LVMH
LVMH Moët Hennessy Louis Vuitton (French: [mɔɛt‿ɛnɛsi lwi vɥitɔ̃]),[1] commonly known as LVMH, is a French[7] multinational holding and conglomerate specializing in luxury goods, headquartered in Paris.[8] The company was formed in 1987 through the merger of fashion house Louis Vuitton (founded in 1854) with Moët Hennessy, which was established following the 1971 merger between the champagne producer Moët & Chandon (founded in 1743) and the cognac producer Hennessy (founded in 1765).[9][10][11] In April 2023, LVMH became the first European company to surpass a valuation of $500 billion.[12] In 2023, the company was ranked 47th in the Forbes Global 2000.[13]
LVMH
- Euronext Paris: MC
- CAC 40 component
3 June 1987
Bernard Arnault
Alain Chevalier
Henry Racamier
Paris, France
6,097 stores (2023)[2]
Worldwide
Bernard Arnault (Chairman & CEO)[3][4]
Antonio Belloni (Group Managing Director)[5]
Antoine Arnault (Director)
Delphine Arnault (Director; Chairman & CEO, Christian Dior Couture)[6]
€86.15 billion (2023)[2]
€22.56 billion (2023)[2]
€15.17 billion (2023)[2]
€143.7 billion (2023)[2]
€62.70 billion (2023)[2]
-
- Arnault Family (48.60% capital, 64.33% voting rights (2023))
213,000 (2023)[2]
LVMH controls around 60 subsidiaries that manage 75 luxury brands. In addition to Louis Vuitton and Moët Hennessy, LVMH's portfolio includes Tiffany & Co., Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Loewe, Loro Piana, Kenzo, Celine, Sephora, Princess Yachts, TAG Heuer, and Bulgari. 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. LVMH owns Les Echos-Le Parisien Group, its media subsidiary. The wine estate Château d'Yquem, whose origins date back to 1593, is under LVMH ownership.[14] Bernard Arnault is the chairman and CEO of LVMH.
Media group[edit]
In 2007, Arnault bought France's leading financial newspaper, Les Echos, from the British company Pearson for 240 million euros (US$262 million) after a negotiating period of four months.[61]
In 2015, LVMH bought the newspapers Le Parisien and Aujourd’hui en France from the Amaury Group. Marie-Odile Amaury, the group's owner, initially hoped for 200 million euros ($218 million) which were later revised to 150 million ($163 million) during a previous sale attempt, but a bid of 50 million euros ($54.5 million) was made.[62] The financial transaction was completed at the end of October 2015.[63]
In 2018, the Lagardère Group sold the stock market information website Boursier.com to Les Echos-Le Parisien Group.[64] In March 2018, Pierre Louette, former CEO of Agence France-Presse from 2005 to 2010, was named CEO of Les Echos-Le Parisien Group, succeeding Francis Morel, who had held this position for seven years.[65]
In 2022, Les Echos-Le Parisien Group acquired 75% of the share capital of the French polling and research institute OpinionWay, which has 140 employees.[66]
Les Echos-Le Parisien Group also acquired Radio Classique, Connaissance des Arts,[66] and Investir and bought 50% of Medici.tv as well as Mezzo TV and EuroArts.[67][68] Les Echos-Le Parisien Group is also present in business services represented by its subsidiaries, such as Netexplo, Les Echos Etudes, and Les Echos Publishing, as well as communication services for companies such as Les Echos-Le Parisien Partenaires and Pelham Media.[67] ChangeNow, Investir Day, and VivaTech (co-founded with Publicis) are subsidiaries whose objective is to offer trade shows and corporate events.[67]
Philanthropy[edit]
Visual arts[edit]
LVMH is a major patron of art in France. The group supported about ten exhibitions as "Le grand monde d’Andy Warhol"[72] and "Picasso et les maîtres"[73] 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 collaborations with contemporary artists.[74] 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.[75]
In 2006, a gallery space was inaugurated on the second floor of the same building and named "Espace Culturel".[76] "Icônes" was one of the first exhibitions.[77] 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.[71]
In addition, LVMH foundation created the "young creators LVMH award", an international competition opened to French and international beaux-arts students.[78] Each year, six grants are allocated to the winners.
In 2014, LVMH opened the Fondation Louis Vuitton pour la Creation in a new building designed by Frank Gehry in the Bois de Boulogne in Paris. The Fondation is designed as the Group's own museum to present its collections and organize major world-class art exhibitions.
Fashion[edit]
In November 2013, LVMH created the LVMH Young Fashion Designer Prize, which comes with a €300,000 grant with a year of mentoring; it was the brainchild of Delphine Arnault.[79] In February 2014 20 finalists for the inaugural prize were shown in London, including Simone Rocha, Thomas Tait, Meadham Kirchhoff, Marques'Almeida, J JS Lee, and others,[80] and Thomas Tait was the winner.[81] Marques'Almeida won the 2015 prize.[81] In 2019, South African designer Thebe Magugu became the first African to win the prize,[82] and was commended by the President of South Africa, Cyril Ramaphosa.[83]
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.[79]
Music[edit]
The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia have used the instruments.
Humanitarian aid[edit]
On 26 August 2019, Bernard Arnault declared that LVMH would donate $11 million to help fight the 2019 Brazil wildfires.[84]
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.[85]
In 2022, Louis Vuitton announced a €1 million donation to UNICEF to help the Ukrainian victims of the Russian invasion.[86] On 2 March 2022, LVMH Group pledged €5 million to the Red Cross to those affected by the war.[87][88] In addition, the company closed 124 of its stores in Russia.[89]
2024 Olympic Games[edit]
LVMH is sponsoring the Paris 2024 Olympic and Paralympic Games as a premium partner.[90] The company spent €150 million to seal the partnership. Chaumet jewelry company is responsible for the design of the medals, one of LVMH's fashion houses, Berluti, will dress the French delegation, and Moët Hennessy will provide its products for the events.[91] Also as part of the partnership, LVMH will participate in the activities of French Popular Relief, a charity organization that facilitates access to sport for 1,000 children and young people aged 4 to 25 living in vulnerable situations.[90] The group will sponsor athletes, including French swimmer Leon Marchand, and its beauty retailer Sephora will sponsor the Olympic torch relay.[92]
E-commerce[edit]
On 24 May 2018, LVMH launched an e-commerce initiative by investing in online fashion search business Lyst, as a way for LVMH's luxury brands to expand their presence online and capture younger shoppers.[93] LVMH contributed to Lyst's $60 million funding round, which also included access to LVMH's international expertise, designed to drive Lyst's global expansion.[94]
