LVMH

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LVMH Moët Hennessy - Louis Vuitton SE

logo
legal form Societas Europaea
ISIN FR0000121014
founding 1987
Seat Paris , FranceFranceFrance 
management Bernard Arnault (Chairman & CEO)
Antonio Belloni (Group Managing Director)
Number of employees 163,309 (2019)
sales 53.7 billion . Euro (2019)
Branch Luxury goods
Website www.lvmh.com
As of December 31, 2019

The listed LVMH Moët Hennessy - Louis Vuitton SE is the global leader in the luxury goods industry , holding rights to 70 different brands that are sold in around 4,600 stores worldwide.

history

The group was formed in September 1987 through the merger of the companies Louis Vuitton and Moët Hennessy , as their directors - Henry Racamier (Louis Vuitton) and Alain Chevalier (Moët Hennessy)  - feared a hostile takeover . The name of the group is made up of the traditional brands Louis Vuitton ( suitcase and bag manufacturer since 1854), Moët et Chandon ( champagne manufacturer since 1743) and Hennessy ( cognac producer since 1765). Moët and Hennessy had already merged to Moët Hennessy in 1971 . Chevalier became president of the new company and Racamier became its deputy.

The following year there was increasing disagreement over the operation of the company. Feeling dominated, Henry Racamier turned to French businessman Bernard Arnault , who had owned Christian Dior since 1985 (the Dior perfume business had been taken over by Moët et Chandon in 1968). Arnault should take over shares of LVMH and thereby strengthen Racamier's position. Alain Chevalier, however, turned to the Irish liquor giant Guinness in 1988 , who received a 12% share in Moët Hennessy in exchange for a 12% Guinness share.

Based in Paris

However, the supporters quickly became enemies in their own company: with the help of the investment bank Lazard Frères and Guinness , Bernard Arnault took over 45% of LVMH . A legal dispute with Henry Racamier - Alain Chevalier had since retired - followed, from which Arnault emerged victorious. Thus Arnault was able to become president of the group in 1989 against the wishes of the Vuitton and Hennessy family members.

1990 - Henry Racamier had also left the group in the meantime - Bernard Arnault and Guinness increased the mutual participation to 24%. The ubiquity of the Louis Vuitton monogram in the mid-1980s damaged the brand's reputation as a status symbol and led to declines in sales in the early 1990s. In 1994 the mutual holdings of LVMH and Guinness were restructured. Guinness now owned 34% of Moët Hennessy , LVMH received a buyback right for shares in the joint distribution company and the Guinness stake in Moët Hennessy .

LVMH expanded the business area to retail by investing in DFS Galleria (department stores in the duty-free area) in 1996 and in Sephora (international perfumery chain from France) in 1997 (and was also temporarily involved in Douglas ) - despite the large Diversification of the business areas and the expansion of the company. LVMH was particularly troubled by the Asian market . The attempt to slow down the merger of Grand Metropolitan (hotel and spirits group) and Guinness also turned into a setback. Bernard Arnault wanted to bring in Moët Hennessy to participate in the new liquor giant and had therefore invested billions in Grand Metropolitan . Grand Metropolitan merged with Guinness to become Diageo in December 1997 . At the end of the 1990s, the upheaval took place, the Asian markets grew again, and LVMH could now buy new brands.

From 2010, LVMH gradually acquired shares in its French competitor Hermès , while the family company , which feared a hostile takeover by LVMH, protected itself in 2011 by founding a family holding company. In 2013, LVMH had to pay a fine of eight million euros to the French banking regulator AMF for the opaque acquisition of Hermès shares . In autumn 2014, LVMH announced that Hermès' shares of almost 23% in the company would be sold to its own shareholders with a profit of 2.4 billion euros.

In 2011 LVMH took over the Italian competitor Bulgari . In 2012 LVMH bought the British men's tailor Arny's and the French leather goods manufacturer Les Tanneries Roux. In 2013, the majority of shares in the Italian cashmere manufacturer Loro Piana were acquired for 2 billion euros.

In October 2016 it was announced that LVMH would take over the majority of the Cologne-based suitcase manufacturer Rimowa in January 2017 . LVMH acquired an 80 percent stake for 640 million euros. The managing director and CEO is Bernard Arnault's 24-year-old son, Alexandre Arnault .

In late November 2019, LVMH announced the acquisition of US jeweler Tiffany for $ 16.2 billion.

Ownership structure and board of directors

Even today, Bernard Arnault is still chairman of the board and major shareholder through his holding Groupe Arnault . Groupe Arnault owns 46.60% of the shares. Other shareholders are: international institutional investors with 33.8%, French institutional investors with 13.5%, own holdings with 0.9% and a free float of 5.2%.

Brands of the LVMH group

It is divided into the following five business areas (in brackets: year of takeover / foundation or share):

Wine and spirits

Fashion and leather goods

Dior's fashion division , Christian Dior Couture SA, has been part of LVMH since 2017. Donna Karan , which was acquired between 2000 and 2001 , was sold in mid-2016. The Parisian leather goods company Moynat was bought by Bernard Arnaults Groupe Arnault in 2011 and is therefore not officially owned by LVMH.

Perfumes and cosmetics

watches and jewelry

retail trade

  • Duty Free Shoppers (DFS, 1998), Sephora (1997) (the perfumery chain Marie-Jeanne Godard , which was acquired in 1998 , was merged into Sephora ), Le Bon Marché (1998), Starboard Cruise Services (2000), La grande epicerie de Paris

media

  • LVMH owns three important media: the daily financial newspaper Les Échos (2007), the weekly Investir (1993) and the daily Le Parisien (2015), as well as the special interest broadcaster Radio Classique (2005).

