RAPPORT ANNUEL 2019
2019 A N NUA L R EPORT
La passion
Passionate
créative
about
creativity
Passionate
about creativity
T H E LV M H
S P I R I T
Louis Vuitton and Moët Hennessy merged in 1987, creating the
LVMH Group. In 1989, Bernard Arnault became the Group’s
majority shareholder, and Chairman and Chief Executive Officer,
with a clear vision: to make LVMH the world leader in luxury.
Today, the LVMH Group comprises 75 exceptional Maisons, each
of which creates products that embody unique craftsmanship,
carefully preserved heritage and dynamic engagement with
modernity. Through their creations the Maisons are the ambas-
sadors of a distinctive, refined art de vivre.
LVMH nurtures a family spirit underpinned by an unwavering long-
term vision. The Group’s vocation is to ensure the development of
each of its Maisons while respecting their identity and their auton-
omy, by providing all the resources they need to create, produce
and distribute their products and services through carefully
selected channels.
All of LVMH’s stakeholders share three core values. These values
drive our Maisons’ performance and ensure their longevity, while
keeping them attuned to the spirit of the times and connected
to society. The Group has made sustainable development a stra-
tegic priority since its creation. Today, that commitment provides
a clear answer to the issue of the ethical responsibility of busi-
nesses in general, and to the distinctive role a group such as
LVMH should play in France and around the world.
Our philosophy: Passionate about creativity
LV M H
VA L U E S
Innovation and creativity
Because our future success will come
from the desire that our new products elicit while
respecting the roots of our Maisons.
Excellence of products
and service
Because we embody what is most noble and
quality-endowed in the artisan world.
Entrepreneurship
Because this is the key to our ability to react and
our motivation to manage our businesses as startups.
LV M H : A D E E P LY
C O M M I T T E D G R O U P
Our Group and Maisons put heart and soul into everything
they do. Each of our initiatives is meaningful
and reflects our commitment to the environment,
the community and diversity.
02 • 03
La Samaritaine
T H E LV M H G R O U P
Chairman’s message
Interview with the Group Managing Director
Governance and organization
Our Maisons and business groups
Performance and responsibility
Strategy and key figures
Commitments in 2019
Talent
Environment
Corporate philanthropy
Ethics and responsible partnerships
B U S I N E S S G R O U P I N S I G H T S
Wines & Spirits
Fashion & Leather Goods
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
LV M H S T O R I E S
P E R F O R M A N C E M E A S U R E S
Stock market performance measures
Financial performance measures
Non-financial performance measures
06
12
14
16
18
20
22
30
34
38
42
46
56
66
76
86
96
134
136
138
04 • 05
INSPIRE, ADAPT, PRESERVE
LV M H ’ S P E R F O R M A N C E R E F L E C T S
O U R E F F E C T I V E S T R A T E G Y.
P U R S U E D W I T H C O N S I S T E N C Y,
I T I N S P I R E S A N D G U I D E S O U R A C T I O N S ,
A N D K E E P S U S O N C O U R S E
F O R S U S T A I N A B L E G R O W T H D E S P I T E
E X C E P T I O N A L C I R C U M S T A N C E S .
2019 was another record year for our Group and its Maisons, with double-digit growth in
both revenue and profit. This performance reflects a well-calibrated strategy applied
consistently and effectively. But it could not have been achieved without the exceptional
appeal of our Maisons: their ability to constantly surprise and enchant our customers. By
endeavoring to always forge our own path, guided by our long-term vision, we have
reaped the rewards of ambitious choices, investments and patient developments years in
the making. This long-term commitment is what sets us apart, and allows our Maisons
and employees the time they need to fully express their potential and talent. It also drives
our ability to adapt and respond to the unprecedented crisis that the world is facing in
this early part of 2020, and underpins the powerful resilience of our Group, which will rise
to this challenge as we have always done in the past.
A YEAR OF ACCOMPLISHMENTS
In 2019, the products of our Maisons and the experiences they offer were more desirable
than ever before. This can be seen in the ongoing success of Hennessy, now the world’s
number-one premium spirits brand, and in Champagne, with the performance of our
prestige cuvées, illustrated by the popularity of Dom Pérignon’s new Plénitude 2 1998
vintage and Veuve Clicquot’s La Grande Dame, as well as the dynamism of Moët & Chan-
don exemplified by its renovation and reopening of Château de Saran, near Reims, to the
delight of its customers and partners the world over. Louis Vuitton and Christian Dior
delivered exceptional performances, boosted by inspiring runway shows, high-impact
exhibitions and prestigious collaborations, while Fendi saw strong growth – a glowing
tribute to the artistic passion of its iconic Creative Director Karl Lagerfeld, who passed
away at the beginning of the year. Other highlights included the rapid progress made by
Loewe, Rimowa and Bvlgari; Sephora’s extended lead; the growth drivers explored by
Parfums Christian Dior and Guerlain in skincare; and the remarkable resilience of DFS in
a particularly challenging context in Hong Kong, a major market for travel retail. Our
Maisons increased their production capacity, including the opening of two new leather
goods workshops at Louis Vuitton: one in Maine-et-Loire, France, and the other in Texas,
in the United States.
06 • 07
LVMH 2019 . Chairman’s message The positive momentum shown by all of our business groups was also boosted by new
tie-ups carried out in 2019. We are very proud to be joined by exceptional hotel business
Belmond. We have also forged a promising partnership with Stella McCartney, whose
long-standing commitment to sustainable, ethical fashion resonates with our values and
our vision. Lastly, we made our debut in the high-end rosé sector, with the arrival within
the Group of two renowned vineyards in the south of France.
A POTENT MIX OF COLLECTIVE TALENT
These accomplishments and achievements are due above all to our highly driven staff: a
potent mix of collective efficiency that fuels the appeal and power of our brands each and
every day. At every Maison and in every profession, the women and men of LVMH have
made all the difference, from the free rein given to creativity and initiative to their absolute
mastery of quality; constantly aspiring to offer fresh, new ideas without losing sight of our
timeless heritage, and driving forward our Maisons, their products, their designs and their
experiences. One need look no further than the new Louis Vuitton Maison in Seoul, for
which Frank Gehry designed a fantastic glass vessel echoing the Fondation Louis Vuitton
in Paris; the Maison’s New Bond Street store in London, transformed by architect Peter
Marino; and the spectacular Christian Dior pop-up store inaugurated on the Champs-
Élysées, transported as if by magic from its historic address at 30 Avenue Montaigne
during its transformation.
AN UNPRECEDENTED CRISIS
In the economic environment we face during these first few months of 2020, disrupted
by a major public health crisis, we remain focused on a long-term vision – the time frame
within which we pursue our strategy – and are continuing to concentrate our efforts on
preserving the value of our brands. In this unprecedented context, I would first like to
thank our teams around the world, who have mobilized to help caregivers and partici-
pate in the collective effort by making hydroalcoholic gel for hand sanitizers, by facilitat-
ing the movement or by producing medical masks or even by sourcing critical equipment
for hospitals. The health and safety of our employees and customers must remain our
top priority. On a global scale, the Group works closely with the teams of each of our
Maisons to provide them with all the resources they need. Thanks to everyone’s commit-
ment and the strength of its brands, the LVMH group maintains good resilience in the
face of this worldwide challenge. For several weeks, our teams have once again demon-
strated that excellence, creativity and responsiveness will allow us not only to overcome
this crisis but, above all, to emerge even stronger when it fades. Vigilant and responsive
as never before in the short term and confident for the long term, we will approach the
months ahead focused on our targets for lasting growth, firmly committed to consolidat-
ing our lead in high-quality products once again in 2020.
THE DESIRE TO MAKE A DIFFERENCE
This commitment takes many forms, reflecting the richness and diversity of our Group.
Since our launch of a pioneering environmental policy starting in 1992, we have constantly
strived and innovated to limit the impacts of our activities, preserving the natural ecosys-
tems – and even the landscapes – that are so essential to the life of our Maisons. From the
overhaul of Louis Vuitton’s global logistics operations to the groundbreaking packaging
designed for Veuve Clicquot and Ruinart, we have delivered clear improvements in envi-
ronmental performance across all our business lines. Ahead of our ambitious roadmap set
out under the LIFE program, we made new commitments last fall, in particular to promote
biodiversity and animal welfare. And because expertise plays a crucial role in this neces-
sary transition to a greener, more energy-efficient economy, we have continued to expand
our environmental knowledge base, all the way to our Board of Directors, with a firm
desire to achieve continuous improvement at every level of our Group.
Although sometimes less visible from the outside, our commitment to inclusion and
giving back to the community is just as strong. Because we cannot craft inspiring prod-
ucts and experiences without an unwavering focus on the working conditions and
opportunities available to our staff; without strict adherence to ethical practices and
traceability in our dealings with our partners; without opening our eyes to the world’s
problems. This outlook has guided a number of initiatives to support important causes,
in particular the substantial resources devoted to saving Notre-Dame de Paris Cathedral,
combating deforestation in the Amazon, and more recently, fighting the spread of the
coronavirus, supporting the Red Cross Society of China and the Hospitals of Paris-Hos-
pitals of France Foundation.
BUILDING THE FUTURE WITH YOUNGER GENERATIONS
All of these commitments and achievements converge around a final key concept: pass-
ing on the craft. At LVMH, we constantly endeavor to cultivate the expertise upon which
our Maisons have built their legacies. We honor this commitment by hiring and training
thousands of new employees each year. But also by expanding access to our expertise
and company culture through our Institut des Métiers d’Excellence, as well as programs
like DARE and La Maison des Startups to stimulate innovation. The past lives within us and
inspires us, but what motivates us is the future: the younger generations to whom we
have a duty to pass on the torch of excellence. They already have ambition: our role is to
equip them with the tools and skills they need to attain it.
For in the end, this is what LVMH stands for and what ultimately gives meaning to
everything we do. We are a family group focused on the future, united by a positive, sus-
tainable long-term vision for our company’s role in society; a young, virtuous, enthusiastic
group imbued with a powerful ideal of perfection, quality and beauty, driven by our com-
mitments and our calling to inspire dreams.
Bernard Arnault
Chairman and Chief Executive Officer
08 • 09
LVMH 2019 . Chairman’s message La Samaritaine
I N N O VA T I N G T O G O
B E Y O N D O U R
C U S T O M E R S ’ D R E A M S
ANTONIO BELLONI,
GROUP MANAGING DIRECTOR
LVMH has had another very impressive year.
Can this exceptional momentum continue?
require adaptation and innovation in the way we execute
our strategies. Difficult and unprecedented situations, like
the one we are facing today, call for considerable resil-
Year after year, we work to build the desirability of our
ience, but they can be sources of energy and new ideas.
brands over the long term. We invest in innovation to go
Backed by the dedication and agility of our teams, we are
beyond our customers’ dreams; in marketing and the dig-
confident that the positive momentum will return and
ital world to ensure that the image of our brands is ever
continue over the medium and long term.
more inspiring and attuned to diverse new trends; in
building high-performance, environmentally friendly
workshops so that our products embody sustainable
excellence; and in designing exceptional stores to enchant
What are the main trends dominating
the luxury market?
our customers. Above all, we invest in our talent including
We’re seeing some very exciting changes at the moment.
designers, craftspeople, sales associates, managers – all
There’s a growing desire in luxury for a much more per-
these professions contribute to the excellent perfor-
sonal touch. Throughout their experience with a luxury
mance of our Maisons. Lastly, while our existing brands
brand, each customer wants – and deserves – to feel val-
continue to demonstrate their strong potential, we pur-
ued and unique. Bespoke and customization are gaining
sue selective external growth, illustrated in 2019 by the
ground, but so is the desire for a relationship with our
acquisition of the Belmond hotel group. As things stand
brands whose main criteria – far from being purely
in early 2020, with the coronavirus pandemic front and
center, our top priority has been – and continues to be –
rational – are above all affective and emotional. Which
brings me to the second key point: beyond creativity and
doing whatever necessary to protect the health and
quality, our customers want meaning. They want to be on
safety of our employees. Its impact on society’s values as
the same page with our ethics and our social commit-
well as on the lifestyles and desires of our customers will
ments. From our environmental approach to how we
Louis Vuitton
promote diversity and inclusion and ensure transparent
collaborations, artistic and cultural events, and private
supply chains, our impact on society is fundamentally
salons dedicated to a personalized styling service; TAG
important to them, just as it is to our employees and all
Heuer’s design of the first luxury smartwatch; our grow-
our stakeholders. The current public health crisis will fur-
ing presence in the field of luxury experiences with the
ther reinforce these expectations. The third big trend has
expertise of Belmond, whose hotels offer unforgettable
to do with changing lifestyles: our customers are highly
stays in the world’s most inspiring locations. We also
connected, with multiple ways of staying informed and
know how to build new models from the ground up, as
sharing their opinions in the digital world.
illustrated by the success of Fenty Beauty: a powerful
What will it take to stay ahead?
concept, inclusive and highly relevant, which has amassed
an unprecedented following on Instagram. Lastly, staying
ahead also means leading by example when it comes to
Constantly improving our capacity to embrace new
improving our social and environmental impact. For
trends, enrich our customer experience and go beyond
example, in the area of responsible supply chains, an
our customers’ dreams. Imagination, experimentation
extensive program of research and collaboration with our
and constant reinvention while staying true to our Mai-
sons’ heritage, are what make our ecosystem so power-
suppliers culminated in our 2019 launch of the Ani-
mal-Based Raw Materials Sourcing Charter. On all social
ful. Take, for example, Louis Vuitton’s partnership with
and environmental fronts, we have the active support of
League of Legends, an unprecedented, fascinating initia-
the Group’s family shareholding structure, which ensures
tive; Le Bon Marché’s perpetual innovation through its
its long-term future.
12 • 13
LVMH 2019 . Interview with the Group Managing Director G O V E R N A N C E
A N D O R G A N I Z A T I O N
THE RIGHTS OF LVMH SHAREHOLDERS ARE PROTECTED
BY LAW AND THE PRINCIPLES OF CORPORATE GOVERNANCE
WHICH GOVERN THE WAY THE GROUP OPERATES.
LVMH’s Board of Directors is the strategic body of the
sis of changes in the Group’s activities and scope. The
Company that is primarily responsible for enhancing the
Committee worked primarily on internal audit; the Group’s
Company’s value and protecting its corporate interests,
internal audit policy and how the financial markets view
taking into consideration the social and environmental
the Group; and the transition to the new accounting
issues facing its business and, where applicable, the
standard, IFRS 16, from January 1, 2019.
Company’s mission statement, as laid down pursuant to
– In 2019, the Nominations & Compensation Committee
Article 1835 of the French Civil Code. It also endeavors to
issued proposals on the fixed and variable components
promote the Company’s long-term value creation, in par-
of compensation as well as benefits in kind paid to the
ticular by taking into account the social and environmen-
Chairman and Chief Executive Officer and the Group
tal issues facing its business. Its principle assignments are
Managing Director, on the performance criteria associ-
to approve the Company’s and the Group’s major strate-
ated with their variable compensation and the respective
gies and supervise their implementation; to verify the fair
weighting of each one, the granting of performance
and accurate presentation of information about the
shares to those two individuals and the requirement to
Company and the Group; to protect its corporate assets;
retain possession of a portion of any vested shares. It also
and to ensure that core business risks are fully accounted
provided opinions on the compensation, performance
for in the management of the Company. It also ensures
shares and benefits in kind granted to certain Directors
that procedures to prevent corruption and influence-
by the Company or its subsidiaries. It reviewed the state-
peddling are implemented, and that a non-discrimi-
ment of compensation paid to Directors and Advisory
nation and diversity policy is in place, notably with
Board members during fiscal year 2019, as well as the
regard to gender equality within the governing bodies.
Board of Directors’ draft report on the compensation pol-
Lastly, it acts as guarantor with respect to the rights of
icy submitted for shareholder approval. It expressed an
each of its shareholders and ensures that shareholders
opinion in favor of (i) the reappointment of Directors
fulfill all of their duties.
whose terms of office were ending in 2019, (ii) the
In fiscal year 2019, the Board of Directors approved the
appointment of a new Director and a new Advisory
annual and interim parent company and consolidated
Board member, and (iii) the reappointments of Bernard
financial statements, monitored quarterly business activ-
Arnault as Chairman of the Board of Directors and Chief
ity, and gave its opinion on the Group’s key strategic
Executive Officer, and of Antonio Belloni as Group Man-
direction and decisions, its budget, compensation of
aging Director. It also issued a favorable opinion on the
company officers, the implementation of a bonus perfor-
combined role of Chairman and Chief Executive Officer.
mance share allocation plan, and the implementation of
– In 2019, the Ethics & Sustainable Development Commit-
the share buyback authorization. Lastly, it approved the
tee gave a progress update on the Group’s compliance
plan to acquire Tiffany & Co.
program, notably in connection with the Sapin II Act and
There are three committees within the LVMH Board of
the law on the duty of care for parent companies.
Directors:
– In 2019, the Performance Audit Committee reviewed
the annual and interim parent company and consolidated
financial statements in conjunction with a detailed analy-
More information can be found in the 2019 Universal Registration Document.
EXECU TIVE COMMITTEE
Bernard Arnault
Chairman and Chief Executive Officer
Antonio Belloni
Group Managing Director
Delphine Arnault
Louis Vuitton
Nicolas Bazire
Development and Acquisitions
Pietro Beccari
Christian Dior Couture
Michael Burke
Louis Vuitton
Chantal Gaemperle
Human Resources and Synergies
Jean-Jacques Guiony
Finance
Christopher de Lapuente
Sephora and Beauty
Philippe Schaus
Wines and Spirits
Sidney Toledano
Fashion Group
Jean-Baptiste Voisin
Strategy
14 • 15
BOARD
OF DIRECTORS
Bernard Arnault
Chairman and Chief Executive Officer
Antonio Belloni
Group Managing Director
Antoine Arnault
Delphine Arnault (8)
Nicolas Bazire
Sophie Chassat (1)
Charles de Croisset (1) (6) (7)
Lead Director
Diego Della Valle (1)
Clara Gaymard (1) (5)
Iris Knobloch (1)
Marie-Josée Kravis (1) (7)
Marie-Laure
Sauty de Chalon (1) (8)
Yves-Thibault
de Silguy (1) (6) (7) (8)
Natacha Valla (1) (2)
Hubert Védrine (1) (8)
Advisory
Board Members
Yann Arthus-Bertrand
Paolo Bulgari (3)
Lord Powell of Bayswater (4)
General Secretary
Marc-Antoine Jamet
Statutory Auditors
Ernst & Young Audit
represented by Gilles Cohen
and Patrick Vincent-Genod
Mazars
represented by Isabelle Sapet
and Loïc Wallaert
(1) Independent Director.
(2) Appointment as a Director proposed
at the Shareholders’ Meeting of June 30, 2020.
(3) Until the Shareholders’ Meeting of June 30, 2020.
(4) Appointment as an Advisory Board
member proposed at the Shareholders’ Meeting
of June 30, 2020.
(5) Appointment as a Performance Audit
Committee member to replace Antoine Arnault
effective June 30, 2020.
(6) Member of the Performance Audit Committee.
(7) Member of the Nominations
& Compensation Committee.
(8) Member of the Ethics & Sustainable
Development Committee.
LVMH 2019 . Governance and organization O U R M A I S O N S
LVMH COMPRISES 75 PRESTIGIOUS MAISONS ORGANIZED
INTO SIX BUSINESS GROUPS. EACH MAISON STEADFASTLY PRESERVES
AND PERFECTS A LONG TRADITION OF EXPERTISE
AND OFFERS EXCEPTIONAL PRODUCTS.
14TH CENTURY 1365 LE CLOS DES LAMBRAYS 16TH CENTURY 1593
CHÂTEAU D’YQUEM 18TH CENTURY 1729 RUINART 1743 MOËT & CHANDON
1765 HENNESSY 1772 VEUVE CLICQUOT 1780 CHAUMET 19TH CENTURY
1815 ARDBEG 1817 COVA 1828 GUERLAIN 1832 CHÂTEAU CHEVAL BLANC 1843
KRUG 1843 GLENMORANGIE 1846 LOEWE 1849 ROYAL VAN LENT 1852 LE BON
MARCHÉ 1854 LOUIS VUITTON 1858 MERCIER 1860 TAG HEUER 1860 JARDIN
D’ACCLIMATATION 1865 ZENITH 1870 LA SAMARITAINE 1884 BVLGARI 1895
BERLUTI 1898 RIMOWA 20TH CENTURY 1908 LES ECHOS 1914 PATOU 1916
ACQUA DI PARMA 1923 LA GRANDE ÉPICERIE DE PARIS 1924 LORO PIANA 1925
FENDI 1936 DOM PÉRIGNON 1936 FRED 1944 LE PARISIEN-AUJOURD’HUI EN
FRANCE 1945 CELINE 1946 CHRISTIAN DIOR COUTURE 1947 PARFUMS
CHRISTIAN DIOR 1947 EMILIO PUCCI 1952 GIVENCHY 1952 CONNAISSANCE
DES ARTS 1957 PARFUMS GIVENCHY 1958 STARBOARD CRUISE SERVICES
1959 CHANDON 1960 DFS 1969 SEPHORA 1970 KENZO 1970 CAPE MENTELLE
1972 PERFUMES LOEWE 1974 INVESTIR-LE JOURNAL DES FINANCES 1976
BELMOND 1976 BENEFIT COSMETICS 1977 NEWTON 1980 HUBLOT 1983 RADIO
CLASSIQUE 1984 PINK SHIRTMAKER 1984 MARC JACOBS 1984 MAKE UP FOR
EVER 1985 CLOUDY BAY 1988 KENZO PARFUMS 1991 FRESH 1992 COLGIN
CELLARS 1993 BELVEDERE 1998 BODEGA NUMANTHIA 1999 TERRAZAS DE LOS
ANDES 1999 CHEVAL DES ANDES 21ST CENTURY 2004 NICHOLAS
KIRKWOOD 2008 KVD VEGAN BEAUTY2009 MAISON FRANCIS KURKDJIAN
2010 WOODINVILLE 2013 MARC JACOBS BEAUTY 2013 AO YUN 2016 CHA LING
2017 FENTY BEAUTY BY RIHANNA 2017 VOLCÁN DE MI TIERRA 2019 FENTY
O U R B U S I N E S S G R O U P S
W IN ES
& SPIR ITS
FA SH ION
& LEAT H ER GOODS
PER FU M ES
& COSM ET IC S
Moët & Chandon, Krug, Veuve Clicquot,
The Fashion & Leather Goods business
LVMH is a key player in the perfume,
Hennessy, Château d’Yquem…
group comprises Louis Vuitton,
makeup and skincare sector, with
the origins of all these world-famous
Christian Dior Couture, Celine, Loewe,
a portfolio of world-famous French
estates are inextricably linked to the
Kenzo, Givenchy, Pink Shirtmaker,
brands: Christian Dior, Guerlain,
appellations and terroirs of the world’s
Fendi, Emilio Pucci, Marc Jacobs,
Givenchy and Kenzo. The Group
most prestigious wines and spirits.
