Luxury fashion, jewelry, beauty products, wine and spirits
Reviewed by Margaret JamesReviewed by Margaret James
Moët Hennessy Louis Vuitton SE (LVMUY), referred to as LVMH or Louis Vuitton, is a French luxury conglomerate formed from the 1987 merger of the renowned fashion house Louis Vuitton and wines and spirits company Moët Hennessy. The merger created one of the world’s premier sellers of luxury products.
Moët Hennessy was the product of a merger between Moët & Chandon, producer of luxury champagne brand Dom Perignon, and cognac maker Hennessy in 1971. LVMH has been in existence in its current form since 1987 but the Louis Vuitton brand has a much longer history. It was launched by its namesake founder in 1854.
LVMH owns 75 brands in six business groups: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other Activities. These business groups own brands such as Fendi, Givenchy, TAG Heuer, and many more.
Louis Vuitton has been led by chair and CEO Bernard Arnault since 1989. Arnault took a majority stake in the company and has since guided LVMH in a fast-paced acquisition spree, picking up dozens of new acquisitions in three decades. LVMH has seen major success with its strategy of acquiring luxury brands across multiple areas. It reported a net profit of €15.2 billion on revenue of €86.2 billion in 2023. LVMH’s market capitalization was $372.73 billion as of October 2024.
Key Takeaways
- LVMH reported a net profit of €15.2 billion on revenue of €86.2 billion in 2023.
- LVMH owns 75 brands in six business groups: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other Activities.
- Tiffany & Co. and Bulgari are components of the LVMH Watches and Jewelry group.
- Fendi and Christian Dior are included in the Fashion and Leather Goods group.
- The company has seen major success with its strategy of acquiring many luxury brands across multiple areas.
Tiffany & Co.
- Type of business: Luxury jewelry
- Acquisition price: $15.8 billion
- Date of purchase: Jan. 7, 2021 (acquisition completed)
Tiffany was founded by Charles Lewis Tiffany in 1837 and has since grown into a leading global design house with a reputation for innovative jewelry design and expert craftsmanship. The company offers necklaces, bracelets, earrings, rings, and watches, as well as a variety of home accessories and fragrances.
LVMH announced plans to acquire Tiffany in late 2019 in an agreement that valued the jeweler at approximately $16.2 billion. The coronavirus pandemic and its negative effects on the luxury jewelry market then prompted Arnault to renegotiate a discount from the originally agreed-upon acquisition price.
His initial demand for an 11% reduction in the deal price was met with a lawsuit from Tiffany that was intended to ensure the enforcement of the initial acquisition agreement. The two companies agreed to a purchase price of $131.50 per share in the end, a 2.6% discount from the originally agreed-upon $135 per share. It brought the total purchase price to approximately $15.8 billion.
Tiffany joined the company’s Watches and Jewelry business group. LVMH said that Tiffany would help to bolster its position in jewelry and expand its presence in the U.S. The deal was also expected to strengthen Tiffany’s presence in Europe and China.
Important
LVMH doesn’t typically provide revenue and sales figures for its brands.
Bulgari
- Type of business: Luxury goods
- Acquisition price: €3.7 billion
- Date of purchase: March 7, 2011
Bulgari is known for creativity and colorful jewelry designs and has been at the forefront of luxury goods since its founding in 1884 by Sotirio Bulgari. LVMH announced the deal in March 2011, dramatically expanding the company’s Watches and Jewelry business group. The acquisition included the purchase of a 50.4% stake in Bulgari from the Bulgari family as well as a tender offer for the remainder of the company.
Watches and Jewelry remains one of the smaller LVMH groups when it comes to profit and when compared to Fashion and Leather Goods. In 2023, this group delivered €2.16 billion profit on €10.9 billion in revenue in 2023.
Fendi
- Type of business: Fashion
- Acquisition price: Estimated $259.4 million to acquire majority stake
- Date of purchase: Nov. 24, 2001
Italian luxury fashion house Fendi was founded by Adele and Edoardo Fendi in 1925. The company is known for its fur, leather goods, and other luxury products.