Other activities

  • Royal Van Lent (Feadship) , Princess Yachts International , Jardin d'Acclimatation , Cova , Nowness (online magazine as the successor to the online shop eluxury.com, which was discontinued in 2009 ), La Samaritaine (2001), Connaissance des Arts (2000), Cheval Blanc Hotels , Classica , Arléa (2004)
  • Belmond (2018), operator of luxury trains such as the Royal Scotsman or the Venice Simplon-Orient-Express

The company's oldest brand is the Château d'Yquem winery , whose history dates back to 1593. The most valuable brand is Louis Vuitton , the value of which was estimated at 20.3 billion euros in 2007.

Luxury goods industry

While the luxury goods manufacturers were long-established family businesses, today they are mostly part of international corporations, see competition below. Outwardly, the brands are presented independently, but internally, suppliers and licensees are divided to save costs. The most profitable and profitable field is the licensing business with fragrances and cosmetics, leather goods, glasses frames, watches and jewelry, since only a few wealthy customers can afford the actual fashion.

Important growth markets for luxury goods are Russia, China, India, Japan and Korea.

Competing companies

Web links

Commons : Moët Hennessy Louis Vuitton  - Collection of pictures, videos and audio files

Individual evidence

  1. ↑ a b In: lvmh-static.com. Retrieved June 6, 2020 .
  2. ↑ Annual Report 2018. In: lvmh-static.com. Retrieved January 25, 2020 .
  3. ↑ Profits at their finest . In: Die Zeit , No. 50/1994, page 33
  4. ↑ a b Our history , diageo.com
  5. ↑ a b c d Lvmh Moët Hennessy Louis Vuitton Sa , referenceforbusiness.com
  6. ↑ a b LVMH: Luxury has its price ( Memento from August 9, 2009 in the Internet Archive ) ,wirtschaftsblatt.at, September 11, 1997
  7. ↑ Hermès founds family holding ( Memento from January 15, 2013 in the Internet Archive ) ,wirtschaftsblatt.at, December 15, 2012
  8. ↑ Louis Vuitton adorns himself with Bulgari , manager-magazin.de, March 7, 2011
  9. ↑ LVMH wants majority of Kashmir specialists , t-online.de, July 8, 2013
  10. ↑ Case manufacturer: Rimowa is taken over by luxury company LVMH. In: Der Spiegel Online. Retrieved October 4, 2016 .
  11. ^ LVMH: RIMOWA, global leader of high quality luggage, joins the LVMH Group. (No longer available online.) Formerly in the original ; Retrieved April 2, 2016 .  ( Page no longer available , search in web archives )@1@ 2Template: Dead Link / www.lvmh.com
  12. ↑ Elizabeth Paton, New York, USA: Another Arnault Takes Charge. In: The New York Times. Retrieved April 2, 2016 .
  13. ↑ a b Billion takeover from US jeweler: Louis Vuitton grabs Tiffany . In: Spiegel Online . November 25, 2019 ( spiegel.de [accessed November 25, 2019]).
  14. ↑ LVMH website (as of December 2015), accessed on December 7, 2016
  15. ^ A b Edward J. Phillips (…) Donates $ 1 Million to Multiple Myeloma Research Consortium. ( Memento of October 8, 2008 in the Internet Archive ) themmrc.org, January 27, 2005
  16. ^ A b Millennium Acquires Belvedere Trademark in The US findarticles.com, June 29, 2007
  17. ↑ Strong Tango , weinwelt.at
  18. ^ Napa Valley Stunner - Famed Winery Sold. sfgate.com, August 1, 2007
  19. ↑ a b Cape Mentelle . thewinedoctor.com, May 19, 2007
  20. ↑ Argentinian Economy ( Memento of October 8, 2007 in the Internet Archive ) (PDF) Argentinisches Tageblatt . August 23, 2003
  21. ^ International briefs; Moet Hennessy to Buy Celine Fashion House. In: The New York Times , March 22, 1996
  22. ↑ a b c d e f LVMH Companies and brands ( Memento of the original from October 8, 2008 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. lvmh.com @1@ 2Template: Webachiv / IABot / www.lvmh.com
  23. ↑ LVMH Adds Fashion House Emilio Pucci To Its Empire. In: International Herald Tribune . February 18, 2000
  24. ↑ Loro Piana: LVMH appoints Antoine Arnault as president. ( Memento of December 11, 2013 in the Internet Archive ) Europolitan , December 9, 2013
  25. ^ LVMH Makes a Two-Part Offer for Donna Karan nytimes.com, December 19, 2000
  26. ^ LVMH Completes Donna Karan Deal. nytimes.com, Nov. 28, 2001
  27. ↑ Donna Karan gets new owner. handelsblatt.com, July 26, 2016
  28. ↑ Houses> Fashion Leather goods> Moynat LVMH.com, accessed October 11, 2017
  29. ↑ Why Relaunch Old Fashion Houses? businessoffashion.com, March 21, 2012
  30. ^ LVMH Acquires Controlling Stake in Benefit Cosmetic. ( Memento of July 8, 2012 in the web archive archive.today ) findarticles.com, September 14, 1999
  31. ^ LVMH Acquires American Cosmetics Company Fresh. findarticles.com, September 25, 2000
  32. ↑ The history of Hublot Geneve  ( page no longer available , search in web archives ) (PDF), 2008@1@ 2Template: Dead Link / www.hublot.com
  33. ^ Rupert Neate: Venice Simplon Orient-Express sold to owner of Christian Dior and Louis Vuitton. In: The Guardian . December 14, 2018
  34. ↑ Best Global Brands: 2007 Rankings . ( Memento of September 22, 2008 in the Internet Archive ) interbrand.com