LVMH

From Wikipedia, the free encyclopedia

 This article does not cite any references or sources. (December 2007)
Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed.
LVMH Moët Hennessy – Louis Vuitton S.A.
Type Société Anonyme (S.A.)
Founded 1987
Headquarters Paris, France
Key people Bernard Arnault (Chairman & CEO)
Industry Luxury goods
Revenue $16.84 billion US (2005)
Employees 59,840 (2004)
Website http://www.lvmh.com/

LVMH Moët Hennessy • Louis Vuitton S.A. (Euronext: MC), 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.

Contents

[edit] Financial Data

Financial Data in euro millions
Year 2002 2003 2004 2005 2006
Sales 12 693 11 962 12 623 13 910 15 306
EBITDA 2 300 2 796 2 745 3 382 3 646
Net Result share of the group 556 723 1 010 1 440 1 879
Net Debt 6 455 5 427 5 100 4 318 3 400
Source :'OpesC'

[edit] 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 2006, the group had a turnover of 15,3 billion euros with a net income of 2 billion euros. The group currently employs 64,000 people. 30% of LVMH's staff work in France. LVMH operates over 1,900 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.

[edit] Subsidiaries

LVMH's brands include:

  • Other activities
    • Connaissance des Arts
    • Groupe Les Echos
    • Radio Classique


[edit] External links


v • d • e
Flag of France CAC 40 companies of France