2023 was a record year for LVMH Moët Hennessy Louis Vuitton and its CEO Bernard Arnault, the world’s richest man.
According to LVMH’s annual financial report, which was released publicly last week, revenue topped €86.2 billion for the leading luxury goods group last year, equivalent to a 13% increase year-on-year from 2022, while profit from recurring operations rose by 8% to €22.8 billion.
All business groups owned and operated by the vast French conglomerate reported “strong organic revenue growth”, according to the annual report, with the exception of its wines and spirits sector, which noted a 4% contraction in revenue.
LVMH’s markets in Europe, Japan and the rest of Asia performed particularly well, achieving “double-digit organic growth”, while it was the fashion and leather goods business group that generated the biggest rise in revenue – 14% – outside of the Selective Retailing grouping.
The report makes specific reference to the “remarkable performance” displayed by brands such as Louis Vuitton, Christian Dior, Celine, Fendi, Loro Piana, Loewe and Marc Jacobs, which “gained market share worldwide and achieved record levels of revenue and profits”.
Another special mention was reserved for Dior’s Sauvage, famously fronted by Johnny Depp, and its “ongoing global success” as the world’s best-selling fragrance in 2023, as well as the “robust growth in jewellery and powerful creative momentum” in the watches and jewellery branch of LVMH that includes names such as Tiffany, Bulgari and TAG Heuer.
Sephora, which confirmed its position “as world leader in beauty retail” in 2023, was also noted for its “exceptional performance” and contribution to the 25% rise in revenue for the Selective Retailing sector..
“Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,” said Chairman and CEO of LVMH Bernard Arnault in an official statement that accompanied the report. “Our growth strategy, based on the complementary nature of our businesses, as well as their geographic diversity, encourages innovation, high-quality design and retail excellence, and adds a cultural and historical dimension thanks to the heritage of our Maisons.”
LVMH: France and then the rest of the world
LVMH is the world’s leading luxury goods group and is France’s largest private sector employer. The Group had more than 213,000 employees worldwide on its books last year, including nearly 40,000 in France alone. Another 3,500 positions at various LVMH brands are set to be created in France by the end of 2024.
LVMH invests over €1 billion in France each year and roughly half of the corporate tax paid out by the Group during 2023 – a sum of more than €6 billion – goes into French coffers.
“[2024] promises to be an inspiring, exceptional year for us all, featuring our partnership with the Paris 2024 Olympic and Paralympic Games, whose core values of passion, inclusion and surpassing oneself are shared by our Group,” Arnault’s statement continues. “For LVMH, it provides a new opportunity to reinforce our global leadership position in luxury goods and promote France’s reputation for excellence around the world.”
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Photo source: Clarisse Croset, Unsplash