LVMH is the world's leading brand in the luxury sector. It is based in Paris and possesses more than 60 sub companies which include Louis Vuitton, Fendi, Christian Dior perfumes, Guerlain. Each company functions more or less autonomously. These companies operate in five major activities that represent the five business units of the group:
Wines and Spirits
Fashion and Leather Goods
Cosmetics
Watches and Jewellery
Selective Retailing
With these activities, LVMH is present in 50 countries all over the world through 2423 shops and 77, 000 employees. The turnover of the firm in 2009 was €17,053 billion and its net result was €1,973 billion. According to estimates, LVMH draws 80% of its profits from Louis Vuitton.
[...] The following scheme shows you the proportion between each segment (in % of sales): LVMH among its market LVMH is the world leader for luxury products and has a consolidated turnover of 17053 million Euros, which represents 11% of the whole market turnover. Its main competitors, in all segments include: Richemont billion euros) Estée Lauder billion euros) Shiseido billion euros) L'Oreal luxury products billion euros) Ralph Lauren billion euros) We have to mention that the top ten companies on this market are the same, since Segments exploited by LVMH 1 Fashion and leather goods Value 6.3 billion Euros Share of LVMH's turnover 37% Retail stores among the world 1164 Main brands in the group Louis Vuitton, Céline, Fendi, Loewe, Bertuli, Marc Jacobs This sector is the main activity of LVMH. [...]
[...] In this geographical context, LVMH occupied the second rank just after Richemond. Those investments led to a 10% increase in the financial debt Working capital management During the year 2009, we saw an improvement of the working capital of LVMH. They set up some rules and new directives to better manage it. The first result we can see is the management of stock that generated a resource in treasury of 69 million Euros instead of -826 million in the previous year. [...]
[...] Moreover, the implementation of DFS stores in American airports (JFK, San Francisco, Honolulu, Los Angeles) increased its sales tremendously Wine and spirits Value 2.8 billion Euros Share of LVMH's turnover 16% Retail stores among the world Main brands in the group Moët et Chandon, Dom Perignon, Veuve Clicquot In 2009, LVMH sold 151 millions of bottles. It represented a decrease of 12% in the turnover segment. This was due to a massive destocking from distributors during the first semester of 2009. [...]
[...] We can say that LVMH was and remains a strong leader in its market even after going through the financial crisis. In an internal context, they practice a politic of continuous development and improvement that allows them to strengthen financially as was the case for the working capital. If we take a look at the following scheme, we can highlight that dividends paid per share are constantly growing until 2008 and remained stable in 2009. The breakeven of 144% will help us to convince you to invest in our group. [...]
[...] It represents 22% of sales points more than the previous year Perfumes and cosmetics Value 2.7 billion Euros Share of LVMH's turnover 15% Retail stores among the world Main brands in the group Christian Dior, Guerlain LVMH contributes to the main share of its sales in Europe but China and Russia are key areas in development for those products. The main competitors of the group in this segment are Estée Lauder, Shiseido, L'Oreal luxury products and Clarins. LVMH is ranked fourth in the global market. [...]
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