LVMH Moët Hennessy • Louis Vuitton S.A.
( ),
usually shortened to LVMH, is a French
holding company and one of the world's
largest luxury goods
conglomerates. 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.
The group is partly owned by the
Christian Dior group, and
Bernard Arnault is Chairman and CEO of both
companies. 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.
In 2001 De Beers launched a joint venture with LVMH in order to
establish
De Beers as a retail brand.
LVMH created a prize called the "Prix Science pour l'Art", which
nominated several scientists who would later receive the
Nobel Prize. The last Prize was awarded in 1997
to
Rolf Landauer.
Financial data
Financial Data in euro millions
| Year |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
| Sales |
12 693 |
11 962 |
12 623 |
13 910 |
15 306 |
16 481 |
17 193 |
| EBITDA |
2 300 |
2 796 |
2 745 |
3 382 |
3 646 |
4 076 |
? |
| Net Result share of the group |
556 |
723 |
1 010 |
1 440 |
1 879 |
2 025 |
2 026 |
| Net Debt |
6 455 |
5 427 |
5 100 |
4 318 |
3 400 |
? |
? |
- :::::Source : OpesC
Corporate structure
LVMH is
based in Paris
,
France. The company is listed on the
Euronext Paris exchange and is a constituent of the
CAC 40 index. As of 2008, the group had a
turnover of 17,2 billion euros with a net income of 2,318 billion
euros. The group currently employs 77,000 people. 30% of LVMH's
staff work in France. LVMH operates over 2,300 stores worldwide.
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.
Subsidiaries
LVMH's brands include:
References
External links