Berluti, Nicholas Kirkwood, Loro Piana,
also owns other beauty brands:
Whether they are in Champagne,
Rimowa and Patou. While respecting
Benefit, Fresh, Acqua di Parma,
Bordeaux, or other famed wine regions,
the identity and autonomous
Perfumes Loewe, Make Up For Ever,
these Maisons, many of which date
management of these brands, LVMH
Maison Francis Kurkdjian, Fenty
back more than a century, all share
supports their growth by providing
Beauty by Rihanna, KVD Vegan
a powerful culture of excellence.
them with shared resources.
Beauty and Marc Jacobs Beauty.
WATC H ES
& J EW ELRY
SELEC T I V E
R ETA ILING
OT H ER
AC T I V IT IES
The LVMH Watches & Jewelry Maisons
The Selective Retailing business
Other activities include Groupe
are some of the most emblematic
group comprises Sephora, the world’s
Les Echos, which comprises leading
brands in the industry. They operate
leading selective beauty retailer,
French business and cultural
in jewelry and watches with Bvlgari,
Le Bon Marché, a Paris department
news publications; Royal Van Lent,
Chaumet, Fred, TAG Heuer, Hublot
store with a unique atmosphere,
the builder of high-end yachts
and Zenith. These Maisons are guided
and travel retailers DFS and Starboard
marketed under the brand name
by a daily quest for excellence,
Cruise Services.
Feadship; Cheval Blanc and Belmond,
creativity and innovation.
which are developing a collection
of exceptional hotels.
16 • 17
LVMH 2019 . Our Maisons and business groups Fendi. Fall/Winter 2019-2020 Couture show in Rome.
A R E S P O N S I B L E
M O D E L D E D I C A T E D
T O E X C E L L E N C E
FORGED OVER GENERATIONS BY ALLIANCES BETWEEN MAISONS
– WEAVING TOGETHER THEIR TRADITIONS OF EXCELLENCE
AND CREATIVE PASSION – LVMH HAS BUILT ITS LEADING POSITION
ON A UNIQUE PORTFOLIO OF ICONIC BRANDS.
These Maisons draw their energy from their exceptional
Nurturing talent
heritage, innovative mindset and receptive outlook. The
Group supports their development in a spirit of entrepre-
Encouraging all our employees to reach their full career
neurship, long-term vision and respect for the source of
potential and achieve their aspirations. Developing diversity
their strength and stature.
and the wealth of human resources at our companies in
As ambassadors of an authentic art de vivre, it is our
all the countries where we operate, and encouraging
responsibility to set the right example in every aspect of
initiatives in these areas. Contributing to the knowledge and
our business, from product design to the experience that
preservation of our crafts outside the Group in addition to
customers have throughout their relationships with the
our own expertise as artisans and designers.
Group's brands; from investment choices to social and
environmental initiatives. Because what we do requires a
Environment
diverse range of talent, we are committed to training
teams that embody excellence. Because passing on skills
Working together to preserve the planet’s resources,
is an integral part of our culture, we want to use that
to design and develop products that are compatible
opportunity to promote social inclusion and employ-
with environmental concerns, reporting on our policies
ment. Because our crafts make the most of nature at its
and projects and the progress achieved in meeting our
purest and most beautiful, we see preserving the environ-
object ives. Contributing to environmental protection above
ment as a strategic imperative.
and beyond factors directly related to our operations
The values and actions encompassed by our sustainable
by entering into active partnerships with cooperating
development attitude emerge from a tradition that dates
businesses, local authorities and associations.
back to the origins of our Maisons and forms an integral
part of our heritage. Our long-term success depends not
Partnerships and support
only on the Group’s solid business model and profitable
growth strategy, but also on our unwavering commitment
Maintaining and strengthening responsible relationships
to creativity, excellence, and our environmental impact
with our partners, suppliers and subcontractors. Imple-
and corporate citizenship.
Business performance
menting a patronage program for the widest possible
public benefit which reflects and transmits our funda-
mental values. Providing active support for major causes,
humanitarian projects and public health programs, and
Combining profitable growth and sustainability with
developing initiatives in support of art and young people.
commitments to creativity and excellence. Applying our
creative passion to the art de vivre to which our customers
aspire. Strengthening our position as a global leader, and
being the benchmark for managing and developing
high-quality brands.
18 • 19
LVMH 2019 . Performance and responsibility T H E W O R L D ’ S L E A D I N G
L U X U R Y G O O D S G R O U P
A UNIQUE OPERATING MODEL
ANCHORED BY SIX PILLARS
1 .
—
DECENTRALIZED
ORGANIZATION
2 .
—
VERTICAL
INTEGRATION
3 .
—
SUSTAINING
SAVOIR-FAIRE
Our structure and operating principles
Vertical integration fosters excellence
Our Maisons pursue a long-term
ensure that our Maisons are both
both upstream and downstream, allow-
vision. To preserve their distinctive
autonomous and responsive. This
ing control over every link in the value
identities and excellence, LVMH
allows us to be extremely close to our
chain – from sourcing and production
and its Maisons have developed a
customers, to ensure that rapid, effec-
facilities to selective retailing – which
range of initiatives to pass down skills
tive and appropriate decisions can be
in turn means that the image of our
and expertise, and promote craft
made. This approach also sustains the
Maisons is carefully controlled.
trades and design professions among
motivation of our employees, encour-
aging them to show true entrepre-
neurial spirit.
younger generations.
4 .
—
5 .
—
ORGANIC GROWTH
CREATING SYN ERGIES
The LVMH Group places priority on
Sharing of resources on a Group scale
organic growth and commits signifi-
creates intelligent synergies while
6 .
—
BALANCE ACROSS
BUSIN ESS SEGMENTS
AND GEO GRAPHIES
cant resources to develop its Maisons,
respecting the individual identities and
Our Group has the resources to sus-
as well as to encourage and protect
autonomy of our Maisons. The com-
tain regular growth thanks to the bal-
creativity. Our employees are key to
bined strength of the LVMH Group
ance across its business activities and
this approach, making it essential to
is leveraged to benefit each of its
a well-distributed geographic foot-
support their career growth and
Maisons.
encourage them to excel.
print. This balance means that we are
well-positioned to withstand the
impact of shifting economic factors.
€53 .7 bn
+15%
Revenue
€1 1 . 5 bn
+15%
Profit from
recur ring operations
€7. 2 bn
+13%
Net profit
Group share
70
countries
4 ,91 5
stores
163 , 309
employees
75
Maisons
2019 REVENUE BY REGION
(in %)
2019 REVENUE BY BUSINESS GROUP
(in %)
Other
markets
11%
Asia
(excl. Jap an)
30%
Japan
7%
France
9%
Europe
(excl. France)
19%
United States
24%
Selective
Retailing and
Other activities
28%
Watches &
Jewelr y
8%
Perfu mes &
Cos metics
13%
Wines &
Spirits
10%
Fashion &
Leather Goods
41%
GEOGRAPHIC FOOTPRINT
(as of December 31, 2019)
UNITED STATES
Revenue: €12,613 m
829 stores
31 ,4 83 employees
OTH ER MA RKETS
Revenue: €6,062 m
494 stores
12,172 employees
FRANC E
Revenue: €4,725 m
535 s tores
33,701 employees
EUROPE (excl. France)
Reven ue: €10,203 m
1,177 stores
40,453 employees
JAPAN
Reven ue: €3,878 m
427 stores
7,391 employees
ASIA (excl. Japan)
Reven ue: €16,189 m
1,453 stores
38,109 employees
20 • 21
LVMH 2019 . Strategy and key figures Notre-Dame de Paris Cathedral
C O M M I T M E N T S I N 2 0 1 9
IN 2019, LVMH ONCE AGAIN DEVOTED
RESOURCES AND SKILLS TO A RANGE OF INITIATIVES
SUPPORTING IMPORTANT CAUSES.
A RT & C U LT U R E
Art has always inspired the creation of exceptional
products, and at LVMH highly skilled craftsman-
ship and rare professions are a precious cultural
resource. It is therefore only natural that the
Group should take action to foster art and cul-
ture. Our support spans several areas, in France
and further afield: helping restore historical
monu ments, enriching the collections of major
museums, contributing to key national exhibi-
tions and supporting contemporary artists.
—
APRIL 2019
van Gogh, Edgar Degas, Auguste Renoir, Paul Gauguin,
Henri de Toulouse-Lautrec and Amedeo Modigliani.
In early October, the entire Fondation Louis Vuitton was
taken over by a large-scale exhibition of the works of
Charlotte Perriand, a leading light of 20th century art,
known for being a visionary, socially engaged designer
and architect whose work broke down barriers between
different art forms and still today remains an endless
source of inspiration. Featuring over 400 works, Char
lotte Perriand: Inventing a New World showcased the dia-
logue between this pioneering figure and the artists of
her time, including Fernand Léger, Pablo Picasso, Georges
Braque, Alexander Calder, Hisao Dōmoto, Joan Miró,
Henri Laurens, Le Corbusier and Sōfu Teshigahara.
200 pieces by Perriand’s contemporaries were displayed
LVMH’S PLEDGE TO HELP REBUILD
within her architectural creations and alongside her
NOTRE-DAME DE PARIS
design works, tracing the outlines of a new world, bal-
anced between tradition and modernity.
Following the tragic fire that devastated part of Notre-
Dame de Paris cathedral, the Arnault family and the
LVMH Group pledged their support to help rebuild this
architectural treasure – a symbol of France, its heritage
and national unity – by donating a total of €200 million to
the monument’s restoration fund.
—
2019-2020
TWO SUCCESSFUL EXHIBITIONS
AT THE FONDATION LOUIS VUITTON
From February 20 to June 17, 2019, the Fondation Louis
Vuitton exhibited over 100 Impressionist masterpieces,
including some of the greatest French works from
the late 19th century and early 20th century, acquired
by English industrialist and art patron Samuel Courtauld.
The exhibition – which was divided into three galleries
and revolved around a set of exceptional works by
two of the era’s iconic artists: Georges Seurat and
Paul Cézanne – also allowed visitors to admire master-
pieces by Claude Monet, Édouard Manet, Vincent
LEA DER SH IP &
EN T R EPR EN EU R SH IP
At LVMH, leadership drives performance. Thanks
to the leadership of all our employees with vision
– and the ability to instill this vision in their staff
– we are able to achieve highly ambitious goals.
Our decentralized organization lets us build close
relationships with our customers; make fast, effec-
tive decisions; and motivate our employees for the
long term by encouraging them to take an entre-
preneurial approach. This approach encourages
risk-taking and perseverance, and requires a prac-
tical mindset and the ability to push our employees
to outdo themselves. We foster collective intelligence
and run in-house innovation development pro-
grams so that our boldest employees can transform
their innovative ideas into business plans.
22 • 23
LVMH 2019 . Commitments in 2019 Viva Technology 2019
—
MARCH 2019
and the innovations of 30 startups backed by the Group,
SHERO: A DIGITAL PLATFORM TO HELP WOMEN
which came to pitch their solutions to the customer
CONNECT THROUGHOUT THE LVMH GROUP
experience needs of the future. This year’s LVMH Innova-
Open to all Group employees, Shero is an in-house,
mobile body measurement technology for apparel retail-
community-based digital platform that shares editorial
ers in particular. The award includes a year of tailored
content (such as articles, videos and podcasts) and offers
business development support from the LVMH Group,
specific career development tools for women within the
helping 3DLOOK grow through La Maison des Startups
tion Award went to 3DLOOK, a startup that develops
Group. Launched at the EllesVMH Accelerator Day event
incubator at Station F.
held in March 2019 on the occasion of International Wom-
en’s Day, Shero was one of the winning projects at the
—
DARE EllesVMH event held in Venice in March 2018. The
JUNE, NOVEMBER 2019
aim of Shero – a combination of the words “she” and
DARE CAMPS: ENCOURAGING
“hero” – is to build a community of inspiring, ambitious
AN ENTREPRENEURIAL SPIRIT AMONG
women to meet LVMH’s goal of achieving gender equal-
OUR EMPLOYEES
ity in top management positions in 2020.
—
MAY 2019
LVMH’S FOURTH APPEARANCE
AT VIVA TECHNOLOGY
In 2019, for its fourth appearance at VivaTech, LVMH
DARE is LVMH’s “intrapreneurship” program. Its DARE
Camps let 60 employees put their best ideas to the
test in a work environment that mirrors the launch of a
startup. Two DARE Camps were held in 2019, in London
and Tokyo. These events culminated in the presentation
of twelve short-listed projects, three of which were
selected by a jury made up of Group senior executives
once again showcased innovation at its Luxury Lab. At
and outside entrepreneurs. At the end of each DARE
the 500 sq.m LVMH Pavilion, the Group launched a
Camp, each project can move on to the next round of
dialogue between the expertise of its 24 Maisons present
development through the DARE incubator program,
which has three phases: Integration, Acceleration and
Launch. In 2019 LVMH took this initiative a step further
with its DARE Acceleration Days: a two-day event to help
budding employee entrepreneurs develop 20 promising
projects identified at DARE Camps. For the Group, this
event helped strengthen its commitment to intrapreneur-
ship and support its in-house talent over the long term.
—
DECEMBER 2019
THE ENGAGED MAISONS DINNER CAPS
OFF A YEAR OF SUPPORT FOR GOOD CAUSES
For the past seven years, LVMH has held its annual
Engaged Maisons Dinner, an event that showcases the
T R A DIT ION
& EX PERT ISE
LVMH and its Maisons are the heirs and cus-
todians of a long tradition of artisanal and
creative skills, some of which date back centu-
ries. They scrupulously safeguard and develop
this cultural heritage. Perpetuating these pro-
fessions and their traditions is vital for LVMH’s
long-term future, since only very highly skilled
artisans can make our beautifully crafted
products. And this unique legacy, this expertise,
is also what we are known and respected for
worldwide.
Group and its Maisons’ commitment to corporate social
—
responsibility. This year’s event brought together around
MAY 2019
30 of the Group’s Maisons, as well as prominent figures
PROMOTING EQUAL OPPORTUNITY
and guests representing the nonprofit sector, to support
WITH L’INSTITUT DES VOCATIONS POUR L’EMPLOI
a cause championed by LVMH since 2011: the fight
against sickle cell anemia. Since then, the LVMH Group
Founded by the LVMH Group in 2019 and chaired by
has pledged its support for the Robert-Debré pediatric
hospital by helping fund research and treatment for this
Brigitte Macron, L’Institut des Vocations pour l’Emploi
(LIVE) shares the Group’s long-term vision, focusing
inherited genetic disease, for which there is currently no
on passing on skills to younger generations as a top
cure. Over €1 million has been donated since the start of
strategic priority. With LIVE, LVMH offers a second
this partnership.
chance to people over the age of 25 who have been
24 • 25
LVMH 2019 . Commitments in 2019 China International Import Expo
marginalized on the job market. The first LIVE center
NOVEMBER 2019
opened in Clichy-sous-Bois and welcomed its first class
LVMH SIGNS MAJOR PARTNERSHIP
of 50 students, who took refresher courses on key skills
WITH THE CHINA INTERNATIONAL
such as written and verbal communication, math and
IMPORT EXPO (CIIE)
general knowledge, as well as personal development
—
training and career planning guidance.
For the first time, LVMH and 13 of its Maisons took part in
—
OCTOBER 2019
LVMH’S INSTITUT
DES MÉTIERS D’EXCELLENCE
CONTINUES TO GROW
the China International Import Expo trade fair, in and
around their own LVMH pavilion. The CIIE – which was
held for the second time from November 5 to 10, 2019 in
Shanghai – is a major event that was launched to pro-
mote trade and strengthen cooperation between China
and other countries. The event was held at Shanghai’s
National Exhibition and Convention Center, where LVMH
Since it was founded by the Group in 2014, LVMH’s
– which was also present at the French national pavilion
Institut des Métiers d’Excellence (IME) has been con-
among the country’s largest companies – used the
stantly growing, driven by the Group’s commitment to
Group’s own 500 sq.m exhibition space to showcase the
training younger generations through apprenticeships.
excellence of its Maisons and their singular ability to com-
In 2019, the IME welcomed a total of 300 apprentices in
bine innovation and heritage, with a sophisticated, inno-
France, Switzerland, Italy and Spain (where a program
vative display: a fitting tribute to France.
was launched in 2019) – a tenfold increase over the first
year’s class. This initiative is a source of great pride for
LVMH, for which passing on its Maisons’ expertise is a
key priority.
SOC IET Y &
T H E EN V IRON M EN T
Since its inception, the Group has made sustaina-
ble development one of its strategic priorities. This
policy provides a powerful response to the issues of
corporate ethical responsibility in general, as well
as the role a group like LVMH should play within
French society and internationally.
—
MARCH 2019
established in 2011, which prohibits all forms of discrimi-
nation, including based on sexual orientation and gender
identity, as well as awareness campaigns, discrimination
testing and training held regularly throughout the year.
One such initiative was the “Unconscious Bias Training”
program launched in late 2019 for Group employees in
key positions. The aim of this training is to help such
employees gain a deeper understanding of the nature
and prevalence of prejudice toward others in the work-
place and to shine a light on the Group's commitment to
strengthening its inclusive corporate culture.
LVMH PROMOTES DIVERSITY AND INCLUSION
—
MAY 2019
LVMH showed its commitment to strengthening its inclu-
LVMH AND UNESCO WORK HAND IN HAND
sive corporate culture, pledging its support for the United
TO PROTECT BIODIVERSITY
Nations’ standards of conduct for business tackling dis-
crimination against lesbian, gay, bi, trans, and intersex
On May 14, 2019, LVMH stepped up its long-standing
(LGBTI) people, in Paris in March with members of
commitment to biodiversity conservation with a major
LVMH's Executive Committee and Maison Presidents,
milestone, signing a five-year partnership with UNESCO
then again in New York in June with the Group's Maisons
to support its intergovernmental scientific program, “Man
based in the United States. This initiative builds on LVMH’s
steadfast policy of promoting diversity in the workplace,
fighting discrimination and respecting all individuals,
which it implemented more than 10 years ago. The meas-
and the Biosphere” (MAB). Both partners will appear side
by side at international events, particularly in 2020, at
the IUCN(1) World Conservation Congress in Marseille,
and at the Convention on Biological Diversity to be held
ures taken under this policy include the Code of Conduct
in China in November. Driven by common core values
26 • 27
LVMH 2019 . Commitments in 2019 —
enshrined in a charter, LVMH and UNESCO will also join
SEPTEMBER 2019
forces to prevent biodiversity loss. The Group’s Maisons
DEVELOPING EFFICIENT
will draw on UNESCO’s scientific expertise and its
SOLUTIONS THROUGH LVMH’S
network of 686 biosphere reserves to develop their
PARTNERSHIP WITH THE SOLAR
sustainable sourcing policies. LVMH will also take part in
IMPULSE FOUNDATION
scientific research projects backed by MAB and contrib-
ute to pilot projects on the conservation and sustainable
Driven by a shared determination to develop environ-
use of biodiversity over the long term.
mentally friendly technologies, LVMH and the Solar
(1) The International Union for Conservation of Nature.
Impulse Foundation joined forces in a strategic partner-
—
AUGUST 2019
LVMH LENDS ITS SUPPORT
TO FIGHTING FOREST FIRES
IN THE AMAZON
ship in 2019. The aim of this new partnership is to help
LVMH incorporate solutions approved by the Solar
Impulse Foundation into its operations. The Foundation
will provide the Group and its Maisons’ staff and partners
with certified solutions using a joint development
approach, while LVMH will apply for certification for the
innovations already used within the Group from among
Bernard Arnault, Chairman and Chief Executive Officer of
the 1,000 solutions recommended by the Foundation.
LVMH, and Yann Arthus-Bertrand, a member of the
The partnership will focus on areas such as reducing
Group’s Board of Directors, announced LVMH’s pledge to
energy consumption at the stores of LVMH’s Maisons,
support the initiative spearheaded by French President
generating renewable energy and using alternative
Emmanuel Macron and the G7, contributing €10 million to
modes of transport instead of air freight.
fight the fires raging in the Amazon rainforest. They
called upon all those who share their conviction that the
—
Amazon – an indispensable and irreplaceable part of our
SEPTEMBER 2019
natural world heritage – must be saved, to take part in
LA FABRIQUE NOMADE:
this initiative, which demands a collective effort. This initi-
USING CRAFTSMANSHIP
ative resonates strongly with the Group’s involvement
AS A SPRINGBOARD
with UNESCO to help protect global biodiversity.
