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LVMH Moët Hennessy Louis Vuitton SA

LVMH Moët Hennessy Louis Vuitton SA

Sector: Women's Misses' And Juniors' Dresses Region: France


: | OTC Markets: LVMUY | XETRA: MOH | Milan Stock Exchange: LVMH | OTC Markets: LVMHF | Euronext Paris: MC


LVMH Moët Hennessy Louis Vuitton SA is engaged in the manufacture of luxury goods. It operates through the following segments: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, Selective Retailing, and Other Activities. The Wines and Spirits segment produces and sells high quality champagne wines and sparkling wines. It also distributes vodka and white liquor. The Fashion and Leather Goods segment engages in the manufacture of luggage items, bags, accessories, shoes, and clothes. The Perfumes and Cosmetics segment engages in the production and distribution of make-up, perfume, and skin care products. The Watches and Jewelry segment manufactures luxury watches and accessories form men and women. It specializes in the field of chronographs and ultimate precision. The Selective Retailing segment is organized to promote an environment that is appropriate to the image and status of the luxury brands. It engages in the sale of luxury products to international travelers and on board cruise ships. It also manages beauty stores that combine direct access and customer assistance to customers. The Other Activities segment includes media division. It publishes newspapers and magazines, manages business and financial websites, and holds radio stations. It also engages in the real estate industry and builds luxury yachts. The company was founded on January 1, 1923 and is headquartered in Paris, France.

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LVMH - Wiki Article

LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate, headquartered in Paris. The company was formed by the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer. It controls around 60 subsidiaries that each manage a small number of prestigious brands. The subsidiaries are often managed independently. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.
Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.36% of its shares, and 59.01% of its voting rights. Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH. Arnault's successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus, the French conglomerate Kering (formerly named PPR) and the Swiss-based Richemont have also created extended portfolios of luxury brands.
Corporate structure
LVMH is based in 30 avenue Hoche in the 8th arrondissement, Paris, France. The company is listed on the Euronext Paris exchange, and is a constituent of the CAC 40 index. As of 2010, the group had revenues of €20.3 billion with a net income of just over €3 billion. The group currently employs more than 83,000 people. 30% of LVMH's staff work in France. LVMH operates over 2,400 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).
Shareholders
At the end of 2010, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group's control amounted to 47.64% of LVMH's stock (with 42.36% held through Christian Dior S.A. and 5.28% held directly) and 63.66% of its voting rights (59.01% by Dior and 4.65% directly). A further 2.43% of shares were declared as treasury stock, with the remainder being free float. LVMH hold 66% of the drinks division, Moët Hennessy, with the remaining 34% held by Wong Yuchin J.P.
Subsidiaries
A partial list including some of LVMH's most well known brands and subsidiaries: On March 7, 2011, LVMH announced the acquisition of the 50.4% family-owned shares of the Italian jeweller Bulgari and the intention to make a tender offer for the rest (publicly owned). The transaction is about $5.2 billion.
On March 7, 2013, National Business Daily reported that mid-priced clothing brand QDA will open stores with the assistance of LVMH's private equity LCapitalAsia and the Chinese apparel company Xin Hee Co., Ltd. in Beijing. In 2011, LVMH invested $640 million in establishing LCapitalAsia. LVMH sales "decreased by about 10 percent from in 2011" in China and LVMH has stopped "opening stores in second and third-tier cities in mainland China". Xue Shengwen, senior researcher at ChinaVenture, said that the developing trend of the market is to take advantage of more acceptable prices.
Patronage
LVMH is a major patron of art in France. The group supported about ten exhibitions as "Le grand monde d'Andy Warhol" and "Picasso et les maîtres" at le Grand Palais in Paris. LVMH also endorsed the patronage of "l'atelier d'Alberto Giacometti" and "Yves Klein" at Centre Georges Pompidou. In addition, LVMH foundation created the "young creators LVMH award", an international competition opened to French and international beaux-arts students. Each year, six grants are allocated to the winners.
The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia have used the instruments.

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Executives

Bernard Arnault, Chairman and Chief Executive Officer
Bernard Arnault is Chairman and CEO of LVMH Moët Hennessy - Louis Vuitton, the world’s leading luxury products group.
Born to an industrial family in Roubaix, France on March 5, 1949, Mr. Arnault attended the Roubaix lycée and the Faidherbe lycée in Lille. He then went on to study at the Ecole Polytechnique, graduating in 1971.
He began his professional career that year as an engineer with the Ferret-Savinel construction company and successively was promoted to various executive management positions before becoming Chairman in 1978.
Mr. Arnault remained there until 1984, when he undertook the reorganization of the Financière Agache holding company. He returned the group to profitability as he embarked upon a strategy of developing the world’s leading luxury products company. In the process, he reinvigorated Christian Dior as the cornerstone of the new organization.
In 1989, Mr. Arnault accomplished his objective of creating the world’s leading luxury products group when he assumed control of LVMH Moët Hennessy - Louis Vuitton, vowing to assure French luxury goods brand leadership worldwide. Mr. Arnault has been Chairman and CEO of the company ever since.
Mr. Arnault is also President of the Board of Directors of Groupe Arnault S.A. (his family holding company).
Mr. Arnault is married and has five children. He was appointed a Commander of the Legion of Honour for his services to the French nation and he is Commander of the Order of Arts and Letters.
Antonio Belloni, Group Managing Director
Antonio Belloni was born in Italy in 1954.
After earning a degree in economics from the University of Pavia (Italy), he joined Procter & Gamble in 1978. He held a series of positions of increasing responsibility in the United States, Greece, Belgium and Switzerland before being appointed Chairman of Procter & Gamble Europe in 1999.
He joined LVMH in 2001 with responsibility for strategic and operational management of Group companies. He is a member of the Board of Directors of LVMH and Chairman of the Executive Committee.
Antonio Belloni is also a member of the Colipa Europe (European Cosmetics Association) Chairmen’s Committee.
Jean-Jacques Guiony, Chief Financial Officer
Jean-Jacques Guiony was born in France in 1961.
After graduating from HEC business school in 1984, he began his career in 1985 as a Research Analyst with Banque Nationale de Paris in Paris and then with Merrill Lynch in 1988 in London. In 1990 he joined the Mergers & Acquisitions department of Lazard Frères, becoming a Partner in 1997 and then Head of Mergers & Acquisitions in 2000.
He joined LVMH in 2003 as Deputy Finance Director before becoming Chief Financial Officer in 2004. He is also Chairman and Chief Executive Officer of La Samaritaine since 2010. Jean-Jacques Guiony is a member of the LVMH Executive Committee.
He is a Chevalier in the French Legion of Honor.

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