gallery.power_25.fortune/25.html. Retrieved 11 May 2010. 
7. ^ The Beginnings of Château d'Yquem Château d'Yquem Retrieved 2010-1-29
8. ^ ^{a b c d} http://www.lvmh.com/comfi/pdf_gbr/Summary_2008_figures.pdf
9. ^ http://www.euronext.com/fic/000/038/978/389785.pdf
10. ^ ^{a b} LVMH First half 2009 interim report LVMH Retrieved 2010-1-29
11. ^ Walsh, Dominic; Boyle, Catherine (23 April 2009). "LVMH denies being in Mot sale talks with Diageo". The Times (London). http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article6150701.ece. 
12. ^ Roberts, Andrew (7 March 2011). "LVMH Plans to Buy Bulgari for $5.2 Billion After Acquiring Majority Stake". Bloomberg. http://www.bloomberg.com/news/2011-03-07/bulgari-family-agrees-to-sell-a-controlling-stake-to-lvmh-in-share-swap.html. Retrieved 24 October 2011. 
13. ^ Wendlandt, Astrid; Simpson, Ian (7 March 2011). "LVMH bags jeweller Bulgari in $5.2 billion deal". Reuters. http://www.reuters.com/article/2011/03/07/us-bulgari-lvmh-idUSTRE7261BS20110307. Retrieved 24 October 2011. 

External links

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