—
SEPTEMBER 2019
Inspired by their shared commitment to preserving
expertise, LVMH and La Fabrique Nomade entered into a
partnership in 2019. La Fabrique Nomade has developed
FUTURE LIFE MAKES HEADLINES
a refugee training and integration program for skilled
IN PARIS AND NEW YORK
craftspeople that allows them to continue practicing their
craft in France. In the same vein, LVMH is committed to
In 2019, two “Future LIFE” events held in Paris and New
preserving and passing on the traditional expertise and
York brought together LVMH staff and many prominent
craft skills that epitomize the excellence of its Maisons.
figures – including fashion designers Stella McCartney
United by this passion for craftsmanship, the Group and
and Maria Grazia Chiuri – to focus on the environment.
the nonprofit inaugurated their partnership in 2019 with
These high-profile events highlighted the Maisons’ pio-
the unveiling of the Traits d’union 4 collection, created by
neering initiatives in a range of areas, including sustaina-
La Fabrique Nomade’s craftspeople and based on the
ble design, sustainable sourcing, the circular economy,
theme of treasure. In 2020, LVMH aims to expand its
energy efficiency and biodiversity conservation. With just
involvement with La Fabrique Nomade, bringing design-
a few months to go before the end of LIFE 2020, they
ers from the Group’s Maisons on board alongside the
also helped measure the progress made under the pro-
nonprofit’s craftspeople and helping develop the next
gram and unveil some of the Group’s new initiatives, such
Traits d’union collection.
as its Animal-Based Raw Materials Sourcing Charter,
which was officially presented at the event. Several other
strategic agreements were announced, including freeing
up emergency aid to preserve the Amazon rainforest, a
partnership with the Solar Impulse Foundation to jointly
develop clean technologies and funding for the Compt
abilité Écologique (Sustainable Accounting) Chair
launched by the Fondation AgroParisTech.
Li f t i n g up t hos e i n need w it h Frenc h nonprof it
Secou rs Popu l a i re
In 2019, LVMH launched Une Journée Pour Soi (“A Day All Your Own”), an
initiative run in partnership with French nonprofit Secours Populaire in six
French cities – Saint-Denis, Marseille, Roubaix, Boulogne-Billancourt,
Reims and Carcassonne. This event gave more than 400 underprivileged
women a breath of fresh air, putting their day-to-day worries aside and
spending a day focused on their own well-being. To remember this special
day, LVMH and Éditions Alternatives (a subsidiary of Gallimard) published
a book featuring a selection of photo portraits and testimonials from the
women who participated in the event. All proceeds will be donated to
Secours Populaire and help raise awareness of the difficulties facing
women, who are the number-one victims of economic precarity in France.
The second event of this charitable initiative will be held in 2020, open to
800 women in six other cities.
28 • 29
LVMH 2019 . Commitments in 2019 D I V E R S I T Y I S
T H E F O U N D A T I O N O F
O U R P E R F O R M A N C E
WITH 179 NATIONALITIES AND NUMEROUS PROFESSIONS SPANNING
OUR ENTIRE VALUE CHAIN – FROM SOURCING RAW MATERIALS TO
MANUFACTURING AND SELLING OUR PRODUCTS – LVMH EMBRACES THIS DIVERSITY
TO PROMOTE DIALOGUE AND COLLABORATION BETWEEN EMPLOYEES, MINDFUL
THAT THIS WEALTH OF EXPERIENCE AND SENSE OF COMMUNITY ARE A KEY
ASSET IN CONSOLIDATING ITS LEADERSHIP YEAR AFTER YEAR.
“In today’s world, where people are making their unique voices heard, being able to listen
to them, include them and value them is a major driver of creativity for our sector.”
Chantal Gaemperle, LVMH’s Director of Human Resources and Synergies
Recruiting a diverse range of candidates
entrepreneurship and innovation are highly valued, and
there are plenty of opportunities to build a career com-
Drawing on the personalities, skills and viewpoints of its
mensurate with their ambitions. An environment where
163,000 employees working at its 75 Maisons, LVMH has
everyone is welcome, and where collective strength is
set up a “knowledge economy” so that each individual
what counts.
can achieve their full potential and each new idea brought
Maintaining a long-term vision and preparing for the
forward by an employee can be a source of inspiration for
future are ongoing priorities for LVMH. The Group contin-
another. Hiring new talent follows the same approach,
ues to build close ties with schools and universities
including people from a diverse range of backgrounds
around the world in order to expose students to its
who can enrich our ecosystem and expand our horizons
diverse range of business lines and career opportunities.
with their unique perspectives.
Following two initiatives in Europe, the Inside LVMH pro-
Worldwide, in 2019 LVMH recruited 41,000 employees
gram was launched in China, where nearly 10,000 stu-
on permanent contracts, and 8,328 interns and appren-
dents from 40 Chinese universities applied using an
tices. We seek to attract the most promising candidates
innovative system on the WeChat social media platform;
to support the Group’s development so that we can con-
120 of them were selected to discover the Group and
tinue to deliver excellent performance in a competitive
complete an internship at one of its Maisons.
global environment.
Through our staff induction and development policy, and
Promoting and valuing diversity in our talent pool
by championing diversity within our ecosystem – in all
our different Maisons, business lines, activities and geo-
LVMH’s human resources policy aims to enable our
graphic areas – we endeavor to offer everyone unique
employees to fully express their personalities and skills.
career opportunities, making LVMH a very attractive
LVMH cultivates its wealth and contributes to a fulfilling
employer for top talent. Attracting the best is fundamen-
work environment for its employees. LVMH offers them
tal for LVMH. The Group and its Maisons seek people with
specific learning and skills development opportunities to
skills and experience, but who are also sensitive to and
help them meet their aspirations: individual career plan-
aware of their creative environment; people who can
understand the duality of LVMH’s world: the enduring,
ning, participation in “intrapreneurship” (see DARE, page
24) and interdisciplinary projects, and more. These initia-
lasting nature of our Maisons, but the need for us to be
tives and experiences enable the Group’s talented staff to
responsive, agile entrepreneurs. We seek people who will
expand their capabilities, skill sets and expertise and build
blossom in a business environment where proactive
their professional networks.
30 • 31
LVMH 2019 . Talent While employees themselves play the leading role in their
Committed to respect for all
skills and career development, LVMH’s human resources
staff and managers are fully engaged in supporting and
Mindful of its responsibilities and its role within society,
promoting the development of the Group’s talent pool.
LVMH is firmly committed to expanding the positive
Career planning sessions let employees express their aspi-
impact of its business on its employees and the surround-
rations and discuss how to achieve them with their man-
ing communities. The Group pursues this goal through
ager and HR advisor. Lastly, to help employees set and
its values, its expertise and the corporate social responsi-
achieve their career development goals, human resources
bility approach led by the Group’s Human Resources
staff post job openings within the Group on an in-house
Department.
digital platform and hold monthly career meetings.
To respect everyone’s individuality and better reflect the
A cornerstone of the Group’s human resources policy, the
diversity of the communities in which it operates, LVMH
annual Organizational Management Review (OMR), helps
takes an active approach to preventing discrimination
identify the Group’s most promising talent and guide them
and promoting diversity and inclusion. This approach is
toward key positions within the company. In 2019, through
grounded in a specific policy, shared by all and enshrined
this system and succession plans, 66% of executive posi-
in its Code of Conduct. Awareness-raising campaigns,
tions were filled internally. These numbers confirm that the
training sessions – including one on decision-making
Group, through its rich ecosystem and the attention paid
biases held worldwide since December 2019 – and dis-
to its talent, offers motivating long-term career prospects
crimination testing are carried out regularly throughout
for its employees. The annual organizational and talent
the year. Another 2019 milestone was LVMH’s move to
review also measures the promotion of women to the
support the United Nations’ standards of conduct for
most senior positions within the Group. In 2019, they made
business tackling discrimination against lesbian, gay, bi,
up 44% of senior executives (versus 23% in 2007).
trans, and intersex (LGBTI) people. This initiative was
Stimulating our knowledge-based economy
Executive Committee and the Maison Presidents. More-
encouraged and supported by the members of LVMH’s
over, ensuring that people with disabilities are included
In a sector as dynamic as the luxury industry, calling
and have access to employment and information on the
things into question and being open to the world around
products and services of the Group’s Maisons is key for a
us is crucial. Change and transformation are vital issues
leading group in the luxury industry. Chantal Gaemperle
for the LVMH Group’s Maisons. They must therefore
reaffirmed this commitment in a speech to all employees
embrace this mindset and function as learning organiza-
on the International Day of Persons with Disabilities.
tions. We constantly encourage our staff to learn from
Lastly, helping people who have been destabilized by dif-
each other’s expertise and unique talents by sharing their
ficult circumstances to find their place in society is the
experiences – both their successes and their failures.
driving force behind LVMH’s commitment to society. Its
Our employee development initiatives focus on four key
many initiatives include coaching days, mentoring and
topics: the Group’s culture and core values; manage-
support for nonprofits. This was the spirit guiding the cre-
ment and leadership; drivers of excellence; and open
ation of “Une Journée Pour Soi” (“A Day All Your Own”),
innovation.
an empowering initiative for underprivileged women to
Passing on skills and expertise is key for a group like
help them regain self-confidence, in partnership with
LVMH. The Institut des Métiers d’Excellence LVMH, which
French nonprofit Secours Populaire (see page 29). Also in
was founded in 2014, offers free, practical vocational
2019, the Group, in collaboration with Brigitte Macron,
training programs in craftsmanship, design and sales to
launched a major initiative: LIVE (L’Institut des Vocations
talented young applicants. It promotes equal opportuni-
pour l’Emploi), which offers comprehensive career guid-
ties without compromising on its strict selection criteria.
ance for people above the age of 25 who have been mar-
Since its inception, it has trained a total of 800 appren-
ginalized on the job market, are outside the scope of the
tices in France, Switzerland, Italy and Spain, enhancing
national education system and either minimally or not at
their employability. IME is yet another example of LVMH’s
all covered by the social safety net. The first location
efforts as a responsible employer to foster diversity of
opened its doors in Clichy-sous-Bois, and two others are
origin and culture at its Maisons.
under way in France.
Indicators
a s of De ce m be r 31 , 2019
33
163,309
Median age
employees worldwide
73%
women
41,287
joiners ( 1)
€138 m
invested
in training
EMPLOYEES BY REGION
(in %)
EMPLOYEES BY BUSINESS GROUP
(in %)
Other
markets
7%
Asia
(excl. Jap an)
23%
Japan
5%
France
21%
Europe
(excl. France)
25%
United States
19%
Wines & Spirits
5%
Other activities
3%
Selective
Retailing
35%
Fashion &
Leather Goods
33%
Perfumes &
Cosmetics
19%
Watches &
Jewelr y
6%
WORKFORCE BY AGE(1)
(in %)
BREAKDOWN OF MEN/WOMEN
BY BUSINESS GROUP(1)
55+
7%
45 -54
15%
35 -44
26%
(1) Total permanent headcount.
Under 25
12%
25- 34
40%
Wines &
Spirits
Fashion &
Leather Goods
Perfu mes &
Cos metics
Watches &
Jewelr y
Selective
Retailing
Other
activities
33%
41%
17%
17%
62%
63%
38%
67%
83%
59%
83%
37%
32 • 33
LVMH 2019 . Talent Guerlain. Île d’Ouessant.
E N V I R O N M E N T : A K E Y
P R I O R I T Y F O R T H E G R O U P,
N O W M O R E T H A N E V E R
LVMH’S ENVIRONMENTAL POLICY CONTINUES TO BE ROLLED OUT ACROSS
EVERY ASPECT OF THE GROUP’S ACTIVITIES. AS SEEN IN 2019, ENVIRONMENTAL
AWARENESS IS NOW AN INTEGRAL PART OF OUR WORK CULTURE.
THIS CAN BE SEEN AT EACH MAISON IN THE FORM OF SPECIFIC INITIATIVES,
CONSTANT PROGRESS AND A DESIRE FOR CONTINUOUS IMPROVEMENT.
For nearly three decades, protecting the environment
section lists around 450 sustainable materials and offers
has been one of the cornerstones of LVMH’s growth strat-
helpful tips and useful information on sustainable design.
egy. With the creation of an Environment Department in
In 2019, a new recycling directory was launched, reflect-
1992, the 2012 launch of LIFE – a comprehensive program
ing the Group’s desire to develop the circular economy.
organizing initiatives around a common vision and key
Mindful of the importance of innovation in improving the
priorities – and the ambitious shared targets set in 2016
environmental performance of products, LVMH pro-
for 2020, the Group has also brought its 163,000 employ-
ees on board in this endeavor. This shared ambition
has united the entire Group around a common cause,
motes creativity at its Maisons and helps them identify
disruptive solutions. One such initiative is the “Sustaina-
bility & Innovation in Luxury | Fostering Creativity” pro-
embraced by its top leadership. Spearheaded by the
gram launched in 2017 with Central Saint Martins College
Group Managing Director, today the LIFE strategy gives
of Art and Design.
impetus to all the Group’s Maisons and business lines, and
helps LVMH stand out as a leader in sustainable luxury.
Responsible supply chains
More sustainably designed products
LVMH’s products are made from natural raw materials,
many of which are rare and precious. To preserve this
In 2019, new progress was made to offer customers envi-
capital, the Group has worked for many years to set up
ronmentally friendly products. Sustainable design is
supply chains that meet the highest environmental stand-
a key priority of LIFE 2020 and aims to reduce the envi-
ards. Selected as a priority for LIFE 2020, this approach is
ronmental footprint of a product throughout its life cycle.
anchored in the increasing use of certification for raw
It is now widely applied within the Maisons in a growing
materials and suppliers. By the end of 2019, for example,
number of fields: design, composition, raw materials,
98% of diamonds and 82% of gold purchased by LVMH
manufacturing methods, packaging, shipping, sales,
were certified. In 2019, the share of cotton sourced from
advertising and end-of-life recycling. Today, sustainable
sustainable supply chains rose from 15% to 54%. While
design is also applied to furniture and advertising
placing the emphasis on certification, the Maisons help
materials used at points of sale and in event planning.
guide stakeholders in their supply chains toward best
Employee skills have also grown thanks to training
practices using constantly fine-tuned assessment tools,
offered by the Environment Academy, such as a one-
increasingly frequent audits and tailored improvement
and-a-half-day session for people working in creative
plans. LVMH supports these initiatives through innovation.
fields. In parallel, LVMH has continued to develop tools to
facilitate decision-making and encourage their use. As an
In 2019, for example, the Group unveiled its Animal-Based
Raw Materials Sourcing Charter. This charter is the result
example, Edibox helps Maisons calculate the Environ-
of a long process of scientific research and collaboration
mental Performance Index of their products. On the
between outside environmental experts and those of
Group intranet, the Matières à Penser (Food for Thought)
LVMH, its Maisons and its suppliers. The exhaustive char-
34 • 35
LVMH 2019 . Environment ter covers the full range of issues concerning the sourcing
energy efficiency at points of sale. LVMH supports its
of fur, leather, exotic leather, wool and feathers. It allows
Maisons in their efforts, as illustrated by the highly suc-
the Group to make long-term commitments to achieving
cessful CEDRE disassembly and recycling platform for
progress in three areas: full traceability in supply chains;
obsolete products. Initially used by four perfumes and
animal farming and trapping conditions; and respect for
cosmetics Maisons, CEDRE now works for 11 Maisons and
local populations, the environment and biodiversity.
also processes fashion and leather goods items. This
Under the charter, a scientific committee has been
model will even be exported to Italy in the near future.
formed, and each year it will support and supervise a
LVMH also helps its Maisons through programs like LIFE
number of research projects aimed at driving progress in
in Stores. Dedicated to improving the energy efficiency
this area.
of its stores, it encourages Maisons to limit unnecessary
lighting and provides them with sustainable solutions
Lower energy consumption
that combine LEDs and digital technology.
For many years LVMH has been involved in the fight
against climate change, and also takes action to reduce
Partnerships focused
on biodiversity and climate
its energy-related greenhouse gas emissions. In 2019, the
Group moved closer to reaching its target of cutting
LVMH uses partnerships to strengthen its environmental
emissions by 25% between 2013 and 2020. Since the end
policy, collaborating with public and private stakeholders
of 2015, LVMH has rallied its Maisons around a highly
of all backgrounds, from scientists and researchers to
motivating and effective internal carbon fund. Each met-
ric ton of CO2 emitted is valued at 30 euros, so the Mai-
sons are required to invest in increasing energy efficiency,
manufacturers operating outside its own markets. This
tradition continued in 2019. As an example, employees
offered their input on sustainable fashion as part of an
improving monitoring and reporting, and expanding the
initiative launched by the Paris Good Fashion nonprofit
use of green energy. They very quickly embraced this
together with all the sector’s stakeholders. In keeping
tool, which helps them speed up their transition to more
with its commitment to including well-respected public
sustainable energy. Celebrating its fourth year of exist-
figures, the Group welcomed Yann Arthus-Bertrand to its
ence, the carbon fund continued to grow. A total of
Board of Directors. On May 14, LVMH announced a new
138 projects were launched (23% more than in 2018) by
five-year partnership with “Man and the Biosphere”,
32 Maisons (7% more than in 2018) and the carbon
UNESCO’s intergovernmental scientific program on bio-
contribution reached 16.5 million euros. These projects
diversity, a topic that its staff has been rallying around for
– 80% of which concerned energy efficiency – should
prevent 5,658 metric tons of CO2 emissions. To support
the Maisons in this effort and help them share their expe-
more than a decade. In particular, this agreement should
facilitate the implementation of innovative solutions for
the sustainable management of natural resources. On
rience and best practices, in March 2019 LVMH’s Environ-
September 3, the Comptabilité Écologique (Sustainable
ment Department finalized a new “Carbon Fund” page
Accounting) Chair of Fondation AgroParisTech was offi-
on the Group intranet. It presents a representative sample
cially launched. Funded by LVMH and other partners, its
of projects launched throughout the world, illustrating
goal is to instate non-financial accounting systems for all
the specific progress made through this program.
societal stakeholders to help drive the transition to a
Bolstering on-site
environmental management
more sustainable economy. Lastly, on September 25,
2019, at LVMH’s “Future LIFE” event held in Paris, Bernard
Arnault announced the creation of a program to jointly
develop clean technologies with Bertrand Piccard’s Solar
In another key thrust of LVMH’s environmental policy, the
Impulse Foundation.
shift toward environmentally friendly stores, warehouses,
workshops, manufacturing facilities and offices contin-
ued in 2019. LIFE 2020 includes targets that follow up
and build on the sustainable construction and manage-
ment initiatives that have been in place for many years at
the Maisons. These targets include the implementation of
an environmental management system at all production
sites, improvements at each site to one or more key com-
ponents of environmental efficiency (water consumption,
energy consumption, waste production), and improved
The dynamics of the LIFE program
Since 2015, al l of our Maisons have incorporated the L IF E program into their s trategic plans.
LIFE is a source of innovation and creativity, and also a common langu age that allows
our upper-level management to get deeply involved. The Group oversees
all of these activities, in coop eration with the LVMH E nvironment Dep ar tment.
Goals for 2020
Four key goals, defined in 2016 by a group of 80 p eople f rom 27 Mais ons ,
form the backbone of the Group ’s E nvironmental approach :
Improve
the environmental
performance
of all products.
Best practice applied
in 70% of our supply
chains, to reach 100%
in 2025.
25% reduction
in CO2 emissions
attributable
to energy consumption.
All manufacturing,
administrative and retail
sites to achieve at least
a 10% improvement
in key environmental
performance measures.
66%
of leather purchas ed
by the Maisons comes f rom
LWG-cer tified tanneries
€16.5 m
for projects f inanced
by the c arbon fund
36 • 37
LVMH 2019 . Environment Fondation Louis Vuitton
S U P P O R T I N G C U L T U R E ,
Y O U N G P E O P L E A N D
H U M A N I T A R I A N P R O J E C T S
LVMH’S GROUNDBREAKING CORPORATE PHILANTHROPY REFLECTS
THE CULTURAL AND ARTISTIC VALUES THAT UNITE ALL ITS MAISONS,
AND ARE THE CORNERSTONE OF THEIR SUCCESS – A CREATIVE,
COMPASSIONATE APPROACH TO CORPORATE SOCIAL RESPONSIBILITY.
Culture, heritage
and contemporary creative arts
mony held at the Fondation Louis Vuitton, along with a
€300,000 grant and a year of mentoring by a dedicated
team. The special jury prize – now called the Karl Lager-
For French and world heritage, 2019 will be remembered
feld Prize – was awarded to Hed Mayner, who will receive
first and foremost as the year of the fire that devastated
€150,000 and a year of mentoring by LVMH as well. Since
Notre-Dame de Paris cathedral in the spring. LVMH,
it was first awarded in 2014, the LVMH Prize has received
spurred by its Chairman, Bernard Arnault, offered a force-
more than 6,500 applications from designers of all back-
ful response, pledging a €200 million donation to help
grounds. The previous winners of the Prize for Young
save the monument and ensure the long restoration pro-
Fashion Designers are Thomas Tait (from Canada, 2014),
cess is followed through to completion.
Marta Marques and Paulo Almeida (Portugal, 2015),
In the fall, LVMH reaffirmed its commitment to France by
Grace Wales Bonner (United Kingdom, 2016), Marine
contributing to the installation, in the Champs-Élysées
Serre (France, 2017) and Masayuki Ino (Japan, 2018).
gardens, of Bouquet of Tulips, a monumental sculpture
offered by artist Jeff Koons as a tribute to the victims of
Opportunities for young people
the 2015 and 2016 terrorist attacks. By doing so, LVMH
wished to show its support for the cultural values and the
In 2019, LVMH’s patronage of programs for young people
universality of France and of Paris, offering Parisians and
focused particularly on music. It renewed its support for
visitors from the entire world an opportunity to come
“Orchestre à l’école”, enabling hundreds of children all
together in a shared spirit of freedom around a work of
over France to learn a musical instrument as part of a
art that symbolizes the unbreakable bonds of friendship
special educational program. LVMH also once again
and brotherhood between France and the United States.
loaned out the Stradivariuses in its collection.
In 2019, LVMH also maintained its commitment to sup-
porting art, culture, heritage and contemporary design.
LVMH has been a loyal patron of the Nuit Blanche night-
time arts festival for more than 11 years, and once again in
Backing medical research
and certain social causes
2019 provided support alongside the City of Paris to the
Lastly, the Group supported numerous institutions well
French and international arts scene, giving center stage
known for their work with children, the elderly and peo-
to contemporary artists at an event open to all in the
ple with disabilities, and for their efforts to combat major
heart of Paris. LVMH also renewed its support for the Gia-
causes of suffering and exclusion. In 2019, LVMH also sup-
cometti Institute, helping it develop its scientific and cul-
ported a number of scientific teams and foundations
tural program.