LVMH bought a stake in Fendi before becoming a majority stakeholder in 2001. LVMH’s ownership began when it and Prada each bought a 25.5% stake in Fendi in 2000. LVMH then became the majority stakeholder in November 2001 when it agreed to buy Prada’s stake. LVMH continued to add to its growing stable of luxury and designer brands in doing so.
Fendi is a part of LVMH’s Fashion and Leather Goods group. It generated €16.83 billion in profit on €42.17 billion in revenue in 2023.
Christian Dior
- Type of business: Fashion
- Acquisition price: 1 franc
- Date of purchase: 1984
Fashion giant Christian Dior is famous for its designer clothing and it’s part of LVMH’s highly profitable Fashion and Leather Goods group. The brand was founded in 1946 by its namesake founder.
Arnault’s investment in Christian Dior predates the existence of LVMH. Arnault purchased Parisian textile group Boussac, which was in bankruptcy protection, for a symbolic one franc in 1984. Boussac’s assets included Christian Dior.
The Dior brand has proven to be a staple of Arnault’s holdings and LVMH’s business ever since. LVMH and Arnault proposed a complex $13.1 billion transaction in 2017 to consolidate the company’s ownership of Dior by buying out minority shareholders.
Sephora
- Type of business: Personal care and beauty products
- Acquisition price: $262 million
- Date of purchase: July 1997
Sephora was founded in 1969. It’s a retailer of personal care and beauty items boasting roughly 500 brands. Sephora was part of a family of brands owned by founder Dominique Mandonnaud at the time of LVMH’s acquisition. Sephora is a part of LVMH’s Selective Retailing business group and generated a profit of €1.39 billion on €17.89 billion in revenue in 2023.
Veuve Clicquot
- Type of business: Champagne
- Acquisition price: Not available
- Date of purchase: 1986
Veuve Clicquot was founded in the late 18th century by Philippe Clicquot. The Clicquot winemaking business that eventually became Veuve Clicquot was well known in its early years among champagne connoisseurs across Europe and the U.S. The company is credited with inventing rosé champagne.
Louis Vuitton purchased Veuve Clicquot in 1986, just a year before the fashion company merged with Moët Hennessy. LVMH saw €2.11 billion in profit on total revenue of €6.6 billion from its Wines and Spirits group in 2023 of which Veuve Clicquot is a significant member.
LVMH Diversity & Inclusiveness Transparency
As part of our effort to improve the awareness of the importance of diversity in companies, we have highlighted the transparency of LVMH’s commitment to diversity, inclusiveness, and social responsibility. This chart illustrates how LVMH reports the diversity of its management and workforce. This shows if LVMH discloses data about the diversity of its board of directors, C-Suite, general management, and employees overall across a variety of markers. We have indicated that transparency with a ✔.
| Race | Gender | Ability | Veteran Status | Sexual Orientation | |
| Board of Directors | |||||
| C-Suite |
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| General Management | ✔ | ||||
| Employees | ✔ | ✔ |
Has There Been a Major Change With LVMH’s Selective Retailing Group?
Chairman and CEO of Selective Retailing Christopher de Lapuente announced his retirement in September 2024, effective Oct. 31, 2024. De Lapuente oversaw the Selective Retailing group for more than 13 years beginning in January 2021 and is credited with Sephora’s success.
Did All LVMH Business Groups Report Revenue Growth in 2023?
No. The Wines and Spirits group suffered a -4% revenue decline in 2023 and profit from recurring operations dropped by 2%, LVMH partially attributes this to high inventory levels.
What Is a Tender Offer?
A tender offer is a bid by a company or third party to buy a significant portion of a target company’s stock. The U.S. Securities and Exchange Commission (SEC) imposes numerous rules for the process including regulations for disclosure, notification to stockholders, and minimum offering periods.
The Bottom Line
LVMH owns 75 brands segregated into six business groups: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other Activities. These groups focus on luxury products such as those offered by Christian Dior and Tiffany & Co. LVMH was created when Louis Vuitton and Moët Hennessy merged in 1987. It boasts significant annual net profits and revenues.
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