LVMH Moët Hennessy Louis Vuitton S.A. (LVMH) is one of the world's largest luxury goods conglomerates, based in Paris, France. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. These daughter companies are, to a large extent, run autonomously. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group.

The group currently employs 77,000 people. 30% of LVMH's staff work in France. LVMH operates over 2,300 stores worldwide. Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.

The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies.

Capital structure:
Arnault Group 47.4%
French institutional investors 16.2%
Treasury stock 3.4%
Foreign institutional investors 27.4%
Individuals: 5.6%

In accordance with the 2008 Annual report, the Group’s revenue reached 17,193 M Euros, Profit from recurring operations amounted to 3,628 M euros, net profit upped to 2,318 M euros.

Highlights of 2008

Wines and spirits:
LVMH expanded its portfolio of brands. Early in 2008, Moët Hennessy acquired the Spanish wine
company Numanthia Termes, which develops one of the best wines in Spain, in the heart of the Toro
appellation. In December, Moët Hennessy announced the acquisition of the Montaudon Champagne
House, a transaction that will in particular expand its supplies.
For the first time in the history of the Hennessy brand, China ranked first among its markets.
Creation of Krug Clos d’Ambonnay, a new vintage from a unique vineyard.
Glenmorangie focused its strategy on its key brands Glenmorangie and Ardbeg and launched Glenmorangie Signet.
Moët Hennessy adopted a new Code of Conduct setting out clearly the ethical principles which govern the various aspects of the company’s business. A new grape pressing centre opened in Mailly-Champagne. It is designed and used by the different brands according to a High
Environmental Quality standard

Fashion and leather goods:
China became the second largest customer base in the world for Louis Vuitton.
Louis Vuitton established its presence in four new countries: Finland, Romania, Qatar and Bahrain.
Fendi celebrated the 10th anniversary of its Baguette model and opened a flagship store on Avenue Montaigne in Paris.
Two new designers joined the Group’s Houses: Phoebe Philo at Celine and Peter Dundas at Pucci.
Louis Vuitton earned ISO 14001 certification (the international standard for environmental management systems) for its Pont-Neuf headquarters in Paris. This was the third Louis Vuitton entity to earn this certification following the Barbera workshop in Spain in 2003 and the Cergy-Pontoise warehouse in 2007.

Perfumes & Cosmetics
Parfums Christian Dior demonstrated its creativity in all product categories. The main successes for the year were Dior Homme Sport, Escale à Portofino, J’adore L’absolu, the mascara Diorshow Iconic, the lipstick Dior Addict High Shine, and the skincare Capture Totale Haute Nutrition.
Guerlain celebrated 180 years with the launch of the new men's fragrance Guerlain Homme, and the Le 2 mascara. A new icon, Natalia Vodianova, now personifies Shalimar for her first collaboration with the brand.
Givenchy launched the perfume Play, represented by Justin Timberlake, and the mascara Phenomen’Eye and Soin Noir.
Parfums Kenzo rolled out the Kenzo-Power perfume and Belle de Jour in its KenzoKi skincare line.

Watches & Jewelry
LVMH acquired Hublot Genève, a young high-end watchmaker with steady and profitable growth.
TAG Heuer received two highly-prized awards and joined
the very selective circle of “la Fondation de la Haute Horlogerie”.
TAG Heuer launched its first line of Meridiist cell phones in collaboration with Modelabs.
Zenith sold the first models of Tourbillon Zero G designed by the Manufacture.
Sophie Marceau became the face of Chaumet, symbolizing the brand in its new advertising campaign.
Montres Dior became a joint-venture between LVMH and Dior Couture.
Fred successfully relaunched its mythical Force 10 line and renovated its flagship store on the Place Vendôme in Paris.
LVMH Watches and Jewelry strengthened its control over its distribution in China and
India.
LVMH Watches and Jewelry endorsed the actions led by the CRPJ, “Council for Responsible Jewelry Practices”, throughout its gold and diamond channels and initiated SA8000 social audits on suppliers.

Short History:
1743: Claude Moët and his son, Claude-Louis, open Moët et Cie to sell wine.
1792: Claude Moët dies and leaves company to grandson Jean-Rémy.
1832: Jean-Rémy hands over control of the company to his son and son-in-law; business is renamed Moët et Chandon.
1854: Louis Vuitton opens his own packing and trunkmaking business in Paris.
1885: Louis Vuitton expands internationally by opening a store in London.
1969: Louis Vuitton enters the Asian market with a store in Tokyo.
1971: Moët et Chandon merges with Jas. Hennessy & Company, the largest cognac producer in France, and is renamed Moët-Hennessy.
1984: Louis Vuitton goes public.
1987: Louis Vuitton and Moët-Hennessy merge in a $4 billion deal.

Official website: www.lvmh.com