Lastly, in 2019, LVMH held the sixth edition of the LVMH
Prize for Young Fashion Designers. South African
designer Thebe Magugu was awarded the Grand Prize,
presented by Swedish actress Alicia Vikander in a cere-
involved in cutting-edge public health research.
38 • 39
LVMH 2019 . Corporate philanthropy Charlotte Perriand
The Fond at ion Lou i s Vu it ton cont i nues
to develop its a r t prog r a m a nd con f i r m s
its succes s w it h a ver y w ide Frenc h
a nd i nter n at ion a l aud ience
For the Fondation Louis Vuitton, the theme of 2019 was support for the
arts, illustrated by its exhibitions dedicated to two major figures of 20th
century modernity: Samuel Courtauld and Charlotte Perriand. This
groundbreaking program, spanning multiple disciplines and eras, drew
more than a million visitors to the Fondation Louis Vuitton.
In the first half of the year, The Courtauld Collection: A Vision for Impres
sionism paid tribute to the exacting standards and keen eye of English
industrialist Samuel Courtauld (1876–1947), who amassed one of the
world’s largest collections of Impressionist paintings. The exhibition at the
Fondation Louis Vuitton featured around 110 works, brought together for
the first time in Paris in 60 years, allowing nearly 500,000 visitors to
rediscover masterpieces of art history such as Manet’s A Bar at the Folies
Bergère (1882), Gauguin’s Nevermore (1897), Renoir’s The Theatre Box
(1874) and Van Gogh’s SelfPortrait with Bandaged Ear (1889).
In the second half of the year, the Fondation Louis Vuitton launched a
major exhibition celebrating the immense, multifaceted body of work of
Charlotte Perriand (1903–1999), a pioneer of modernity and one of the
leading lights of 20th century architecture and design, who helped define
a new art of living as well as a new role of the artist in society by bringing
together different disciplines and forms of artistic expression. The exhibi-
tion included spectacular reconstructions – built with the utmost scien-
tific rigor and in very close collaboration with Perriand’s successors – that
plunged visitors into the heart of the “synthesis of the arts” championed
by this maverick creative visionary, whose works were in constant dia-
logue with contemporary artists (such as Léger, Picasso and Calder) and
cultures (Japan in particular) the world over.
The end of 2019 saw the inauguration in Seoul of a spectacular edifice
designed by Frank Gehry – the architect of the Fondation – to house
a store and a new Espace Louis Vuitton, where an exhibition was held
to mark the occasion, featuring an exceptional set of eight works by
Alberto Giacometti.
In 2020, the Fondation Louis Vuitton will hold two major exhibitions: first,
an extensive retrospective on one of the world’s most influential living
artists: American photographer Cindy Sherman; and then – for the first
time in Europe, in partnership with the State Hermitage Museum in Saint
Petersburg, the Pushkin State Museum of Fine Arts and the State
Tretyakov Gallery in Moscow – one of the most legendary collections in
the history of modern art: the Morozov Collection.
40 • 41
LVMH 2019 . Corporate philanthropy Loro Piana, Vicuña reserve.
E T H I C S A N D R E S P O N S I B L E
PA R T N E R S H I P S
THE LVMH GROUP CULTIVATES ITS DIFFERENCE THROUGH
A CONSTANT QUEST FOR EXCELLENCE. WE MUST THEREFORE
BE EXEMPLARY WHEN IT COMES TO ETHICS, CORPORATE
SOCIAL RESPONSIBILITY, AND RESPECT FOR OUR STAKEHOLDERS.
Benchmark ethical texts and their application
Fair and responsible relations with our partners
LVMH’s commitments to its employees and stakeholders
Supporting our partners is a key strategic priority. LVMH
are reflected in its long-standing support for benchmark
aims to establish long-term relations with them based on
initiatives such as the United Nations Global Compact, and
a shared quest for excellence and a desire to establish a
in the adoption of internal charters and codes of conduct
set of common ethical rules, practices and principles.
which serve as benchmark texts for all of its Maisons.
For example, the Group is developing a global policy to
These include the LVMH Code of Conduct, the Supplier
ensure that its partners and suppliers adopt best environ-
Code of Conduct, the Environment Charter, the Charter
mental, social and societal practices. The policy involves
on Working Relations with Fashion Models and Their
sensitizing them to the overall issues and providing train-
Well-Being, and the Recruitment Code of Conduct.
ing in areas specific to their own activities. LVMH and its
The Group has a dedicated governance structure that
Maisons take a collaborative approach and support
ensures its values and benchmark ethical texts are
them with audits and the rollout of action plans, where
applied at the operating level. This structure includes the
necessary – over 1,500 audits were conducted in 2019.
Ethics & Sustainable Development Committee within the
LVMH’s policy for the responsible sourcing of raw materi-
Board of Directors, which is comprised mostly of inde-
als of animal origin is a key example of this commitment.
pendent directors.
The Group firmly believes it must continue to promote
The Group’s senior executive team coordinates the
decent working conditions, animal well-being, wildlife
initiatives of LVMH's Ethics & Compliance, Audit, Internal
conservation and environmental protection throughout
Control, Operations, Procurement, Environment, Social
its supply chains. With this in mind, in 2019 the Group
Development, and Financial Communication Departments.
launched the Animal-Based Raw Materials Sourcing
Given its businesses, LVMH reflects these commitments
Charter, which covers supplies of fur, leather, exotic
and values by paying special attention to various issues. It
leather, wool and feathers. This charter enables the Group
notably focuses on implementing an employee inclusion
to make long-term commitments in three areas: full
and personal growth policy; promoting and passing on
traceability in supply chains; animal farming and trapping
expertise and key skills; protecting personal data; reduc-
conditions; and respect for local populations, the environ-
ing its impact on ecosystems and natural resources; and
ment and biodiversity.
establishing and maintaining responsible supply chains.
LVMH works collaboratively to implement appropriate
policies and systems, raise awareness within its Maisons
and ensure they make progress, particularly in managing
these issues and their relations with suppliers regarding
environmental, social and ethical matters. It aims to pro-
mote and ensure sustainable supply chains.
Further information can be found in the “Environment” section and in the 2019 Universal Registration Document.
42 • 43
LVMH 2019 . Ethics and responsible partnerships B U S I N E S S G R O U P
I N S I G H T S
LVMH
Wi nes &
Spir its
2019
A VA L U E - E N H A N C I N G
S T R A T E G Y F O R
L A S T I N G S U C C E S S
LVMH owes its global leadership in premium wines and spirits to a unique
group of exceptional Maisons based in Champagne, Bordeaux and other
highly renowned wine-growing regions. Inspired by their visionary founders
and drawing on their strong heritage – which for some goes back hundreds
of years – they all share the key values of excellence and creativity, combining
tradition with innovation.
Well-balanced, worldwide presence
Against the current backdrop of supply constraints, Moët Hennessy contin-
ues to pursue a value-enhancing strategy focused on high-end market seg-
ments. The balanced geographic expansion of its portfolio of brands
continues thanks to a powerful and agile global distribution network present
in over 160 countries.
Responsible procurement policy
To support future growth and maintain the very high quality that has made
its Maisons a success, the Wines & Spirits business group pursues a dynamic,
responsible procurement policy. All the vineyards owned by LVMH have had
sustainable winegrowing certification since 2017, and the Maisons forge
partnerships with winegrowers by helping their grape suppliers comply
with these certifications. They are also actively developing their production
capacities. For example, the responsible, innovative and efficient Pont Neuf
bottling and logistics facility inaugurated by Hennessy in 2017 reflects
the Maison’s long-term vision.
Dom Pérignon
2019 REVENUE BY REGION
(in %)
Other
markets
13%
Asia
(excl. Jap an)
24%
Jap an
7%
France
5%
Europe
(excl. France)
18%
United States
33%
Revenue
€5 , 576 m
+6% (1)
Champagne
s ales volu mes
6 4 .7 m i l l ion
b ot t l e s
Cog nac
s ales volumes
98 .7 m i l l ion
b ot t l e s
Prof it f rom recu r ring
op erations
€1 , 7 2 9 m
+6%
Operating
investments
€3 2 5 m
+9%
(1) On a constant consolidation scope and currency basis.
Major s t r ateg ic
pr ior it ies
Pursue value creation strategy.
Develop production capacities
to ensure sustainable growth.
Further improve efficiency
of distribution in key markets.
48 • 49
LVMH 2019 . Wines & Spirits Our Maisons take action
Bold Woman Award, encouraging generations of women
to be bolder!
“We want to incite women to dare,
assert themselves and reach for the
stars, and that’s what drives us to
keep doing more: not only will we
continue to publish our barometer
and monitor changes, but we will
also roll it out in other countries.
We aim to take our commitment
to another level, giving due
recognition to the women, and
the men, taking action. They are
the inspiring, highly skilled ‘role
makers’, who strive to encourage
women to forge their own destinies
and inspire future generations
in turn… and we’re sure that
Madame Clicquot would approve!”
JEAN-MARC GALLOT,
Chairman and CEO of Veuve Clicquot
The story of Veuve Clicquot is a
27 countries. On November 14, 2019,
story of daring, creativity and entre-
it went to Chrystèle Gimaret, Founder
preneurship. Madame Clicquot took
and CEO of Artupox International.
the reins of the Maison after her
Veuve Clicquot also awarded the
husband passed away in 1805, even
Bold Future Award, previously
though, at that time in France,
known as the Prix Clémentine, to
women could not work or hold a
Julie Chapon, Cofounder of Yuka.
bank account. She had to overcome
The Maison presented Frédéric Mion,
significant hurdles before finally
Director of Sciences Po university,
gaining the respect of her peers and
with the Bold Champion Award, cre-
being dubbed “the great lady of
ated this year to recognize men who
Champagne”. She was a bold woman
work tirelessly to encourage better
with big dreams — she saw her Mai-
representation and consideration for
son crossing frontiers and famously
women in society.
said: “I want my brand to rank first,
For the first time, Veuve Clicquot also
from New York to Saint Petersburg”
unveiled an international barometer
(Madame Clicquot, 1831).
of female entrepreneurship in 2019
In 1972, to celebrate its 200th anni-
– prejudices, mental and structural
versary, the Maison created an award
barriers to be lifted and how to over-
– the Veuve Clicquot Business
come them. The survey showed that
Woman Award, now renamed the
there are still too many of these
Bold Woman Award – as a tribute to
barriers preventing women from ful-
this very audacious lady. For fifty
filling their entrepreneurial ambi-
years, the Maison has been reward-
tions. With this barometer, Veuve
ing and spotlighting business women
Clicquot is reasserting its commit-
who have built up, taken on or devel-
ment to business women and hop-
oped a business. Since its launch, it
ing to inspire generations of women
has been presented to 350 women in
to dare to be ever bolder.
At a glance
2019 Review
Excellent global momentum
The Wines & Spirits business continued to pursue its value strategy based on a
strong innovation policy, while accentuating its environmental and societal com-
mitment. The different regions contributed in a balanced way to its growth.
Champagne was driven by the faster growth of prestige cuvées and by its price
increase policy. Hennessy cognac, which recorded good growth, became the
world’s leading premium spirits brand. The American market saw a normalization
in stock levels at the distributors at the end of the year, while China continued its
rapid progress linked notably to the timing of Chinese New Year. The acquisitions
in 2019 of Château du Galoupet and Château d’Esclans mark LVMH’s entry into
the promising market of high-quality rosé wines.
2020 Outlook
Excellence, innovation and careful attention to customers’ specific expectations in
each country will continue to support growth and value creation in the Wines &
Spirits business group in the coming months. In an uncertain business environment
where global demand is nevertheless increasingly oriented toward quality, LVMH’s
Maisons have major strengths. They will rely on their highly dedicated staff, their
innovative momentum and the strong appeal of their brands to continue securing
and sustainably building their long-term future. The diverse range of tasting and
hosting experiences the Maisons have built up, thanks to the strength of their crea-
tive, high-quality product portfolios, will help them adapt to new lifestyles and win
over the next generation of consumers. Moët Hennessy’s powerful and agile global
distribution network is a major asset, enabling it to react to changes in the eco-
nomic environment and seize every opportunity to increase market share. Increasing
production capacity remains a top priority, along with a very active sourcing policy.
As part of their long-term vision, all Maisons aim to step up their sustainability com-
mitment to protect the environment and preserve their expertise.
50 • 51
LVMH 2019 . Wines & Spirits 2 0 1 9 H I G H L I G H T S
The champagne houses enhanced their value
propositions in a particularly competitive market.
With volumes remaining virtually stable with respect
to the previous year, organic revenue growth was 4%.
The increased value was driven by more rapid growth
in prestige cuvées and a firm price increase policy.
Moët & Chandon consolidated its global leadership
position, celebrating the 150th anniversary of its
iconic Moët Impérial with a limited-edition bottle
and a highly memorable event at the Maison’s
Château de Saran, which reopened its doors after
several years of restoration. The success of its Ice
Impérial Blanc and Rosé cuvées, offering new tasting
experiences, illustrated the Maison’s ability to move
upmarket. Continuing to reaffirm its unique model,
Dom Pérignon achieved an exceptional performance
in all its markets. Since January 2019, Vincent Chaperon
has taken up the mantle of Richard Geoffroy – Dom
Pérignon’s cellar master since 1990 – after having worked
alongside him for 15 years. The year saw the launch
of the new Plénitude 2 1998 vintage and an artistic
collaboration with Lenny Kravitz for its Vintage 2008
and Rosé 2006. As the most-visited champagne house,
Mercier built on its tradition of generosity and
community by employing guides specially trained
in sign language.
Veuve Clicquot enjoyed a strong performance
among its pillars, Carte Jaune and Rosé, driven in
particular by the United States and Japan. Hailed
by critics, La Grande Dame 2008 continued its ascent
with a global marketing campaign launched at
the end of the year. Building on its commitment to
empower women entrepreneurs, the Maison
launched the “Bold by Veuve Clicquot” program.
Ruinart continued its growth with another record
year, driven by the excellence of its cuvées, in particular
its iconic Blanc de Blancs. The carte blanche given to
Brazilian artist Vik Muniz in 2019 to explore the world
of wine, as well as the launch of the Retour aux
Sources art installation in Reims, which is connected
to the living world and celebrates the beginning of
the countdown to Ruinart’s 300th anniversary in 2029,
once again illustrated the Maison’s commitment
to art and the environment.
Moët & Chandon
Krug confirmed its value-enhancing growth with
the introduction of its Krug Grande Cuvée
167e Édition and Krug Rosé 23e Édition, followed
by the launch of Les Créations de 2006. After serving
as Winemaking Director for 13 years, Julie Cavil
became the Maison’s Cellar Master in January 2020.
The Maison created the “Fonds K pour la Musique”
to support philanthropic projects.
Estates & Wines implemented a development
strategy for a portfolio of powerful brands serving
its key markets, the United States and China.
With its unwavering focus on quality, the Maison
won new awards in 2019. The acquisitions in 2019
of Château du Galoupet and Château d’Esclans
marked Moët Hennessy’s debut in the promising
market of very high-end rosé.
Chandon delivered an impressive performance,
in particular in the United States and Latin America.
Despite an uncertain economic environment, the Maison
achieved a strong rebound in Argentina with the launch
of its groundbreaking Chandon Apéritif, a highly
innovative product in its category. Continuing in their
quest for excellence in crafting sparkling wines,
Chandon’s six vineyards around the world took home
a flurry of awards from major international competitions.
–
A second herbicide-free year for Veuve Clicquot
In 2019, for the second year running, Veuve Clicquot
dispensed with weedkillers. The Maison is deeply
committed to sustainable winegrowing and started
its gradual transition to zero herbicides about ten years
ago. Veuve Clicquot has modified its wine-growing
practices, and notably introduced cover cropping
between the vine rows and mechanical tillage under
the vines. This technique has proved successful and
the Maison’s entire vineyard is now weeded using
mechanical methods.
Veuve Clicquot
52 • 53
LVMH 2019 . Wines & Spirits Hennessy confirmed its solid momentum in its key
markets: the United States, China and travel retail.
Organic revenue growth was 7%, with sales volumes up
6%. The Maison crossed the threshold of 8 million cases
and continued to extend its lead in emerging markets
(Africa and the Caribbean) thanks to the increase
in its flagship V.S, V.S.O.P and X.O qualities. This solid
performance added to its successful track record in
recent years, in particular 2018, when Hennessy became
the world’s leading premium spirits brand by value,
in addition to its longstanding title as the world leader
in cognac. The “Hennessy X.O – The Seven Worlds”
marketing campaign directed by Ridley Scott was one
of the luxury industry’s most-watched digital campaigns,
with more than 120 million views. This exposure had
a halo effect on Hennessy’s entire portfolio. The brand’s
constantly growing appeal was reflected in its higher
position in Interbrand’s ranking of the 100 best global
–
Hennessy helps its grape suppliers’ shift
to sustainable winegrowing
Hennessy is a sustainable winegrowing pioneer
and in 2019 it introduced a program to help its grape
suppliers adopt the same standards. The program
aims to ensure all its suppliers have the Cognac
environmental certification by 2025, and gradually
transition to zero herbicides by 2028. Hennessy
supports them by offering day-long training sessions
on the Cognac sustainable winegrowing standard
and by continuing its environmental audits. The Maison
also provides information and communication on
the subject. For example, some 1,000 partner suppliers
attended the Technical Forum on Sustainable
Winegrowing hosted at its Bataille property in May 2019.
Krug
Ruinart
brands. Hennessy continued to invest to prepare for
the future and ensure a constant level of excellence
in its cognacs, with the opening of seven wine cellars
in 2019 and the construction of a new packaging line
at its Pont Neuf site inaugurated in 2017, an exemplary
model of sustainable design.
Glenmorangie Company reinforced its position
in the single malt category, driven by growing global
demand for exceptional whiskies, and continued
investing in the extension of its two distilleries.
Glenmorangie and Ardbeg continued to win a number
of awards from professionals in the sector. Taking
a proactive environmental approach, the Glenmorangie
distillery worked with its partners to help restore
mussel and oyster beds in the Dornoch Firth.
Belvedere vodka continued to innovate with the
worldwide launch of Single Estate Rye Series of high-
end Polish rye vodkas. Through this initiative, for
which it won a number of awards for excellence from
prestigious international competitions, the Maison
showcased the importance of terroir in developing
the aromas and flavors of a vodka.
Volcán De Mi Tierra tequila achieved solid growth
in North America and prepared for its expansion
into new markets.
Woodinville Whiskey Company continued its
development in a number of US states. The distillery
prepared to increase its production to meet growing
demand and successfully launched its Port Finished
Bourbon. The Clos 19 e-commerce platform continued
to grow in the United Kingdom, Germany and the
United States. It enriched its range of exclusive
experiences, collaborations and limited edition products
while continuing to pursue its expansion strategy to
reach new markets.
Hennessy
54 • 55
LVMH 2019 . Wines & Spirits LVMH
Fash ion &
Leat her Good s
2019
A U N I Q U E
A S S E M B LY O F
C R E A T I V E T A L E N T
Louis Vuitton’s leadership around the world, the development of a collection
of exceptional brands whose success is consolidated year after year, and its
active support for young designers make LVMH a key player in the fashion and
leather goods industry.
New designers
Working with the best designers, while respecting the spirit of each brand, is
one of our strategic priorities. Our creative directors promote the Maisons’
identities, and are the artisans of their creative excellence and their
ability to reinvent themselves.
The right balance of iconic products and innovation
Since 1854, Louis Vuitton’s success has been built on the flawless execution of
its unique trunk-making expertise, its complete control over distribution and its
exceptional creative freedom, a source of perpetual renewal and innovation.
By ensuring the right balance between new releases and iconic leather goods
lines, the Maison continues to dazzle and surprise its customers, and to make
its stores ever more inspiring.
An engaged industry leader
LVMH has always been committed to supporting young designers and
up-and-coming talent. The LVMH Prize for Young Fashion Designers was cre-
ated to reaffirm this commitment. Each year, it recognizes one person’s out-
standing creative talent.
As a fashion industry leader, LVMH feels a duty to nurture the creative talent of
the future. It also feels a duty to ensure the well-being of the fashion models
who work for its Maisons. This belief resulted in its decision to draft the Charter
on Working Relations with Fashion Models and Their Well-Being.
Louis Vuitton
2019 REVENUE BY REGION
(in %)
Other
markets
9%
Asia
(excl. Jap an)
31%
Jap an
11%
France
8%
Europe
(excl. France)
23%
United States
18%
Revenue
€2 2 , 2 37 m
+17% (1)
Prof it f rom recu r ring
op erations
€7, 3 4 4 m
+24%
Number
of stores
2 ,002
+8%
Operating
investments
€1 , 19 9 m
+45%
(1) On a constant consolidation scope and currency basis.
Major s t r ateg ic
pr ior it ies
Continue to develop Louis Vuitton,
blending the timeless and
the modern, while preserving its
unmatched quality standards and
exclusive distribution channel,
which is unique worldwide.
Maintain the strong momentum
achieved by Christian Dior.
Reinforce the Maisons’ desirability
and profitable growth.
58 • 59
58 • 59
LVMH 2019 . Fashion & Leather Goods Our Maisons take action
Eye/Loewe/Nature, an eco-designed collection
In a first for Loewe, the Maison
Loewe also introduced a system of
launched Eye/Loewe/Nature in
sustainability ratings for each item in
2019, an outdoor menswear collec-
the collection: packaging scored
tion that was entirely eco-designed.
100%, leather goods 61%, and clothes
Loewe assessed the eco-friendliness
and footwear 53%.
of its suppliers’ products and pro-
And for each Eye/Loewe/Nature
cesses with a view to optimizing its
piece sold, Loewe donated €15 to
entire supply chain. Teams from all
Ambiente Europeo, a Spanish NGO
its departments – design, produc-
that combats plastic pollution. The
tion, marketing, communication, etc.
Maison will now use this experience
– were also trained, and coordina-
to apply eco-design across the board.
tion made working together simpler.
