Louis Vuitton and Moët Hennessy (LVMH) Financial Performance from Time to Time

Louis Vuitton and Moët Hennessy (LVMH) Financial Performance from Time to Time- Louis Vuitton   and Moët Hennessy commonly known as “LVMH” is the world’s leading luxury goods group. Many People know this company which produces the luxury products with miscellaneous brands. By the way, Louis Vuitton (LV), Tag Heuer, Tiffany & Co, Hublot, Christian Dior are some of the popular fashion brands of LMVH.  As of 2023, There are more than 70 brands that this groups have owned. Many high-class people still search and buy the products of LVMH.

 Louis Vuitton and Moët Hennessy (LVMH) History and Business Development

Historically, this luxury business group was started on 3 June 1987 with the initiative of Bernard Arnault, Alain Chevalier, and Henry Racamier. Along with business development, this group has expanded its business by doing some acquisitions, namely of 50 % stake of Bulgari (Italian jeweller) in 2011, 55% of Château d’Esclan’s stake in 2019 and others. To date, this group has managed some diversified business into Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing.

In Wine & Spirit, this group has some brands, namely Ao Yun, Ardbeg, Belvedere, Bodega Numanthia, Cape Mentelle, Chandon, Château d’Esclans, Château Cheval Blanc, Château d’Yquem, Cheval des Andes, Clos des Lambrays, Cloudy Bay, Colgin Cellars, Dom Pérignon, Glenmorangie, Hennessy, Krug, Mercier, Moët & Chandon, Newton Vineyard, Ruinart, Terrazas de los Andes, Veuve Clicquot, Volcan de mi Tierra, and Woodinville. Meanwhile, in the fashion and Leathers goods, LMVH has some brands, namely Berluti, Birkenstock, Celine, Christian Dior, Emilio Pucci, Fendi, Givenchy, JW Anderson, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Off-White, Patou, Phoebe Philo, Rimowa, and Stella McCartney.

In perfumes and cosmetics products, LVMH has some brands including Acqua di Parma, Benefit Cosmetics, BITE Beauty, Cha Ling, Fenty Beauty by Rihanna, Fresh Beauty, Parfums Givenchy, Guerlain, Kenzo Parfums, KVD Vegan Beauty, Maison Francis Kurkdjian, Make Up for Ever, Marc Jacobs Beauty, Officine Universelle Buly, Ole Henriksen, Parfums Christian Dior, Perfumes Loewe, and Sephora.  In Watchs and Jewelry, LVMH has some brands including Bulgari, Chaumet, Daniel Roth, Fred, Hublot, Gerald Genta, Repossi, TAG Heuer, Tiffany & Co., and Zenith.

 

Furthermore, in selective retailing, LVMH has some facilities and products including DFS, La Grande Epicerie, La Samaritaine, Le Bon Marché, and Starboard Cruise Services. Moreover, in other activities business, LVMH has some properties and facilities including Belmond, Maisons Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d’Acclimatation, Le Parisien, Les Echos, Radio Classique, and Royal Van Lent.

As of 2023, based on the annual report, LVMH group has 6,097 stores with 213,268 of employees.  Its group also has 110 production sites in France. Based on the business contributions, The Fashion & Leather goods still become the backbone of the company that contributes 49% of revenue or €42 billion, Selective retailing and other activities contributes 21% or €17.8 billion, Watches & Jewelry contributes 13% or €10.9 billion, and the others are Perfumes & Cosmetics (9%) or €8.2 billion and Wine & Spirits (8%) or €6.6 billion. Based on the marketing areas of all products, The revenue of products came from several regions. These regions include Asia (except Japan) with contributing around 31% of revenue, followed by the United States with 25% of revenue, Europe with 17%, France with 8%, and Japan with 7%.

 

Based on the company’s ownership according to Annual Report, 2023, LVMH was owned by some groups.  Arnault Family Group owns 48.2% of all the stake, followed by Foreign Institutional Investors with 38.2 %, French Institutional Investors with 7.3%, and Individuals ownership with 5.9%. Bernard Arnault still becomes the key person of this group with his role as Chairman and Chief Executive Officer until now. With his ownership in LVMH, Bernard Arnault became one of the richest people in the World with Real Time Net Worth $235.7 Billion based on Forbes.

