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L.V.M.H. Moët Hennessy-Louis Vuitton. Presentation of LVMH. 5 activities. Wines and spirits (16%) fashion and leather goods (22%) perfumes and cosmetics (25%) selective distribution (35%) watch and jewellery(2%). The history. 1971: creation of Moët Hennessy 1987: creation of LVMH
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L.V.M.H. Moët Hennessy-Louis Vuitton LVMH Moët Hennessy-Louis Vuitton
Presentation of LVMH LVMH Moët Hennessy-Louis Vuitton
5 activities • Wines and spirits (16%) • fashion and leather goods (22%) • perfumes and cosmetics (25%) • selective distribution (35%) • watch and jewellery(2%) LVMH Moët Hennessy-Louis Vuitton
The history • 1971: creation of Moët Hennessy • 1987: creation of LVMH • 1988: acquisition of Givenchy • 1991: acquisition of Pommery • 1993: acquisition of Christian Lacroix and Kenzo • … • 1999: acquisition ofKrug, Château d’Yquem, Bliss, Hard Candy, Chaumet, TAG Heuer... LVMH Moët Hennessy-Louis Vuitton
The history • 1743: Moët & Chandon • 1765: Hennessy • 1780: Chaumet • 1828: Guerlain • 1852: Le Bon Marché • 1854: Louis Vuitton • 1946: Christian Dior • 1996: Bliss LVMH Moët Hennessy-Louis Vuitton
The LVMH’s values • Creativity and innovation • Image of quality • Dynamism and ambition LVMH Moët Hennessy-Louis Vuitton
Current topics • Sales up 16 % • Operating income up 22 % • Net income up 59 % • Strong recovery in selective retailing and Asia LVMH Moët Hennessy-Louis Vuitton
Innovation : a key driver • High sucess of new products • Several new launching • New distribution concept LVMH Moët Hennessy-Louis Vuitton
Rebalancing of geographical mix 1998 1999 LVMH Moët Hennessy-Louis Vuitton
A stronger organization linked to a solid financial position • A new management structure • A strong balance sheet LVMH Moët Hennessy-Louis Vuitton
Financial data (In Euro millions)19941995199619971998 Net sales 4 263 4 539 4 747 7 322 6 936 Gross margin 2 747 2 991 3 123 4 572 4 396 Income from operations 1 065 1 110 1 070 1 268 1 184 Net income from operations 603 639 679 742 525 Cash flow from operations 772 904 851 1 163 571 Industrial investments 164 153 160 310 408 Stockholder's equity 4 625 4 725 5 288 6 178 6 316 LVMH Moët Hennessy-Louis Vuitton
Consolidated balance sheet LVMH Moët Hennessy-Louis Vuitton
Gearing LVMH Moët Hennessy-Louis Vuitton
Bibliography • www.lvmh.fr • Louis Bergeron, (1998), Les industries du Luxe en France, Paris, Editions Odile Jacob. • Roland Barthes, (1967), Systèmes de mode, Paris, Le Seuil. LVMH Moët Hennessy-Louis Vuitton