“We integrate Quality and
Sustainability in our business
model as a common ground of
our values: excellence, innovation,
passion and integrity, all along
the lifecycle of our products, from
the design till the end of life,
going through the sourcing of raw
materials, suppliers, production,
warehouse, shipping, retail and use.
Our strategy is to incorporate
sustainability as a source of new
opportunities that add more value
to our products, being more efficient
at using resources. That means
developing a corporate culture of
sustainability that will be an
advantage for the company in the
long term, improving continuously
our performance overall.”
PASCALE LEPOIVRE,
Chairman and CEO of Loewe
At a glance
2019 Review
Remarkable performances by Louis Vuitton and Christian Dior
Louis Vuitton continued to deliver an exceptional performance, to which all
businesses and all clientele contributed. Iconic lines and new creations contrib-
uted in a balanced way to revenue growth. The “Louis Vuitton X” exhibition in Los
Angeles successfully showed the Maison’s many artistic collaborations, and an
unprecedented partnership in e-sport was signed with the League of Legends
World Championship. The qualitative transformation of the distribution network
continued notably with the inauguration of the Louis Vuitton Maison in Seoul, for
which Frank Gehry designed a fantastic glass structure. Christian Dior has had a
remarkable year. Proof of the Maison’s unique influence was its exhibition at the
Victoria and Albert Museum in London which had record attendance of nearly
600,000 visitors. Very well received by customers, an exceptional boutique on
the Champs-Élysées in Paris took over from the historic address of 30 avenue
Montaigne while it is being renovated. Fendi’s highlight for 2019 was its final trib-
ute to Karl Lagerfeld, after a collaboration of 54 years. Celine gradually rolled out
its boutique concept and launched its first high-end perfumery collection. Loewe
delivered strong growth under the impetus of its designer JW Anderson. Loro
Piana, Rimowa and Berluti experienced good progress.
2020 Outlook
Driven by its talented designers, masterful craftspeople and deeply committed
teams throughout the world, Louis Vuitton will continue to enrich its fascinating
universe. Future developments will fit within the Maison’s steadfast aim of infusing
its exceptional heritage with the best of modernity, enthralling its customers and
offering them an ever-more-unique and innovative experience in its stores and
online. The quality-focused transformation of the retail network will continue. The
Maison will continue to reinforce its production capacity, with the opening in France
in the first half of the year of a new workshop at the heart of Vendôme, a town in
the Loir-et-Cher department with a rich history and leather-working tradition. With
staff guided by its core values of excellence and creativity, Christian Dior will con-
tinue its growth momentum, driven by the ongoing success of its collections, and
strategic store openings. Fendi will continue to innovate across all its product lines
and will finalize a number of ongoing projects aimed at enhancing its iconic stores,
preserving expertise and protecting the environment. Loro Piana will open a flag-
ship store in Tokyo and reinforce its presence in China. Drawing on its new impetus,
Loewe will aim to bolster its positioning and brand image, continue expanding its
retail network and boost its omnichannel performance.
60 • 61
LVMH 2019 . Fashion & Leather Goods 2 0 1 9 H I G H L I G H T S
Louis Vuitton delivered an exceptional performance,
driven by excellent momentum across all its product
lines. The year featured a wealth of developments and
creative collaborations, with revenue growth well
balanced between iconic lines and new creations.
While the Capucines model inspired new artists, giving
birth to the Artycapucines collection, the immersive
Louis Vuitton X exhibition in Los Angeles carefully
retraced the long tradition of collaboration with artists
and designers of all backgrounds that has shaped the
Maison’s history. In a show of its signature visionary
innovation, Louis Vuitton invented a futuristic canvas
that can display moving images on bags, and capped
off the year with a groundbreaking partnership
with an e-sport that has generated an unprecedented
level of interest. Associated as always with an iconic
location, Nicolas Ghesquière, Creative Director of
Womenswear, presented his Cruise collection at JFK
Airport’s legendary TWA Flight Center in New York.
Virgil Abloh breathed new life into the world of
menswear with the launch of the Louis Vuitton Staples
Edition line, which revisits men’s wardrobe essentials;
revisited a number of iconic leather goods models,
including the Steamer, designed in 1901; and held the
poetic runway show for his Spring/Summer 2020
collection on the Place Dauphine in Paris. The quality-
focused evolution of its retail network continued, the
main highlights of which were the inauguration of Louis
Vuitton Maison Seoul, for which Frank Gehry designed
a fantastic glass vessel echoing the Fondation Louis
Vuitton, and the reopening of the Maison’s New Bond
Street store in London, metamorphosized by architect
Peter Marino. The Maison continued to reinforce its
manufacturing capacity with the opening of a leather
goods workshop with BREEAM “Very Good”
environmental certification in the Maine-et-Loire
department of western France and the launch of
operations at a new workshop near Dallas in Texas.
Strengthening Louis Vuitton’s partnership with
UNICEF, which it has pursued for more than three
years to help the world’s most vulnerable children,
employee volunteers traveled to the sites of initiatives
to witness this work first hand and raise awareness
on social media.
Louis Vuitton
Christian Dior turned in solid growth in all its product
categories and all its regions. Creativity and timeless
elegance coupled with captivating runway shows and
events ensured the ongoing success of the Womenswear,
Menswear, Jewelry and Watch collections. Reaffirming
the Maison’s exceptional reach, the exhibition devoted
to it at the Victoria and Albert Museum in London was
a record-breaking success, drawing nearly 600,000
visitors. In Marrakesh, Maria Grazia Chiuri’s Cruise
collection – an homage to diversity – mixed African and
European cultures and expertise. In Paris and Shanghai,
where her ready-to-wear runway show was held, the
designer imagined an ode to nature, with the trees used
in the decor replanted afterward as part of a long-term
project. While the spirit of Haute Couture infused
the new 30 Montaigne leather goods line and the ready-
to-wear collection with the same name, the iconic
Lady Dior inspired new artists in Dior Lady Art #4. For
his Dior Essentials menswear collection, Creative Director
of Menswear Kim Jones designed a wardrobe that
reinterprets the essence and eternal modernity of the
Dior silhouette. The end of the year also saw the launch
of a luggage line created in collaboration with Rimowa
and unveiled at Dior’s Spring/Summer 2020 Menswear
runway show at the Arab World Institute in Paris.
The retail network continued to expand, including the
opening of an exceptional store on the Champs-Élysées
in Paris. Very well received by customers, it will take over
from the Maison’s historic location at 30 Avenue
Montaigne during its transformation.
For Fendi, 2019 saw the last runway show in homage
to Karl Lagerfeld, after 54 years of collaboration.
In a culmination of the tributes paid by the Maison to
this great designer, the 54 looks of the Haute Couture
collection The Dawn of Romanity were presented in July
on Palatine Hill, at the heart of the ruins of the Roman
Forum. Illustrating its wealth of creativity, the Maison
continued to pursue its partnerships with the world of
art and music. It saw strong growth in all its product
Dior
categories, driven by the ongoing success of its iconic
Peekaboo and Baguette lines, and by a daring capsule
collection, Fendi Prints On, designed in collaboration
with rap artist Nicki Minaj. Fendi opened new stores
in Monaco, China and Australia.
62 • 63
LVMH 2019 . Fashion & Leather Goods Loro Piana delivered solid growth, driven by the success
of its iconic Excellences raw materials, in particular
the vicuña wool collection. Its emblematic Essenziali
lines were expanded and saw very strong momentum.
Footwear turned in an excellent performance,
boosted by the development of a bespoke service
and the launch event for the opening of a pop-up
store in New York’s Meatpacking District. “Cashmere
– The Origin of a Secret”, the first film in a trilogy
directed by Luc Jacquet, celebrates the nobility and
excellence of Loro Piana’s iconic materials.
The first collections designed by Hedi Slimane for
Celine were launched in stores, with the new store
concept being gradually rolled out. The runway shows,
which reflected the Maison’s new identity, were very well
received. Hedi Slimane revived the fashion house’s
perfume-making tradition with eleven fragrances that
distill French high perfumery expertise. A Celine store
devoted to high perfumery was opened on Rue
Saint-Honoré in Paris. The Maison also strengthened
its foothold in Italy with a new leather goods workshop
in Tuscany, designed to the highest standards for
sustainable development.
Loewe achieved excellent growth and met a key
milestone in its development. Under the aegis of its
Creative Director, Jonathan Anderson, the Maison
accelerated its innovation process, enhanced its brand
exposure and made its product range and its various
points of customer contact more consistent with its
clientele. Key initiatives included the launch of very
successful products like the Lazo and Cushion Tote
bags, the new Paula’s Ibiza and Eye/Loewe/Nature
capsule collections, and the ready-to-wear and
accessories collection inspired by the enchanting art
of William de Morgan. Significant improvements
were also made to the retail network, with openings
and extensions of Casa Loewe stores in London,
Beijing, Tokyo and Madrid.
For Givenchy, the year featured the return of a strong
new menswear collection, presented in Florence
in June; another initiative, the Givenchy Atelier collection,
showcased Haute Couture techniques and expertise
through ready-to-wear pieces reinterpreting
the Maison’s historic motifs.
Celine
Kenzo continued its growth and stood out in
accessories with the launch of the Tali bag. In July
the Maison announced the arrival of Felipe Oliveira
Baptista as Creative Director, following eight years
with Humberto Leon and Carol Lim at the helm.
A significant expansion of the retail network took
place, with stores returning to direct operation in
China and the first openings in the United States.
Berluti achieved a good performance, which was
especially strong in Japan and China. Kris Van
Assche’s first two runway shows and the store debut
of his collections were very well received. A focus
on the Maison’s heritage inspired the design of its new
logo as well as an emphasis on its Scritto motif and
its art of patina. Ready-to-wear and new items like
the Gravity, Stellar and Shadow sneakers sold very well.
Berluti continued the selective expansion of its store
network and launched its e-commerce site in Japan.
Rimowa delivered an excellent performance,
boosted by major innovation: the Essential luggage
line added four new colors for its fully monochrome
suitcases. An innovative combination of anodization
techniques also allowed high-intensity pigments to
be integrated into the aluminum core of the Original
model’s exterior, creating two vibrant, modern new
colors for this iconic model. The Maison continued
its creative collaborations, in particular with artists
Daniel Arsham and Alex Israel, the label Supreme for
a second time, and with Christian Dior for the Dior X
Rimowa capsule collection designed with Kim Jones.
Marc Jacobs launched the new The Marc Jacobs line,
which offers contemporary wardrobe essentials,
while new features were introduced to its line of bags.
Fenty Couture, created in collaboration with singer
Rihanna, launched its website in May and opened
a series of pop-up stores.
Patou, acquired by LVMH, welcomed Guillaume Henry
as Creative Director and unveiled its first ready-to-wear
collection in September.
Berluti
64 • 65
LVMH 2019 . Fashion & Leather Goods LVMH
Per f u mes &
Cosmet ics
2019
F O C U S I N G
O N Q U A L I T Y A N D
C U L T I VA T I N G
O U R U N I Q U E N E S S
LVMH is a key player in the perfume, makeup and skincare sector, with a port-
folio of world-famous established names as well as younger brands with a
promising future. The exceptional momentum of LVMH’s Maisons is driven by
growth in its flagship lines as well as bold new products. They are all driven by
the same values: the pursuit of excellence, creativity, innovation and control of
their brand image.
Consistent market share gains
With surging demand in Asia and the huge popularity of makeup and skincare
among younger generations, the global perfume and cosmetics market is
highly competitive and features shorter and shorter innovation cycles. In this
context, all of LVMH’s Maisons continue to pursue their objective of gaining
market share, which depends more than ever before on quality, product per-
formance and a robust innovation policy. In the heart of France’s Cosmetic
Valley business cluster, researchers at LVMH’s Hélios R&D facility play a crucial
role in helping the Maisons meet these requirements.
Excellence and innovation in retailing
All brands are accelerating the implementation of their online sales platforms
and stepping up their digital content initiatives. Excellence in retailing is key,
requiring expertise and attentiveness from beauty consultants, as well as innova-
tion at points of sale. Our brands are actively incorporating digital tools to
enhance the customer experience and attract new consumers.
Parfums Christian Dior
2019 REVENUE BY REGION
(in %)
Other
markets
10%
Asia
(excl. Jap an)
40%
Jap an
5%
France
10%
Europe
(excl. France)
20%
United States
15%
Revenue
€6, 8 3 5 m
+9% (1)
Prof it f rom recu r ring
op erations
€68 3 m
+1%
Number
of stores
4 26
+20%
Operating
investments
€37 8 m
+15%
(1) On a constant consolidation scope and currency basis.
Major s t r ateg ic
pr ior it ies
Maintain our creativity in innovation
and communications.
Focus on developing
Parfums Christian Dior in harmony
with Couture.
Pursue the global expansion
of our other brands.
68 • 69
68 • 69
LVMH 2019 . Perfumes & Cosmetics Our Maisons take action
Guerlain unveils Bee Respect, its transparency
and traceability platform
In April 2019, Guerlain made Bee
Originally, Bee Respect was an
public – Guerlain is the first perfume
Respect public so everyone can
in-house tool created to encourage
and cosmetics Maison to do this –
now consult this digital platform to
collaborative eco-design. The plat-
and enabling totally transparent
learn more about the Maison’s prod-
form helped employees better
access to information about its prod-
ucts: their raw materials, suppliers,
understand product life cycles and
ucts, Guerlain continues to enhance
manufacturing sites, transport-re-
inspired the teams and different
the customer experience of today’s
lated carbon footprint through to
businesses to follow good examples
increasingly proactive consumers.
the point of sale, and more.
set by their colleagues. By making it
At a glance
2019 Review
Excellent growth of flagship brands and rapid progress in Asia
Christian Dior continued to grow much faster than the market. In addition to the
strength of its iconic perfumes J’adore, Miss Dior and Sauvage, makeup and skin-
care contributed significantly to the excellent performance of the Maison.
Guerlain’s growth accelerated and the brand enjoyed particularly good momen-
tum with the success of Abeille Royale in skincare and Rouge G in makeup.
Parfums Givenchy achieved another year of strong growth thanks to its makeup
and its L’Interdit perfume. Fresh, Fenty Beauty by Rihanna and Acqua di Parma
grew rapidly.
2020 Outlook
In a competitive environment, the Perfumes & Cosmetics business group will main-
tain its goal of gaining market share, leveraging the complementarity and dyna-
mism of its brand portfolio. The Maisons will continue to focus on their top growth
drivers: ensuring excellence in their products, accelerating their innovation policy,
marketing and promoting digital activation. Parfums Christian Dior will innovate
heavily in all its product categories. Skincare will see a major breakthrough with
the relaunch of the anti-aging collection around the flagship Capture Totale Super
Potent Serum product and more rapid growth in premium skincare with Prestige
and its leading product, MicroHuile de Rose. Fragrances and makeup will be boosted
by powerful initiatives focused on flagship lines. The Maison will also continue
expanding its store network and its digital presence. Guerlain will continue to grow
in China, France and travel retail, its key markets, while developing in Japan. Its flag-
ship lines will benefit from an ambitious innovation and activation plan across all its
product categories. The Abeille Royale skincare line will celebrate its 10th anniver-
sary. Parfums Givenchy will enrich its fragrance range and continue expanding into
makeup with major innovation in foundation. Parfums Kenzo will celebrate the 20th
anniversary of its iconic Flower by Kenzo. Benefit will innovate with a mascara featur-
ing unique technology. Fresh will continue making inroads in Asia and will focus
marketing on its innovative moisturizing Super Lotus skincare line. At Make Up For
Ever, the relaunch of Rouge Artist will be backed by a new marketing campaign.
Fenty Beauty by Rihanna will expand its line of eye makeup. Acqua di Parma will
launch a 100% natural cologne. Maison Francis Kurkdjian will continue the highly
selective expansion of its retail network.
70 • 71
LVMH 2019 . Perfumes & Cosmetics 2 0 1 9 H I G H L I G H T S
Parfums Christian Dior continued to achieve
market-beating growth, consolidating its leading
position. With an unwavering focus on excellence and
creativity in its products, the Maison was buoyed
by the vitality of its flagship lines and the success of
its innovations. In addition to the gradual rollout of Joy
– the third-best-selling fragrance worldwide – the
performance of women’s fragrances was boosted
by iconic lines: with its new Eau de Toilette version,
Miss Dior consolidated its lead in Asia, and the ever-
popular J’adore continued to grow. The Sauvage men’s
fragrance maintained its exceptional momentum in all
regions and amplified its global leadership attained
in 2018 with the launch of its Intense version. Maison
Christian Dior confirmed its potential. Central to each
of its fragrances, the Maison’s roots in Grasse – the
perfume capital of the world and an exceptional setting,
with its fields of flowers used in perfume-making and
its Master Perfumer’s fragrance laboratory – enhanced
Parfums Christian Dior
the Maison’s appeal. Makeup was boosted by the
continued success of the Maison’s Rouge Dior lipstick
and its latest versions, as well as the new Dior Addict
Stellar Shine. Other highlights included the momentum
of its Forever foundation and growth in the Dior
Backstage range, inspired by products used at fashion
shows and widely shared on social media. Growth
in skincare was driven by Asian markets and by strong
demand for premium products. Prestige, whose
core range continued to expand, achieved strong
growth through its new MicroLotion de Rose and
the continuing success of MicroHuile de Rose.
Guerlain accelerated its growth and delivered
an excellent performance. The Orchidée Impériale
and Abeille Royale skincare lines, firmly backed by
Guerlain’s commitment to biodiversity and sustainable
design, continued their exceptional growth. Aqua
Allegoria, a collection of fresh fragrances that magnify
the most beautiful raw materials, was a major success.
Makeup was buoyed by the Rouge G lipstick and
the new L’Essentiel foundation. Building on 12 years
of its “In the Name of Beauty” environmental and social
commitment, the Maison took this engagement a step
further in 2019, launching a transparency and
traceability platform for its creations and signing
Parfums Christian Dior
a partnership with UNESCO to create new beekeeping
supply chains, thereby helping repopulate bee colonies
around the world. Guerlain’s commitment was
illustrated by a film and inspired a groundbreaking
online and TV media campaign.
Parfums Givenchy saw another year of strong revenue
growth, with very impressive performance in China
and in travel retail. The main drivers of this growth
were its Le Rouge lipstick line and Prisme Libre powder.
The Maison was also boosted by the major success
in Europe of its new fragrance, L’Interdit, an iconic scent
created in 1957 as an homage to Audrey Hepburn, and
whose current brand ambassador is actress Rooney Mara.
At Kenzo Parfums, the momentum of Flower by
Kenzo was spurred by a new version: Flower by Kenzo
Eau de Vie.
–
Guerlain holds third edition of Bee University
at UNESCO headquarters in Paris
To mark the International Day for Biodiversity
in May 2019, Guerlain held the third edition
of its Bee University program, part of UNESCO’s
Man and the Biosphere conferences (MAB).
Since 2017, the Bee University has brought
the world’s top specialists together to discuss
the reasons for and consequences of the
disappearance of bees and to share the most
innovative ways of stemming the crisis.
Parfums Givenchy
72 • 73
LVMH 2019 . Perfumes & Cosmetics Benefit bolstered its position in the United States and
the United Kingdom with growth in its brow collection,
in particular its flagship Gimme Brow and Precisely
products, along with the success of its brow bars.
Fresh achieved solid growth, with very strong momentum
in China, where its products – which combine natural
ingredients and traditional rituals with cutting-edge
scientific advances – generated major demand. The
Maison strengthened its position in premium skincare
with Crème Ancienne, a modern reinterpretation of
a centuries-old formula, and in the essence category
with the Black Tea Kombucha anti-pollution lotion.
Online sales in particular were up significantly.
Make Up For Ever successfully launched its long-lasting
concealer within its flagship UltraHD range and its
Reboot foundation, which corrects signs of fatigue.
Confirming its global success, Fenty Beauty by Rihanna
began its expansion in Asia. The brand added new
categories – including concealers available in 50 different
shades, gloss and bronzers – and continued to shine
on social media.
–
The fifth edition of Bold Is Beautiful, Benefit Cosmetics’
philanthropy project
Benefit Cosmetics started the Bold Is Beautiful project
in 2015 to empower women through education,
access to wellness and financial independence. In 2019,
21 countries took part in this campaign, which has
raised over €15 million since its launch by donating
the proceeds from the Benefit Brow Bar brow waxes
to charities. This year, Malaysia joined the program
through Women:girls, a charity that helps women
rebuild their self-confidence and encourages young
girls to become agents of change.
Parfums Christian Dior
Acqua di Parma’s highlights of 2019 included the
reopening of its iconic Milan store with a new concept,
the creation of a new range of home fragrances
and scented candles, and the launch of its Signature
of the Sun fragrance collection.
Perfumes Loewe renewed its visual identity for
a more youthful image and a more international audience.
The Loewe 001 fragrance was an unprecedented
success in China.
Maison Francis Kurkdjian continued its robust growth,
buoyed by the success of its Baccarat Rouge 540
fragrance and by the launch of Gentle Fluidity, two
different scents crafted using the same ingredients.
Ole Henriksen pursued its development in the United
States. The brand continued to win over young
Americans with its Banana Bright range and was very
popular on social media.
–
Sustainable lotus plant sourcing for Fresh
Fresh strives to reduce the environmental impact
of manufacturing its treatments and perfumes as
much as possible. For example, the Maison has set up
a sustainable supply chain of Super Lotus for its creams.
The lotus plants it uses for this ingredient are sourced
from a traceable, organic, short supply chain. To keep
transport to a minimum, the lotus plants are pressed
onsite at the farm thanks to the use of a mobile lab.
The leftover product is composted and returned straight
to the soil as fertilizer to preserve the ecological balance.
Lastly, no solvents, chemicals or water are used
in the extraction process.
Guerlain
74 • 75
LVMH 2019 . Perfumes & Cosmetics LVMH
Watches &
Jewel r y
2019
C R E A T I V I T Y
A N D I N - D E P T H
E X P E R T I S E
The LVMH Watches & Jewelry business group is one of the most dynamic
players in its sector. It continues to gain market share with a successful strat-
egy that is driven by jewelry Maisons that carry on exceptional creative
legacies and expertise, and by leading watchmaking Maisons that are always
on the cutting edge of innovation.