Louis Vuitton and Moët Hennessy (LVMH) Business Conditions and Performances

Years	Total Revenue	Net Profit
	(EUR millions)	(EUR millions)
2023	86,153	15,174
2022	79,184	14,084
2021	64,215	12,036
2020	44,651	4,702
2019	53,670	7,171
2018	46,826	6,354
2017	42,636	5,365
2016	37,600	3,981
2015	35,664	3,573
2014	30,638	5,648
2013	29,149	3,436
2012	28,103	3,424
2011	23,659	3,065
2010	20,320	3,319
2009	17,053	1,973
2008	17,193	2,318
Source: Louis Vuitton and Moët Hennessy (LVMH) Annual Report, 2010-2023

 

As a one of the biggest companies in the world, LVMH has shown some incredible financial condition and performance from time to time. The positive performance from time to time always can be seen in their annual report.  In this article, we analyze the financial condition and performance of LVMH based on annual report in 2008-2023.  All of the data was obtained from Consolidated Balance sheet and Income statements of LVMH from 2008 to 2023.

The Assets, Liabilities, Equities of The Louis Vuitton and Moët Hennessy (LVMH)

Years	Total Assets	Total Liabilities	Equities
	(EUR millions)	(EUR millions)	(EUR millions)
2023	143,694	80,993	62,701
2022	134,646	78,042	56,604
2021	125,311	76,402	48,909
2020	108,671	69,842	38,829
2019	96,507	58,142	38,365
2018	74,300	40,343	33,957
2017	69,755	39,378	30,377
2016	59,622	31,719	27,903
2015	57,601	31,802	25,799
2014	53,362	30,359	23,003
2013	55,674	27,951	27,723
2012	49,998	24,490	25,508
2011	47,113	23,687	23,426
2010	37,164	18,960	18,204
2009	32,106	17,321	14,785
2008	31,483	17,690	13,793
Source: Louis Vuitton and Moët Hennessy (LVMH) Annual Report, 2010-2023

The data was analyzed by assets, liabilities, and equities. Commonly, assets are the physical and non-physical properties that a company has owned while doing the business. In addition, Liabilities is the financial obligation to other parties that company must pay off. Equities is the difference in value between assets and liabilities.  In 2023, the LVMH has assets around € 143,694 million with liabilities around € 80,993 million, and Equities with € 62,701 million. These total assets condition has grown more than 3 times if compared with conditions in 2008. In the year 2008, the assets are just € 31 million, liabilities around € 17 million, and equities around € 13 million.

Meanwhile, based on the business performance from time to time. LVMH has grown its business. The revenue and net profit always show the positive performance. Financially, in 2023, the LVMH can generate revenue around €44,651 million and net profit around €4,702 million. This performance of 2023 has increased more than 2-fold if compared to the business performance in 2008. In 2008, the revenue of LVMH is around EUR 17,193 million and EUR 2,318 million. Overall, the Revenue and Net Profits of LVMH in 2022 is the highest financial achievement than business performance in the year before.

The business performance in 2019–2023 shows that business of LVMH was not affected by global recession. In the pandemic of Covid-19 and economic recession, LVMH has grown gradually. It was different from other companies that experienced the slowdown performance. Maybe, it’s a sign that people still buy luxury goods in recession conditions.  Thank You, Hopefully, it can be useful articles.

Bibliography of Louis Vuitton and Moët Hennessy (LVMH) Financial Performance From Time to Time

LVMH. 2024. Annual Report 2008-2023. Accessed via https://www.lvmh.com/investors/  on June 19th, 2024.

Forbes.2023. Bernard Arnault & family. Accessed via https://www.forbes.com/profile/bernard-arnault/?sh=b5db4b966fa4  on June 19th, 2024.

Wikipedia. 2023. LVMH. Accessed via https://en.wikipedia.org/wiki/LVMH  on April 19th, 2024.