Luxury goods giant LVMH Moët Hennessy Louis Vuitton, commonly known as LVMHhas grown into a $500 billion powerhouse conglomerate with 75 well-known brands, or “maisons,” rooted in six different industries – and has no plans to slow down.
Company filing Revenue was 79.2 billion euros, or about 86.3 billion U.S. dollars, Last year, revenue was up 23% over 2021. Over the past two decades, it has more than quintupled the number of stores in 81 countries and employs more than 196,000 people worldwide.
Its shares hit an all-time high of more than $199 a share in April, making the Paris-based company the first European company to be worth more than $500 billion.
some experts have Long known as a “recession-proof” company, Able to sustain itself through a downturn and have a product that uniquely appreciates in value over time.
At the helm of the giant ship is LVMH CEO Bernard Arnault, the richest man in the world according to the Forbes Real-Time Billionaires List index.
Some say Arnault’s strength lies in identifying companies with longevity. His most recent acquisition was Tiffany & Co. in 2021 for $15.8 billion.
“When he talks about potential acquisitions, he’s not looking for a brand that’s hot right now. He’s looking for a brand that he thinks will exist in 100 years,” said Anish Melwani, chairman and chief executive of LVMH North America.
Oliver Chen, managing director of TD Cowen, said that with Arnault, LVMH played the “long game”. This keeps the company’s brand in good shape in terms of integrity, recognition and relevance, he said.
Although managed by LVMH, each house has creative control over its own brand, with its own top management and mission.
“Other companies just put a bunch of brands together and run it with one person, and what you lose in efficiency, what we get is real accountability,” Melwani said.
This is reflected in LVMH’s ability to consistently offer products based on its Maison’s heritage, in line with current trends and culture. LVMH has always partnered with celebrities, style icons and influencers to remain relevant to the young luxury crowd.
Melwani said the company has focused on expanding its brick-and-mortar stores in the wake of the Covid-19 pandemic, which was required due to the extraordinary growth of LVMH’s e-commerce and digital channels.
Remaining relevant is key to enduring luxury – and LVMH’s strategy is to build a brand that not only endures, but continues to excel.
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Correction: This story has been updated to correct the spelling of LVMH in the title.