Creativity, brand awareness and in-depth expertise
The growth of these Maisons is driven by their creativity. They enrich leading
product ranges with well-established designs and identities, such as Bvlgari’s
iconic Serpenti range and TAG Heuer and Hublot’s famous Carrera and Big
Bang collections. They continually explore new horizons with innovations that
combine audacity with excellence, as illustrated by TAG Heuer’s next-genera-
tion smartwatch. Harnessing expertise is a key priority, which the Maisons
address by optimizing their manufacturing processes, implementing synergies
and boosting their production capacity. Developing brand awareness with
target audiences and increasing their presence on social media are also crucial
to gaining new market share.
High-quality, productive retailing
Lastly, the business group is focusing on the quality and productivity of its
retail networks and on developing its online sales. Multi-brand retailers are
selected very carefully in order to ensure its high standards are met. In an
equally selective approach, the Maisons also continue to refurbish and open
their own stores in buoyant markets in key cities.
Bvlgari
2019 REVENUE BY REGION
(in %)
Other
markets
14%
Asia
(excl. Jap an)
38%
Jap an
12%
France
5%
Europe
(excl. France)
23%
United States
8%
Revenue
€4 ,4 05 m
+3% (1)
Prof it f rom recu r ring
op erations
€7 3 6 m
+5%
Number
of stores
4 57
+7%
Operating
investments
€2 96 m
–2%
(1) On a constant consolidation scope and currency basis.
Major s t r ateg ic
pr ior it ies
Reinforce our Maisons’ desirability
thanks to expert craftsmanship
and distribution.
Continued growth of Bvlgari
and of TAG Heuer
with innovative products.
Optimally reinforce
manufacturing facilities.
78 • 79
LVMH 2019 . Watches & Jewelry Our Maisons take action
Bvlgari celebrates ten years of par tnership
with Save the Children
In 2009, Bvlgari joined forces with
with a red ruby. This necklace is the
Save the Children to help vulnera-
latest addition to the sterling silver
ble children all over the world, pri-
Save the Children collection, part of
marily by giving them access to
whose sales proceeds is donated to
education. In 2019, the two partners
the organization.
celebrated ten years of initiatives
To mark their ten-year partnership,
which helped over 1.5 million chil-
Bvlgari and Save the Children also
dren build a better future. Since its
inaugurated the first “Punto Luce
launch, the partnership has raised
delle Arti” in early November. The
nearly €80 million and 300 celebri-
“Punto Luce” are care centers cre-
ties have contributed their support
ated by Save the Children in disad-
to its initiatives.
vantaged neighborhoods in Italy to
The #GiveHope campaign recently
help combat exclusion and poverty,
unveiled by Bvlgari and shot by Brit-
and stop children dropping out of
ish fashion photographer Rankin,
school. The first “Punto Luce” built
features several celebrities including
with support from Bvlgari is distinc-
Lily Aldridge, Ursula Corbero, Alicia
tive because it uses art and creativ-
Vikander, Michael Fassbender and
ity to help the youngsters. It is a place
Eva Green. They all pose wearing
where they can acquire knowledge
the same Bvlgari High Jewelry crea-
and skills in cinema, photography
tion: a silver and onyx pendant set
and design.
“Ten years ago, when we partnered
with Save the Children, we had
the ambitious dream of helping
millions of children build a better
future through the power of
education. A dream, like a precious
jewelry design, starts as a figment
of the imagination. Nearly a decade
has passed, and we are proud that
this dream has become a reality
thanks to our dedication alongside
Save the Children. Together we
have empowered over one million
children to think big. Now,
we hope to do even more. We are
intensely ambitious, hugely
hopeful, totally committed and
absolutely determined to make
more dreams come true. A dream
is eternal when it becomes reality.”
JEAN-CHRISTOPHE BABIN,
Chairman and CEO of Bvlgari
At a glance
2019 Review
Strong growth at Bvlgari and continued repositioning of TAG Heuer
Excellent momentum in jewelry generated market share gains and was a major
growth driver for the Watches & Jewelry business group. The agreement with
Tiffany & Co was a strategic highlight of the year. Bvlgari continued to perform very
well and to strongly increase its market share. High jewelry and the iconic lines
Serpenti, B.Zero1 and Diva’s Dream were enriched with many new products and the
Fiorever collection, launched at the end of 2018, combining flowers and diamonds,
contributed significantly to growth. In watchmaking, the Serpenti Seduttori watch
was exceptionally well received. Chaumet’s growth was driven by the success of its
iconic collections. In early 2020, the Maison will inaugurate its completed renovated
iconic site on Place Vendôme. As distribution evolves rapidly within the watchmak-
ing sector, TAG Heuer continued to work with its partners to provide an increas-
ingly selective and efficient distribution network, while pursuing its creative
resurgence. Hublot recorded strong growth, driven by the Classic Fusion, Big Bang
and Spirit of Big Bang lines. The first LVMH Watch exhibition at the Bvlgari Hotel in
Dubai was a great success.
2020 Outlook
Against a backdrop of persistent geopolitical uncertainties, the Watches & Jewelry
business group will maintain its ambition of gaining market share and its rigorously
targeted investments. Thanks to their talented artisans and their powerful innovation
capacity, the watches and jewelry Maisons will continue to renew and enrich their
iconic lines while launching new collections, with an unwavering focus on creativity
combined with excellence in their products and their supply chains. They will con-
tinue to raise their brand exposure in key regions throughout the world and online
through events and selective partnerships. The same selective approach will be
taken in the ongoing development of their retail networks. Bvlgari will open its new
Parisian flagship store on Place Vendôme, and will continue expanding its network
in China. Hublot will bolster its presence in China, Australia and the United States. TAG
Heuer will celebrate its 160th anniversary in 2020. A new version of its smartwatch
will be unveiled and new models will enrich the Carrera line. In early 2020, Chaumet
will inaugurate its fully renovated iconic location on Place Vendôme and will continue
rolling out its new store concept. The beginning of the year will also feature the first
exhibition of LVMH’s Swiss watchmaking Maisons at Bvlgari Resort Dubai, a new
platform to raise brand awareness in addition to the Basel watch trade show. Lastly,
the highlight of 2020 will be the arrival of the prestigious Maison Tiffany, which will
substantially bolster the business group’s standing in a very dynamic, highly prom-
ising market segment.
80 • 81
LVMH 2019 . Watches & Jewelry 2 0 1 9 H I G H L I G H T S
Bvlgari maintained its impressive momentum and
continued to gain market share. Jewelry was boosted
by the Maison’s creative energy and international
reach. Its iconic Serpenti, B.Zero1 and Diva’s Dream lines
were enriched with a number of new pieces, and
the Fiorever line, launched in late 2018, combining
flowers and diamonds, was a significant growth driver.
The 20th anniversary of the B.Zero1 ring – whose
design was inspired by the geometry of the Colosseum
in Rome – was celebrated by an exhibition in Milan
and the creation of new versions of rings and bracelets.
The Cinemagia high jewelry collection, presented
at events held in a number of cities around the world,
illustrated Bvlgari’s creativity and unique expertise,
as well as its ties to the silver screen. In watchmaking,
a new watch casing manufacturing facility was
inaugurated in the Jura canton of Switzerland. The
Octo Finissimo Chrono GMT and Serpenti Misteriosi
Roma models won two new prizes at the Grand Prix
d’Horlogerie de Genève awards ceremony. The Serpenti
Seduttori watch, launched during the summer, was
Bvlgari
–
Bvlgari pledges more support to preserve Rome’s
cultural heritage
Bvlgari’s history cannot be separated from that of its
home city, Rome. That is why the High Jewelry Maison
has supported the preservation of the eternal city’s
cultural and architectural heritage since 2014. After
helping the restoration of the Spanish Steps, which
reopened in 2016, Bvlgari announced support for
another large-scale project this year: the restoration
of the Area Sacra. This archaeological site in Largo
Argentina square comprises four Roman temples
dating back to the 4th and 2nd centuries BC, as well
as a tuff base which was part of Pompey’s Curia,
where Julius Caesar was assassinated. Thanks to
Bvlgari’s financial support, this historical location
will be able to welcome visitors at last.
immediately very well received. Leather goods had
several highlights, with the launch of the Serpenti
Through The Eyes of Alexander Wang bag in New York
and the Fujiwara capsule collection in Tokyo.
An exhibition held at Castel Sant’Angelo in Rome
presented a remarkable retrospective of the Maison’s
jewelry creations alongside Haute Couture dresses.
Plans to improve the store network continued, with
renovations in Monaco, Macao, Melbourne, Taipei
and Toronto, and openings in Ibiza, Copenhagen and
Le Bon Marché in Paris. A number of pop-up stores
rounded out and energized the network. Already a
certified member of the Responsible Jewellery Council,
Bvlgari drew up a due diligence program in 2019
for responsible diamond sourcing. The Maison aims
to share these criteria with its diamond suppliers,
in line with the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-
Affected and High-Risk Areas.
TAG Heuer continued expanding its flagship Carrera,
Aquaracer and Formula 1 lines with new models and
special series. New pieces included the Carrera Calibre
TAG Heuer 02T Nanograph, which features a carbon
spiral, one of the Maison’s cutting-edge innovations.
A Golf version rounded out its range of smartwatches.
TAG Heuer celebrated the 50th anniversary of the iconic
Monaco with limited editions and the creation of
50 exclusive box sets reserved for the brand’s most
–
Bvlgari reduces its Swiss workshop’s carbon footprint
Bvlgari replaced the old oil-fired boiler with a biomass-
fired heating system at its Saignelégier workshop
in Switzerland. The site is now heated with renewable
energy (wood pellets). The project, which was
supported by the LVMH Carbon Fund, will considerably
reduce the site’s carbon footprint, cutting its CO2
and greenhouse gas emissions by 9.63 metric tons
and over 63% respectively.
TAG Heuer
82 • 83
LVMH 2019 . Watches & Jewelry devoted collectors. The store network saw renovations
and openings, in particular in Tokyo, Shanghai, Moscow,
Madrid and Toronto. In parallel, the Maison is continuing
the work initiated with its retail partners to ensure
an increasingly selective presence and enhanced
commercial impact. TAG Heuer’s team of brand
ambassadors and its sports contracts have helped
build brand awareness among target customers and
develop its very active social media presence. This
year, the Maison strengthened its ties with the Formula
E championship, of which it is a founding partner,
with the new TAG Heuer Porsche Formula E Team.
The Maison also set up a partnership with NGO Wasser
für Wasser (Water for Water) to help finance projects
promoting access to clean water around the world.
Hublot continued to achieve strong growth, driven by
its Classic Fusion and Big Bang lines, with Spirit of Big
Bang – now the brand’s third core collection – also
contributing to its success. In each product line, original
and highly technical new models illustrated the art of
fusion, a core component of the Maison’s identity, and
its bold creativity. These creations included the MP11
Power Reserve 14 Days Green SAXEM model, which
combines technical and aesthetic innovation, featuring
a case made of SAXEM: a vivid green, extremely
–
TAG Heuer joins forces with Wasser für Wasser
In 2019, TAG Heuer made an annual donation
to the NGO Wasser für Wasser, to finance its
access-to-drinking-water projects around the world.
In return, the non-profit helped TAG Heuer provide
all its employees at the Maison’s headquarters and
production sites with metal bottles to replace
the disposable plastic containers. Thanks to this
initiative, TAG Heuer avoided the purchase of an
annual 50,000 plastic bottles, 30,000 plastic water
cups and 200,000 plastic coffee cups which were
also removed and replaced with reusable cups.
Hublot
brilliant and resistant material never before used in
watchmaking. New stores opened in Hong Kong,
Monaco and Rome reinforced the network of directly
operated stores, the number-one driver of revenue
growth. Hublot’s brand awareness was boosted by a
marketing strategy combining prestigious partnerships,
a strong digital presence, and sports and cultural
events. In 2019, the Maison gained exposure through
the Women’s World Cup, for which it served as
the official timekeeper.
While continuing to develop its iconic Chronomaster,
Pilot and Elite collections, Zenith completed the launch
of its Defy line with the Inventor model. The Maison
celebrated the 50th anniversary of its legendary
El Primero movement. It continued to consolidate its
organization while leveraging synergies offered by
LVMH’s other watchmaking Maisons.
Chaumet’s growth was driven by its iconic Liens,
Joséphine and Bee My Love collections. Each one was
enriched with new creations: engagement ring versions
of Splendeur Impériale and Éclat d’Éternité, Bee My
Love necklaces and new models of Liens d’Amour and
Jeux de Liens. A brand new watch line, Boléro, was also
launched during the year. With its Les Ciels de Chaumet
high jewelry collection, the Maison showcased its
creativity and the virtuosity of its artisans, while
celebrating its eternal ties to the world of art. At the
Grimaldi Forum in Monaco, the Chaumet in Majesty
exhibition – which retraces the history of the jewels
of sovereigns since 1780 – featured rare pieces on loan
from museums, wealthy families and royalty, some
of which were shown for the very first time in public.
The historic Place Vendôme location underwent
renovation work. New stores were opened in Madrid,
Monaco and Seoul.
Fred’s Force 10 line and its new 8°0 collection were its
main growth drivers. The Maison opened stores in
Sydney, Taipei and Shanghai.
On November 25, 2019, LVMH announced that it had
entered into an agreement with the iconic American
jewelry Maison Tiffany, with a view to its acquisition.
The transaction is expected to close in mid-2020.
Zenith
Chaumet
84 • 85
LVMH 2019 . Watches & Jewelry LVMH
Selec t ive
Reta i l i n g
2019
R E I N V E N T I N G
T H E C U S T O M E R
E X P E R I E N C E
Our Selective Retailing Maisons, which are present worldwide, have custom-
er-centric strategies and customer-focused teams. Sephora, DFS and Le Bon
Marché are all pioneers in their fields and continue to innovate and imagine the
shopping experience of the future for their customers.
An increasingly innovative and personalized experience
For more than 50 years, Sephora has been revolutionizing the beauty industry
by transforming the simple act of buying into a moment of pleasure and free-
dom, developing new in-store services and hunting out gems to add to its
unique range of brands and products. Combining the strengths of in-store and
online shopping, the brand has designed an omnichannel beauty experience
that offers an interactive, personalized and seamless purchasing process. Le
Bon Marché is a department store like no other. Its stunning architecture,
enhanced by tasteful updates; its exclusive, elegant selection of goods; and its
rich program of exhibitions all make Le Bon Marché truly unique and a treasure
trove for both local and international customers. Our “24S” digital platform,
which was launched in 2017, reflects this quest for excellence and aims to offer
a whole new online shopping experience.
Staying particularly agile
DFS – which has been pioneering travel retail since the early days of the air
travel boom – constantly updates its boutiques and its T Galleria department
stores to continually enhance the traveler’s experience. In addition to its
major presence in Asia and in the United States, DFS has started to expand
its geographic coverage, opening its first European location in Venice in 2016
and in Paris in 2020.
Sephora
2019 REVENUE BY REGION
(in %)
Other
markets
14%
Asia
(excl. Jap an)
27%
Jap an
2%
France
11%
Europe
(excl. France)
9%
United States
37%
Revenue
€14 , 7 91 m
+5% (1)
Prof it f rom recu r ring
op erations
€1 , 3 95 m
+1%
Number
of stores
2 ,01 1
+4%
Operating
investments
€6 59 m
+23%
(1) On a constant consolidation scope and currency basis.
Major s t r ateg ic
pr ior it ies
Maintain Sephora’s innovative
momentum in stores and
digital content.
Continue to cultivate a creative,
exclusive offering at Le Bon Marché
and La Grande Épicerie de Paris.
Pursue the expansion of DFS
and develop digital marketing
initiatives to get closer to
international travelers.
88 • 89
LVMH 2019 . Selective Retailing Our Maisons take action
Sephora’s US stores are 100% green powered
All of Sephora’s stores and distribu-
emissions. It has also taken meas-
tion centers in the United States, as
ures to optimize energy consump-
well as its San Francisco headquar-
tion. For example, it has fitted its
ters, have been 100% green-energy
stores with LED lighting, introduced
powered since the fall of 2019. That
smart energy management devices
has been achieved thanks to the
and equipped all its new retail out-
Maison’s long-standing efforts to
lets with eco-friendly heating and
develop sustainable solutions.
air-conditioning systems.
The transition to renewable ener-
In 2020, Sephora will continue these
gies is one of the Sephora’s main
efforts and install solar panels at its
ways of cutting its greenhouse gas
new distribution center in Las Vegas.
“We aspire to create the most loved
beauty community in the world.
This means we have a responsibility
to help build a better society,
which is why I want Sephora to
be a benchmark on environmental
performance. New technologies,
equipment and eco-friendly
materials are being introduced
all the time and impact every aspect
of our business – architecture, store
operations, logistics, products, etc.
Environmental responsibility brings
us a fantastic opportunity to show
our disruptive spirit thanks to
creative and innovative initiatives.
It’s embedded in our DNA!”
CHRIS DE LAPUENTE,
Chairman and CEO of Sephora
At a glance
2019 Review
Strong growth at Sephora and good resilience at DFS
Sephora is experiencing strong growth and continues to gain market share.
Growth was particularly strong in Asia and the Middle East. Online sales grew
rapidly throughout the world. Its distribution network continued to grow with
more than one hundred new stores and the renovation of the flagship stores of
Dubai Mall, Times Square in New York and La Défense in Paris. Le Bon Marché
continued to cultivate exclusivity in its offer and in 2019 it opened its “private
apartments” for a personalized shopping service. The 24S digital platform pro-
gressed well, with an increasingly international clientele. In the second half of
2019, DFS faced a slowdown in tourism in Hong Kong, which is an important mar-
ket. In Europe, the Galleria in Venice continued to perform very well, and prepara-
tions are underway for the opening of its new location at La Samaritaine in Paris.
2020 Outlook
In 2020, Sephora will continue to offer its customers an unrivaled in-store and
digital beauty experience through its ever-more-experiential stores and online
shops. It will focus on the traditional drivers of its success: exclusive brands, inno-
vation, personalization, and a range of unique services offered by highly engaged,
expert teams. The Maison aims to accelerate its growth in the high-potential skin-
care product category, consolidate its lead in digital and continue expanding its
store network. DFS will enter 2020 with an extremely vigilant approach given the
ongoing situation in Hong Kong. The Maison will focus on diversifying its locations.
It will also actively prepare to seize other development opportunities in Asia, show-
casing its expertise aboard large cruise ships. DFS will continue to pursue its digital
initiatives. Le Bon Marché will continue to cultivate its uniqueness, its creative and
exclusive offerings, and its dual identity as both a trendsetting department store
and a venue for art and culture, both in-store and on its 24S digital platform. La
Grande Épicerie de Paris will accentuate its program of exclusive events that
enhance its appeal and build customer loyalty on both sides of the Seine.
90 • 91
LVMH 2019 . Selective Retailing 2 0 1 9 H I G H L I G H T S
Sephora once again recorded strong revenue growth
and continued to gain market share. Asia, most
European countries, the Middle East and Latin America
were particularly buoyant, and online sales were up
substantially worldwide. The Maison continued to
cultivate close, personalized relationships with its
customers, and to expand its range of new and
exclusive items across all product categories. It achieved
its best performance in skincare. Sephora continued to
expand its store network, with 110 openings in 2019,
including magnificent flagship stores featuring its new
retail concept at Hudson Yards (New York) and China
World (Beijing), and opened its first location in South
Korea in October. Other highlights included the
renovation and expansion of iconic stores at The Dubai
Mall, Times Square in New York and La Défense in Paris.
–
Good Skincare, Sephora’s new eco-friendly line
Sephora is actively developing eco-designed products
and proves it with the new Sephora Collection Good
Skincare line. Efforts focused on the formulations
and all the products contain 90% natural ingredients.
The packaging materials are also considerably lighter
and made with sugarcane waste, cardboard from
sustainably managed forests, and vegetable inks.
The Maison’s sustainable design strategy includes
the stand used to display these products in its stores,
which is made from renewable, recycled or certified
materials and can be easily dismantled for reuse.
Sephora
Sephora continued to innovate in digital and capitalize
on its omnichannel synergies to continually improve
how it serves its customers and offer them an unrivaled
beauty experience. New marketing campaigns
strengthened the Maison’s brand image, in particular the
“We Belong to Something Beautiful” campaign in North
America. Sephora also continued to nurture and
develop its community of loyal customers by offering
more and more services and personalization.
After a very dynamic start to the year, featuring strong
performances during the key periods of Chinese
New Year and Golden Week, from July onwards DFS
saw a very noticeable slowdown in tourist activity in
Hong Kong. The Maison was backed by momentum at
its other destinations and the continuous improvement
–
Giving back and promoting inclusion at Sephora
Sephora has forged ties with more than 500 local
NGOs around the world, providing them with
financial support, involving its employees through
volunteering initiatives and mobilizing customers
to round up purchase amounts as a donation
and buy products that raise funds for good causes.
In 2019, more than €4 million were raised to promote
inclusion, support education for women and help
underprivileged populations. Progress was also made
in the field of disabilities. In the United States, Sephora’s
partnership with a specialized logistics facility helped
create jobs for more than 120 people with disabilities.
DFS
DFS
92 • 93
LVMH 2019 . Selective Retailing of its product range to match each of its specific
markets in the face of this slowdown. The sites operated
at long-haul destinations in Australia and New Zealand
as well as the T Fondaco dei Tedeschi in Venice saw
significant increases in foot traffic, and DFS achieved
an excellent performance at these locations. Business
in Macao also increased, boosted by travelers from
mainland China. After appearances in Venice, Chengdu,
Beijing and Macao in 2018, the “Masters of Time”
exhibition, featuring a prestigious collection of watches
and jewelry, opened in Sydney and Hawaii. Two new
T Gallerias opened in Macao, bringing their number
on the island to seven, and a fourth one was inaugurated
in Hong Kong. DFS made substantial progress
in digital, with the significant expansion of its online
product offering.
Sephora
–
Building self-confidence with Sephora
Through Classes for Confidence, Sephora offers
both beauty classes and coaching to help people
facing major life transitions show themselves in
the best light and regain self-confidence. In 2019,
a total of over 800 classes were held for cancer
survivors, people who have been marginalized
on the job market and members of the transgender
community. Classes were launched in the United States
and were expanded in seven countries across Europe
(France, Russia, Poland, Spain, Italy, Greece and
Portugal), as well as the United Arab Emirates. Since
its launch, and thanks to new materials available online,
the program has already reached over 70,000 people.
Starboard Cruise Services expanded its regional
cruise line presence in Asia, in particular through a key
partnership with DFS for the launch of the first
T Gallerias on-board prestigious cruise ships. The Maison
also consolidated its expertise in its historic markets –
the Caribbean and the Mediterranean.
Le Bon Marché continued on its growth trajectory,
driven by its unique selection of brands and products,
beautiful architecture and top-quality service. For the
iconic department store on Paris’ Left Bank, these
strengths continued to place it a cut above the rest
with its French and international clientele, and its loyalty
program was highly successful. Highlights of the first
half of the year included an exhibition by Portuguese
artist Joana Vasconcelos and the Geek mais Chic event,
a shopping experience combining digital innovation
with immersive discovery and featuring a range of
fashion, beauty and decor brands. In June, Le Bon
Marché opened its Salons Particuliers (private salons),
a styling service highly appreciated by customers.
The fall season featured the So Punk Rive Gauche
exhibition, a joyous celebration of the spirit of punk,
reinterpreted with a very Parisian sophistication.
Now enjoying a dual presence on both banks of the
Seine, La Grande Épicerie de Paris saw an increase
in the number of visitors. The 24 Sèvres digital
platform became 24S, in step with its increasingly
international clientele.
Le Bon Marché
94 • 95
LVMH 2019 . Selective Retailing LV M H
S T O R I E S
99
100
103
106
108
109
112
113
117
118
121
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123
126
128
129
130
Bvlgari
An endless love affair with the silver screen
Louis Vuitton
An odyssey of creative collaboration
Loro Piana
A visual tribute to the Maison’s craftsmanship
Parfums Christian Dior
The art and science of skincare
Louis Vuitton
Reaffirming the French roots of our leather
making expertise
Belmond
An outstanding collection of destinations
and experiences
Sephora
The power of beauty
Dior
The Cruise collection travels to Marrakesh
Guerlain
A sensory journey to Calabria,
the land of bergamot
Hennessy
Responsible by nature
Ruinart
Reconnecting with our roots
Dior and Rimowa
Exclusive collaboration for a luggage collection
Fendi
An Haute Couture tribute to Karl Lagerfeld
La Samaritaine
A Parisian landmark is reborn
Cheval Blanc
Elevating the art of hospitality
TAG Heuer
Five limited editions celebrating
50 years of the Monaco
Loewe
Slip into the imaginary world of
Arts & Crafts ceramist William de Morgan
B V L G A R I
A n end les s
love a f f a i r w it h
t he s i lver s c reen
tribute to the Maison’s love affair with the silver
Bvlgari’s new Cinemagia high jewelry collection is a
screen, a bond that dates back to the 1950s,
when Cinecittà turned Rome into the “dream factory”.
Featured in more than 40 international films, Bvlgari’s
creations have been worn by some of the world’s great-
est actresses, from Ingrid Bergman and Audrey Hepburn,
to Anita Ekberg and Sharon Stone.
Today, each item in the Cinemagia collection embodies
that quintessential Roman charm. Bvlgari’s Action! neck-
lace celebrates the invention of celluloid film with its
undulating contours and combination of unconventional
black zirconium with the eternal diamond. The Maison’s
gemstone expertise is palpable in the Emerald Affair sau-
toir’s dazzling 24-carat octagonal emerald. The glittering
array of deep blue sapphires in the Pirate Treasures neck-
lace echoes the ocean and the treasures it locks away.
Capping off the collection, the Fairy Wings necklace fea-
tures an extraordinary rainbow of gemstones set against
a cloud of romantic butterflies.
A masterpiece of the imagination, Cinemagia was
unveiled in Capri at a dramatically staged event that
showcased the entrancing allure to which only Bvlgari
has the secret. This prestigious launch, held at Certosa di
San Giacomo on the Amalfi Coast, and attended by a
star-studded international guest list, was a memorable
occasion infused with magic and dreams.
Inspired by a passion for film that was born in the heyday
of La Dolce Vita, today Bvlgari shines the spotlight on a
new generation of strong, independent, audacious
women. In a perfect blend of whimsical ingenuity and
masterful goldsmith’s work, each piece plunges us into
the magic of cinema, from the glitter and sparkle of red
carpets to the art of Italian filmmaking.
Featuring original,
vibrant colors and designs,
the Cinemagia jewelry
collection turns heads with
its larger-than-life attitude.
•
98 • 99
LVMH 2019 . LVMH stories L O U I S V U I T T O N
A n ody s s ey
of c reat ive
col l ab or at ion
Vuitton between June 28 and November 15, 2019,
Louis Vuitton X, the exhibition hosted by Louis
at the iconic 468 North Rodeo Drive building in
Beverly Hills, explored the trunk-maker’s trailblazing his-
tory through its artistic collaborations.
The interactive exhibit used an unprecedented dialogue
between past and future to retrace 160 years of creative
collaborations. It featured 180 creations taken from
the Maison’s archives and showed how designers and
artists from all backgrounds have embraced the legacy
started by young Louis Vuitton on his arrival in Paris in
1837. After apprenticing with a famous chest-maker/
packer, he spent 17 years perfecting his art, rising to the
rank of master trunk-maker before opening his first
boutique at 4 rue Neuve-des-Capucines in Paris in 1854.
Since then, Louis Vuitton has offered one-of-a-kind
designs by combining innovation and style, and always
putting quality first.
Today, the Maison remains true to the spirit of its founder,
who pioneered the “art of travel” through luggage, bags
and accessories that are creative, elegant and practical. In
keeping with this heritage, over the years it has wel-
comed architects, artists and designers, while developing
its expertise in ready-to-wear, footwear, accessories,
watches, jewelry and fragrances. These meticulously
designed products are a testament to Louis Vuitton’s
commitment to artisanal craftsmanship.
The exhibition journeyed back in time, opening with por-
traits of the young Louis Vuitton by Yan Pei-Ming and
Alex Katz, two of contemporary art’s most renowned
painters. Both perfectly captured the spirit of the founder,
whose pioneering vision and masterful craftsmanship
revolutionized the trunk-making profession, elevating it to
that of work of art and founding the legendary Maison
that still carries his name.
100 • 101
LVMH 2019 . LVMH stories The extensive exhibition included variations on the
iconic Monogram canvas. For its centenary in 1996 and
the celebration of the Monogram in 2014, Louis Vuitton
invited the world’s greatest designers, artists and crea-
tive spirits to reinvent, reshape and transform the
Maison’s famous bags, styles and patterns. The results
ranged from a punching bag by Karl Lagerfeld, to the
“Studio in a Trunk” by Cindy Sherman, and a record case
by Helmut Lang, illustrating what happens when
talented artists brimming with imagination join forces
with the inimitable craftsmanship of Louis Vuitton.
Louis Vuitton X also revisited the Maison’s relationship
with Hollywood’s most talented and famous stars – Greta
Garbo, for one, never traveled without a Louis Vuitton
steamer trunk for her shoes. The exhibition featured
more than 30 contemporary looks, all designed by
Nicolas Ghesquière, Louis Vuitton’s Artistic Director of
Women’s Collections, and originally worn on the red car-
pet by the most celebrated women in modern cinematic
history. These dresses and accessories reflect a flawless
approach to modern design and an unrivaled ability to
capture each star’s unique creative spark.
This extensive retrospective included a host of other
exhibits, including a remarkable collection of custom-
made trunks from the early 20th century, Art Deco per-
fume bottles and window displays commissioned and
designed by Gaston-Louis Vuitton, the founder’s grand-
son. The last room was devoted to the craftsmanship
behind each creation – visitors could explore a workshop,
observing the meticulous gestures of the expert hands
that bring these original creations to life.
A unique and truly enriching experience, Louis Vuitton X
brilliantly showcased the ongoing dialogue between tra-
dition and modernity, fine craftsmanship and innovation.
The exhibition was an exceptional immersive experience,
where time appeared to have stood still...
An interactive exhibition
looking back at Louis Vuitton’s
trailblazing trajectory:
160 years of creative
collaborations with the world’s
greatest artists and designers.
•
L O R O P I A N A
A v i s u a l t r ibu te
to t he Ma i s on’s
c r a f t s m a n s h ip
finest, softest and warmest cashmere, but few
Loro Piana is world-renowned for crafting the
people know how it does this. In the film Cashmere
– The Origin of a Secret, the Maison reveals how it sources
and processes raw material of exceptional high-quality.
This is the first of three documentaries on the natural
fibers used by Loro Piana. It also marks the Maison’s
first collaboration with French film director Luc Jacquet,
who won an Oscar in 2006 for his documentary March of
the Penguins.
Before venturing into filmmaking, Luc Jacquet was an
ecologist who specialized in the relationship between liv-
ing creatures and extreme environments. Loro Piana’s val-
ues, which center on preserving traditional skills, touched
a chord with him, because they echo his own beliefs.
His new film takes us deep into the Mongolian and Inner
Mongolian steppes to the birthplace of Loro Piana cash-
mere. In this harsh environment, not far from the Gobi
Desert, goat herders raise the Capra Hircus, or cashmere
goat. Their delicate ecosystem is endangered by industrial
-scale overproduction. That is why Loro Piana has a long-
standing commitment to producing responsible cash-
mere which not only protects Mongolian flora and fauna,
but also improves the goat herders’ lives and helps them
produce better quality cashmere over the long term.
The documentary premiered at Shanghai’s MIFA 1862 Art
Center in October 2019, where it was accompanied by an
immersive experience featuring Mongolian landscapes.
At the event, the Maison also presented the Loro Piana
Cashmere of the Year Award, which recognizes the
expertise of the world’s best cashmere producers.
Cashmere – The Origin of a Secret can be viewed on the
Loro Piana website. It will be followed by two other films
on vicuña and super fine The Gift of Kings® merino wool.
The film – an event in itself –
celebrates the Maison’s
craftsmanship and commitment
to preserving nature.
•
102 • 103
LVMH 2019 . LVMH stories 104 • 105
LVMH 2019 . LVMH stories PA R F U M S
C H R I S T I A N D I O R
The a r t a nd s c ience
of s k i nc a re
was founded – Dior Skincare took on the mission of
In 1967 – twenty years after the Dior fashion house
expanding the fashion designer’s vision starting with
the most essential foundation of beauty: exquisite skin.
For more than 50 years, Dior Skincare has steadfastly
pursued this mission, pushing the boundaries of interac-
tion between the infinitely large and the infinitely small:
nature and the cell nucleus.
Dior researchers study the vital mechanisms of the skin
and its cells. Botany experts then turn to nature to select
active ingredients that can stimulate or revitalize these fun-
damental mechanisms. Finally, Dior Science takes over to
magnify these benefits, both by extracting the most pow-
erful molecules and developing skin-friendly formulations.
At Hélios, the Innovation Center in Saint-Jean-de-Braye,
France, Dior’s Master-Formulators wield a palette of
more than 3,000 raw materials, and discover ever more
groundbreaking ones every day. Formulation is painstak-
ing work that requires extreme attention to detail to
achieve exceptional results: a major formula requires 100
to 200 tests, or up to 1,000 hours’ work.
Thanks to its dedication, Dior Science has been at the
forefront of excellence and innovation for five decades.
Hélios and Dior’s three innovation centers in Asia (Tokyo,
Shanghai and Seoul) work closely with some of the
world’s most prestigious universities in the field, including
Stanford in the United States, Bradford in England, and
Institut Curie in France.
Thanks to these exceptional partnerships, the history of
Dior Skincare is studded with innovative technologies.
The Maison notably introduced the use of liposomes in
cosmetics back in 1986, with its Capture range, which
revolutionized the anti-aging market. Capture, which was
the culmination of seven years of fundamental research in
partnership with the Institut Pasteur, became a cult skin-
care product.
In 2019, Dior Science entered into an exclusive research
partnership with Kyoto University’s CiRA research center,
led by Professor Shinya Yamanaka, a stem cell specialist
and joint winner of the 2012 Nobel Prize in medicine. This
scientific partnership is CiRA’s first ever with an interna-
tional cosmetics house, and therefore a tremendous
endorsement of Dior Science, which boasts 20 years of
stem cell research and more than 20 patents attesting to
its innovative momentum.
Through these world-class scientific partnerships and
thanks to its own expertise, Dior’s researchers have made
a major discovery regarding stem cells. Stem cells are rare,
making up only 0.2% of skin cells. Contrary to what we
thought in the past, it is not their number that decreases
over time, but their energy potential. That decrease goes
hand in hand with the decline in all cellular functions and
the general vitality of facial tissue, a discovery which
spurred the idea of a new skincare range based on restor-
ing cellular energy in order to reactivate the skin’s vital
functions and youth: Capture Totale C.E.L.L. Energy.
From formula development to product use, the new
Capture Totale C.E.L.L. Energy skincare routine was
designed by Dior biologists as part of a comprehensive
anti-aging and total youth approach, where each active
ingredient and each product work together for maxi-
mum results.
Like its acclaimed predecessors since 1967, this product
line fully embraces the skin- and nature-friendly philoso-
phy of the Maison’s botany experts. That’s why Dior
Skincare lines include up to 94% naturally derived ingredi-
ents. Each one is carefully selected according to rigorous
quality, traceability and safety criteria. These strict require-
ments apply all the way to the finished product: Dior skin-
care products are tested under dermatological supervision
in order to ensure they are perfectly skin-friendly.
Respect for nature starts right with the product design
phase: as it develops the formulation, the Maison also ana-
lyzes and adapts packaging to minimize its environmental
impact. Jars, bottles and cases are sustainably designed;
unnecessary packaging and instructions are removed;
boxes are made of cardboard sourced from sustainable
forests and printed with vegetable-based inks. Proving
once again that nature holds the key to beautiful skin.
For the past 50 years, Dior Science
has been at the forefront
of excellence and innovation.
•
106 • 107
LVMH 2019 . LVMH stories L O U I S V U I T T O N
Rea f f i r m i n g
t he Frenc h root s
of ou r leat her
m a k i n g ex p er t i s e
expertise in France with the inauguration of a
Louis Vuitton has reinforced its deeply rooted
next-generation leather goods workshop in
Beaulieu-sur-Layon (Maine-et-Loire), its 16th in France.
Spanning 6,000 square meters, the site is modular, agile,
highly energy efficient, and is perfectly suited to the
requirements of the leather goods manufacturing pro-
cess, particularly in terms of natural lighting.
Built in less than a year by local partners and businesses,
the metal and wood building consumes 40% less energy
than existing workshops. It features flexible open work-
spaces designed to foster interaction and adapt to rap-
idly evolving production models.
This new workshop is yet another example of Louis
Vuitton’s commitment to the Pays de la Loire region, and
follows the opening in 2018 of a new production site in La
Merlatière (Vendée), near the two existing workshops in
Sainte-Florence (Vendée). The Maison will eventually
have 300 employees in Beaulieu, and could even double
its workforce there, since a plot of land next to the work-
shop could be used to build a second one. Louis Vuitton
plans to hire 1,500 more employees at its workshops in
France by 2022, adding to the workforce of 4,300 cur-
rently employed at its 16 workshops.
By inaugurating a new workshop
in its core business and its home country,
Louis Vuitton reaffirms its desire
to nurture the French expertise that
is central to its identity.
•
B E L M O N D
A n ou t s t a nd i n g
col lec t ion of
des t i n at ion s
a nd ex p er iences
forefront of exceptional travel. The Maison aims to
For more than 40 years, Belmond has been at the
offer its customers one-of-a-kind trips and experi-
ences in inspirational locations. Since it acquired Hotel
Cipriani in Venice in 1976, Belmond has celebrated local
traditions, communities and cuisines in the world’s most
sought-after destinations, and created unique, authentic
experiences in places charged with history. Today, with its
large portfolio of very high-end hotels, trains, cruises and
safaris, the Maison brings together heritage, expertise,
authenticity and exacting customer service.
It joined LVMH in 2019, to expand the Group’s collection
of exceptional hotels, alongside Cheval Blanc and Bvlgari.
Belmond manages 33 hotels in 24 countries, including
legendary names like the Splendido in Portofino, Rio de
Janeiro’s Copacabana Palace and the Grand Hotel
Europe in Saint Petersburg. It also boasts secluded
havens like Hotel das Cataratas, a gem overlooking
Brazil’s Iguazú Falls, and Sanctuary Lodge, tucked
beneath the lost city of Machu Picchu; as well as architec-
tural marvels like former monasteries Hotel Monasterio in
the historic heart of Cuzco, Peru, and Villa San Michele,
nestled in the hills of Fiesole above Florence.
Belmond also operates seven world-renowned train lines,
including the legendary Venice Simplon-Orient-Express,
an Art Deco icon, and the Belmond Royal Scotsman,
which marries Edwardian elegance with all the comforts
of a country house. The Maison’s two exceptional river
cruises: Belmond Afloat in France and Belmond Road to
Mandalay, round out its luxury travel offer of unforgetta-
ble experiences, bespoke activities and unparalleled
customer service.
Belmond’s arrival
within the LVMH family
brings with it the prospect
of more adventures and
extraordinary experiences.
•
108 • 109
LVMH 2019 . LVMH stories 110 • 111
LVMH 2019 . LVMH stories S E P H O R A
The p ower of b eau t y
runways and magazines, it has been reclaimed in
Beauty is changing. No longer the preserve of
our selfies as smartphone screens become the
new mirror. Embracing this change, Sephora has reaf-
firmed its leadership and its vision of beauty with a new
corporate communication campaign: a tribute to “The
Unlimited Power of Beauty”.
Beauty without limits: a space where we all belong and
are free to play. Where we all have the power – and the
right – to experiment. Beauty whose many facets can be
explored in a day – or over a lifetime. Beauty that gives us
the power to assert ourselves – to love ourselves. Beauty is
not a norm, a size or a filter. It is a tool that gives us power
and confidence.
To illustrate this positioning, Sephora developed a power-
ful campaign that is deliberately different from previous
years, both very universal in its casting and very intimate
in its tone and imagery.
Through the eyes of director Jonas Lindstroem, we expe-
rience the very real emotions of a person faced with their
reflection throughout their life, giving this experience a
voice, from moments of doubt to moments of strength.
The video is accompanied by a collection of portraits by
British photographer Nadine Ijewere, paying homage to
the full spectrum of beauty, spanning all ages, genders,
physiques and styles.
The Europe-wide campaign resonates with Sephora
Stands, the Maison’s social and environmental engage-
ment program which gave rise in the United States to the
“We Belong to Something Beautiful” campaign, an inclu-
sive celebration of courage, self-affirmation and beauty in
all its diversity.
Through its new signature, “The Unlimited Power of
Beauty”, Sephora conveys a strong, ambitious, inclusive
vision that aims to expand the Maison’s cultural impact. It
is also an inspiring mission statement for all its staff: we all
have the power to celebrate the diversity of the beauty
community – a core part of the brand’s identity.
A tribute to the boundless
diversity and authentic,
powerful beauty of the people
who make up today’s world.
•
D I O R
The C r u i s e col lec t ion
t r avel s to Ma r r a kes h
Dior’s Creative Director of womenswear, Maria
forging creative dialogue with African cultures.
Grazia Chiuri, has always had her heart set on
Above all, she has longed to commune with the land-
scapes and folklore of Morocco, a historic crossroads
between the Mediterranean, Europe and Africa, and the
dream destination of artists, poets, writers and eternal
adventurers. Presenting the 2020 Cruise collection in
Marrakesh was a way to pay tribute to the Maison’s herit-
age and that of Christian Dior’s first successor, Yves Saint
Laurent, a native of the Algerian port city of Oran who
was fascinated by Morocco. This show also illustrated the
notion of a common ground where, in spite of their differ-
ences, women can build concrete connections by sharing
ideas and taking action together.
The collection, which unfurled like a map of the world,
blends the images and atmospheres that have fashioned
visual culture on that side of the Mediterranean. Its initial
inspiration and flag of pride, is wax print cloth. The incred-
ible history of this fabric celebrates diversity and the meet-
ing of cultures. The Maison collaborated with the Uniwax
factory and design studio in Abidjan (one of the last facto-
ries that still produces wax fabric using traditional meth-
ods) to reinterpret Dior’s hallmarks by weaving them into
this signature fabric, in a special edition. New, revisited wax-
print Toile de Jouy designs were the fruit of this collabora-
tion, featuring rich landscapes and reworked tarot motifs.
Like all the pieces in the collection, the Bar jacket exalts
the power of fashion as an inclusive, transnational lan-
guage. But the collection also emphasizes the power of
nature by using ecru silk, silk gauze and shantung in
sandy shades, indigo blue and burnt ochre red to adorn
coats, tailored jackets, pleated skirts and pants.
Through these cultural conversations, the 2020 Cruise
collection reminds us that fashion itself is a uniquely
interwoven part of our heritage, inspired by countless
places and periods throughout history. The collection,
which maps out an imaginary landscape of cultures and
emotions, is enriched by other creative collaborations
that exalt Dior’s hallmarks into a fugue of interweaving
artistic dialogue.
112 • 113
LVMH 2019 . LVMH stories Pathé Ouédraogo – known as Pathé’O –, one of Africa’s
greatest fashion designers and the man whose iconic
brightly colored patterned shirts have become symbols
of the continent and its cultural diversity, was asked to
design an exclusive piece as a tribute to Nelson Mandela.
Maria Grazia Chiuri also collaborated with two creative
powerhouses, using their perspectives to reinterpret
the Maison’s iconic New Look silhouette, the Bar jacket
and skirt.
The first, fashion designer Grace Wales Bonner, was born
in London to a British mother and Jamaican father. Her
work explores her own identity through her conception
of tailoring and its references, blurring the lines between
masculinity and femininity.
The second, African-American artist Mickalene Thomas,
celebrates the many facets of femininity and diversity by
drawing inspiration from her mother, who was a model in
the 1970s. Mickalene Thomas references great European
painters from Ingres to Manet, and designs colorful col-
lages that question social norms and preconceived
notions of female beauty.
Dior’s milliner Stephen Jones designed a range of head-
wear. Like an ode to travel, the wax print headwraps and
bandanas he imagined in collaboration with fashion
designer Martine Henry crowned the silhouettes of this
2020 Cruise collection.
For the show’s decor, the Maison collaborated with
Sumano, a nonprofit that aims to revive the traditional
women’s crafts of Moroccan tribes, in particular painted
ceramics and the art of weaving and vegetable dyeing.
This collaboration with Dior resulted in the creation of
painted ceramic plates, pillows and a hand-woven, hand-
painted coat.
With the 2020 Cruise collection,
Maria Grazia Chiuri
maps out an imaginary landscape
of culture and emotion.
•
G U E R L A I N
A s en s or y jou r ney to C a l abr i a ,
t he l a nd of b erg a mot
the world with its iconic fragrances. The secret of
Ever since 1828, Guerlain Parfumeur has captivated
this longevity lies in the expertise perpetuated by
its Master Perfumers; in its fondness for certain hallmark
ingredients like rose, iris, vanilla, tonka bean, bergamot
and jasmine; and in its bold signature. Thierry Wasser is
the fifth generation of Guerlain Master Perfumers. He
explores the world as the seasons unfold, in search of the
natural raw materials prized by the Maison. And where he
goes, Guerlain follows, sourcing exceptional ingredients
and ensuring respect for people and nature.
Bergamot is mainly grown in Calabria, ripening in the
winter when its green skin turns yellow. The families who
grow this fruit can then harvest it. Each harvest is unique
because so many factors influence the fruit’s essences
– the soil, the amount of sunshine, the time of harvest
and more.
What makes Guerlain’s bergamot special is its quality and
unique combination of essences: Thierry Wasser creates
his own blend using essential oils from different plots,
mixing fruity and floral notes with greener and more bit-
ter ones. This Guerlain bergamot – the fresh facet of the
Maison’s signature Guerlinade fragrance base – appears
in nearly all the Maison’s creations, from its first Colognes
to La Petite Robe Noire, where it plays a supporting role,
to Shalimar extract where it has the lead role.
Guerlain has worked with the Capua family for nearly 60
years, and is engaged in a sustainable partnership with
local bergamot producers, encouraging them to diversify
and safeguard their crops. For example, in a fine illustra-
tion of a virtuous circle, a row of bitter orange trees now
protects the bergamots from the wind and also provides
precious flowers for perfume-making.
Guerlain has had
a trusting friendship with
the same Calibrian
bergamot farming families
for several generations.
•
116 • 117
LVMH 2019 . LVMH stories H E N N E S S Y
Res p on s ible
by n at u re
of a three-step process – selection, aging and
From vine to bottle, cognac is the culmination
blending – that is unique to Cognac (France) and
used nowhere else in the world. To ensure excellence and
a rich bouquet of aromas, Hennessy selects only the fin-
est eaux-de-vie sourced from the best AOC vineyards.
That means everything starts with winegrowing, an area
where the Maison has made firm commitments and
achieved the highest levels of certification.
For over twenty years, Hennessy has made environ-
mental management and food safety top priorities, as
demonstrated by the ISO 14001 and ISO 22000 certifica-
tions it obtained in 1998 and 2006, respectively.
The Maison develops and uses highly innovative technol-
ogies that are safe and environmentally friendly, while
also maintaining the ancestral knowledge required
to safeguard and pass on its winegrowing heritage.
Everyday practices such as tilling and gentle vine pruning
are natural ways for Hennessy to preserve its terroirs.
Combined with high-tech equipment and experimental
winegrowing techniques, natural crop protection prod-
ucts and biological pest control methods (such as mating
disruption for harmful insects) are valuable tools to help
protect its vineyards.
Biodiversity and soil quality are also given special care.
The Maison has introduced eco-friendly farming methods
including preserving hedgerows and leaving land fallow
for bees or crop rotation. Safe havens have been created
for beneficial animals and insects. In total, 60% of the
surface area of Hennessy’s vineyards is planted, either
naturally or with cover crops selected to promote soil life
and limit erosion. In parallel, all land awaiting replanting is
sown with biodiversity-friendly plants. Replanting hedge-
rows is a key priority for the years to come.
118 • 119
LVMH 2019 . LVMH stories In addition to these environmental commitments, the
Maison also focuses on the social component of sustain-
able winegrowing, and particularly on maintaining posi-
tive relationships with the surrounding community and
championing the profession.
Hennessy has been a member of France’s network of
farms aiming to reduce pesticide use since 2011, and in
2016 its vineyards obtained Haute Valeur Environnementale
(HVE) certification, a reward for the Maison’s excellent
performance in three areas: biodiversity, vine protection
strategy and fertilizer management. In addition, after
laying the groundwork in 2016, Hennessy was highly
involved in the creation of the Viticulture Durable Cognac
sustainable winegrowing certification, which raises the bar
for environmental protection, plant species conservation
and biodiversity. The Maison received this certification
when the framework was launched in November 2018.
Lastly, Hennessy’s vineyards serve as an example for
others – it shares best practices with its partner wine-
growers and suppliers and helps them become more
sustainable, in line with the Maison’s core values. An
ambitious support plan has been implemented to
ensure that all partner winegrowers have both the
Certification Environnementale Cognac and Haute
Valeur Environnementale certification by 2025, with the
goal of eliminating chemical herbicides by 2028.
Hennessy has made a firm
commitment to eliminate
herbicides from its own vineyards
by 2021 and from those of
its partners by 2028.
•
R U I N A R T
Recon nec t i n g
w it h ou r root s
On September 1, 2029, Ruinart – the oldest estab-
300th anniversary. Over the centuries it has sur-
lished champagne house – will celebrate its
rounded itself with artists such as Alphonse Mucha in
1896, and more recently has partnered with renowned
contemporary creative talent to whom it gives carte
blanche each year to represent it at the world’s greatest
international art fairs.
2019 marked the start of the ten-year countdown to the
Maison’s fourth century during which, every year, Ruinart
will unveil a new artistic or architectural project in Reims
focusing on innovation, creativity and sustainability.
This year, the Maison brings together art, sustainable
development and artificial intelligence in a long-term
installation that is in tune with nature. Retour aux sources
is the artistic and technological vision of digital artistic
duo Mouawad Laurier. It symbolizes Ruinart’s sensitivity
to environmental issues through a singular, immersive
sound and vision experience more than 100 feet under-
ground. The sculpture represents the root of a grapevine,
and is autonomous, connected to the world around it and
equipped with artificial intelligence. Installed in an ancient
chalk quarry – a UNESCO World Heritage site – it reacts
in real time to the natural elements involved in the cham-
pagne production process. Using the data it receives
from the vineyards, production and climate, the sculpture
changes with the seasons, reacting to the key events in
the champagne-making year, observing climate change,
sensing temperature and wind speed, and following the
wine-making cycle – harvest, fermentation, riddling and
maturation. The root responds to each of these key
events in different ways, reacting to its surroundings at
that time. For visitors, this means that the story of Retour
aux sources is constantly changing and unfolding, and
becomes a powerful, persuasive reminder of the need to
protect our natural environment.
In the lead-up to its
300th anniversary,
Ruinart reminds us how
meaningful roots are.
•
120 • 121
LVMH 2019 . LVMH stories D I O R A N D R I M O W A
Exc lu s ive
col l ab or at ion for
a lu g g age col lec t ion
Menswear, who share the same passion for travel
Rimowa and Kim Jones, Dior’s Creative Director of
and mobility, pooled their talents to create an
exceptional capsule collection.
Sleek and graphic, the Dior and Rimowa luggage collec-
tion was partly unveiled at the Summer 2020 show,
before being previewed and then officially launched at
Dior’s new Champs-Élysées boutique in the fall. The
launch was spectacularly staged under a luminous celes-
tial dome. Carrying the promise of new horizons, clouds
floated across the installation creating a captivating play
of reflections that highlighted a helicopter specially cus-
tomized for the event in Rimowa’s signature gray. The
cockpit interior and seats were upholstered in Dior’s
emblematic Oblique pattern, designed by Marc Bohan in
1967. After previews at a number of dedicated Dior loca-
tions in Beijing, Miami, Dubai, Hong Kong, Paris and
London, the collection was launched in early 2020 in all
Dior stores worldwide.
The collection design is minimalist and features an inno-
vative anodizing process that allows graded pigments
to be integrated into the aluminum core. Carry-ons come
in silver, matte black and graded blue overlaid with the
Dior Oblique pattern, for a unique travel experience. A
“Christian Dior”-emblazoned elastic strap adds the finish-
ing touch. An aluminum trunk and hand case – inspired
by a Rimowa model from the early 1990s, with a remova-
ble cross-body strap – also feature the Dior Oblique print.
The collection is rounded out by the stylish “Personal”
clutch – perfect for keeping one’s belongings handy – in
blue, black, silver or pink aluminum, and a special-order
champagne case featuring an elegant, functional design,
including a gray crocodile-leather handle. These exclusive
pieces are bound to inspire wanderlust.
Combining their expertise,
Rimowa, Dior and Kim Jones
have created an exceptional
capsule collection that
celebrates travel and mobility.
•
F E N D I
A n Hau te Cou t u re
t r ibu te to
K a rl Lager feld
couture collection, on Palatine Hill, against the
Fendi presented its Fall-Winter 2019-2020 haute
backdrop of the Roman Forum. The show was a
tribute to Karl Lagerfeld, its longtime Creative Director,
and the collection’s 54 silhouettes symbolized his 54
years at Fendi – the longest tenure in fashion history.
Celebrating the timeless glory of the city of Rome, the
show unfolded in a symphony of shifting impressions at
the heart of an ephemeral Italian garden interspersed
with glints of the sunset reflected in pools. The setting
combined the rigor of classical architecture with ele-
ments of nature – roots, structure and strata.
The collection itself featured pictorial decorations recall-
ing the art of marquetry transposed onto fabric and fur
garments, and a palette of pastel colors to soften their
angular lines. Yellow-orange citrine, jade green and quartz
pink were paired and mixed with lighter shades flecked
with gold.
From light coats to pencil skirts, tailored shirts and pala-
zzo pants, the collection explored the metamorphosis of
marble – a marvel of nature shot through with crystalline
veins and extraordinary colors.
The collection’s silhouettes were directly inspired by
sketches from Karl Lagerfeld’s archives. Carefully selected
by Silvia Venturini Fendi, the Maison’s Creative Director,
they served as the starting point for the couture collec-
tion, the folds of cloth, the architecture of shoulder pads
and the graphic design of necklines.
This exceptional event was accompanied by a musical
performance by Italian composer Caterina Barbieri and
followed by dinner in the Barberini vineyard, a short walk
from the Elagabalium temple and the olives, pomegran-
ates, figs, lemons and roses of Palatine Hill.
Celebrating the glory
of ancient Rome, Fendi pays
an Haute Couture tribute to
the memory of its longest-serving
Creative Director.
•
122 • 123
LVMH 2019 . LVMH stories L A S A M A R I T A I N E
A Pa r i s i a n l a nd m a rk
i s reb or n
As it reemerges from an extraordinary makeover,
couple Ernest and Marie-Louise Cognacq-Jay,
150 years after it was founded by the visionary
La Samaritaine will reclaim its place in radiant splendor at
the heart of Paris, transformed into a 21st century neigh-
borhood embodying the many facets of Parisian life.
Its rebirth has been an exceptional adventure entailing
five years of work to renovate four buildings from differ-
ent periods with different architectural styles. Located in
the heart of Paris, in a dense environment closely bor-
dered on all sides, navigating the renovation site was a
daily challenge for the 3,000 people and 280 French
companies who worked on it, under the aegis of
Japanese architecture firm Sanaa, winner of the 2010
Pritzker Prize.
Cherished by its Parisian clientele and open to the world,
the department store will reflect the spirit and the magic
of France’s capital city. Fashion, art de vivre and fine cui-
sine at La Samaritaine will reflect the effortless chic Paris
is renowned for. With its inimitable, much-loved style, it
will be the perfect way to enjoy new experiences and
rediscover the unique, generous soul of Paris.
Just a few steps away, the Cheval Blanc Paris hotel will
open its doors: 72 rooms and suites in the heart of Paris,
across from Notre-Dame and the Eiffel Tower, where the
Maison will infuse the art of living and hosting with the
world of design.
In addition to the major draw of the department store
and the hotel, La Samaritaine will inject new life into
Paris’ 1st arrondissement by transforming part of its
premises into a living space. The social housing program
managed by Paris Habitat and offering 96 homes on the
Rue de l’Arbre-Sec, will provide accommodation for sev-
eral families. Together with the occupants of neighboring
offices, these residents will revitalize neighborhood
shops and businesses.
In the eyes of foreign visitors, Paris is “a moveable feast”,
and the new La Samaritaine will play its part in enhancing
the capital’s economy and cultural appeal to the full.
An inimitable, much-loved
style, the perfect way
to enjoy new experiences
and rediscover the unique,
generous soul of Paris.
•
C H E V A L B L A N C
Elev at i n g t he a r t
of hos pit a l it y
winter of 2006, inspired by a desire to heighten
The first Cheval Blanc address was opened in the
the hotel experience in truly exceptional settings.
The Cheval Blanc Maisons’ quest for excellence is guided
by a set of core values: exclusivity, exquisite attention to
detail, creativity and the art of hospitality. They take a
bespoke approach to hospitality, using immense talent
and resourcefulness to ensure each hotel stay is an unfor-
gettably personal experience.
This quest for perfection is reflected in Cheval Blanc’s
Latin motto: Ducit supra montes, or “Beyond the moun-
tains”. And mountains are precisely the setting of its first
Maison, located in Courchevel, the world’s largest ski
resort. This enchanting, modern chalet is one-of-a-kind,
and works its magic against a backdrop of green fir trees
and snow-covered peaks.
The Maisons that followed it share the same values and
exacting standards. Each destination is meticulously
selected, each property carefully fashioned down to
the tiniest detail so that it is in symbiosis with its natural
surroundings, history, local culture and the spirit of
Cheval Blanc.
After Courchevel, Randheli in the Maldives, and St-Barth
Isle de France, in 2019 Cheval Blanc added Saint-Tropez
to its prestigious collection. This new property, acquired
by LVMH Hotel Management in 2016, offers a true taste of
French Riviera lifestyle, in an elegant, contemporary set-
ting that has retained all of its charm and authenticity.
Cheval Blanc will take its vision of the art of hospitality to
new heights when it inaugurates its first urban Maison in
the heart of the City of Light. There, where the River Seine
flows, Cheval Blanc Paris will infuse a spirit of warm, elegant
hospitality and nurture the perfect epicurean balance in an
iconic 72-room-and-suite Art Deco building featuring four
restaurants and the very first Dior Spa Cheval Blanc –
encapsulating the allure of the capital…
The Cheval Blanc Maisons
take a bespoke approach
to hospitality, using immense
talent and resourcefulness
to ensure each stay is an
unforgettably personal experience.
•
T A G H E U E R
Five l i m ited ed it ion s
celebr at i n g 50 yea rs
of t he Monaco
dent at the time – launched the Monaco, a unique
It was in 1969 that Jack Heuer – the Maison’s presi-
timepiece that became famous for its exceptional
design and groundbreaking technology. This iconic
watch achieved two world firsts: the first water-resistant
timepiece with a square case, and the first automatic
chronograph movement – the Calibre 11. Half a century
later, TAG Heuer paid tribute to this model and its disrup-
tive design by holding a series of events throughout 2019
in Europe, the United States and Asia. At each of these
events, a new limited-edition Monaco model was
released, each one representing the unique aesthetics of
one of the five decades since its original launch.
The first of these exclusive pieces, inspired by the dec-
ade from 1969 to 1979, was unveiled at the Formula 1
Monaco Grand Prix in May. The second, an homage to
the period from 1979 to 1989, was presented in June at
the 24 Hours of Le Mans in France – the epic endurance
race depicted in the 1971 film Le Mans, in which actor and
“King of Cool” Steve McQueen sports the legendary
timepiece on his wrist. The third special-edition Monaco
timepiece, which harks back to the 1990s, made its grand
entrance in July at the New York round of the Formula E
championship. The fourth edition, honoring the refined
style of the early 2000s, was equally well received world-
wide following its debut at the Tokyo National Museum
in September. The Swiss watchmaker capped off the
celebrations in October with the fifth and final watch,
embodying the 2010s, at an immersive event held at
Shanghai’s Space Plus venue.
To mark this anniversary, TAG Heuer also published a
book that traces the history and spirit of this improbable
icon: Paradoxical Superstar documents the Monaco’s
story with archive excerpts, never-before-seen photos
and sketches of designs and movements.
True to the collection’s origins,
the TAG Heuer Monaco
anniversary editions perpetuate
its avant-garde spirit and
offer a glimpse into the history
of a legendary watch.
•
128 • 129
LVMH 2019 . LVMH stories L O E W E
Sl ip i nto t he i m ag i n a r y
world of A r t s & C r a f t s
cer a m i s t Wi l l i a m de Morg a n
collection designed by Loewe’s Creative Director
The ready-to-wear and accessories capsule
Jonathan Anderson, is inspired by the fantastical
world of British ceramist William de Morgan. He designed
ceramics and stained glass and had a huge influence on
the decorative arts from the 1860s. A leading figure of the
Arts & Crafts movement, he perfected innovative glazing
techniques, and most famously worked on luster and color.
William de Morgan is renowned for his enchanting
designs depicting extraordinary beasts and floral ara-
besques. His fertile imagination was a great source of
inspiration for Jonathan Anderson, who has created a
Loewe collection that unleashes the imagination and
infuses magic into everyday life. For example, he acces-
sorizes a coat with a woollen dragon’s tail, and adorns
clothing with animal motifs – a dodo is emblazoned on
the back of a black leather jacket, and a peacock-print
transforms a trench coat with its spectrum of blues and
greens. The iconic Puzzle, Hammock and Gate bags
feature hand-embroidery and leather patchworks of
feathers and flowers. This reinterpretation of William de
Morgan’s world and virtuoso techniques is yet another
example of the Maison’s highly skilled craftsmanship.
Loewe also commissioned a film by BAFTA-winning film
director Nina Gantz to accompany the launch of its
“Loewe William de Morgan” capsule collection. The short
movie, entitled An Otter’s Tale, features William de
Morgan’s creatures alongside Loewe models wearing col-
lection items, and immerses the viewer into the talented
creative universes of Loewe and William de Morgan.
This reinterpretation of
William de Morgan’s world and
virtuoso techniques is yet
another example of the Maison’s
highly-skilled craftsmanship.
•
130 • 131
LVMH 2019 . LVMH stories P E R F O R M A N C E
M E A S U R E S
U S E F U L I N F O R M A T I O N
F O R S H A R E H O L D E R S
SHA R EHOLDER S’
C LU B
IN FOR MAT ION
A BOU T LV M H SHA R ES
The LVMH Shareholders’ Club was set up in 1994 to give
individual shareholders who are particularly interested
in the life of the Group a better understanding of LVMH,
its businesses and its brands.
LAT EST N EWS A BOU T
OU R M A ISONS
We send Club members several publications (by email
or post as they prefer), such as the twice yearly Letter
to Shareholders and the annual issue of Apartés, our
Club magazine. The Annual Report is sent to those who
request it using an online form.
V ISITS TO
EXC EPT IONA L SIT ES
Club members can visit exceptional sites where they
receive an especially warm welcome: from Hennessy’s
centuries’ old cellars to the magnificent crayères at
Veuve Clicquot. They also get the opportunity to discover
our Maisons at unique locations such as the Louis Vuitton
workshops in Asnières.
EXC LUSI V E OF F ER S FOR
T H E GROU P’ S PRODUC TS
In addition to special offers on a selection of the Group’s
wines and spirits, Club members can purchase
discounted subscriptions to Group media publications
– Les Échos, Investir and Connaissance des Arts –
Listed on: Eurolist by Euronext Paris
Stock market capitalization: €208 bn as of 12/31/2019
(the largest capitalization on the Paris stock market)
Number of shares: 505,431,285 as of 12/31/2019
Member of indices: CAC 40, Dow Jones Euro Stoxx 50,
MSCI Europe, FTSE Eurotop 100, Global Dow and
FTSE4Good.
SHA R EHOLDER
ST RUCT U R E (1)
(November 2019)
Arnault
family
group
47.3%
Treasury
stock
0.4%
French
institutional
investors
9.4%
Individuals
5.0%
Foreign
institutional
investors
37.9%
(1) Voting rights: Arnault family group 63.4%; Other 36.6%.
AGEN DA
and order priority-access tickets for the Fondation
Tuesday, January 28, 2020: 2019 annual revenue and results
Louis Vuitton.
A W EB SIT E DEDICAT ED
TO C LU B M EM BER S
The detailed program of the Club’s visits, as well as
Thursday, April 16, 2020: 2020 first-quarter revenue
Tuesday, June 30, 2020: Shareholders’ Meeting
Thursday, July 9, 2020: payment of the final dividend
for fiscal year 2019
July 2020: 2020 half-year revenue and results
the exclusive offer of Wines and Spirits, subscriptions to
October 2020: 2020 third-quarter revenue
the Group’s newspapers and magazines and tickets
to the Fondation Louis Vuitton are available via the
Club’s website at www.clublvmh-actionnaires.fr. This
private online space, dedicated to Club members, can
be accessed once you have activated your account.
CON TACTS
Investor and Shareholder Relations
Tel.: +33 (0)1 44 13 27 27
Shareholders’ Club
Tel.: +33 (0)1 44 13 21 50
S T O C K M A R K E T
P E R F O R M A N C E M E A S U R E S
LVMH STOCK MARKET DATA
(in euros)
2017
2018
2019
CHANGE IN THE DIVIDEND
(in euros)
2017(1)
2018
2019
High (mid-session)
260.55
313.70
Low (mid-session)
175.80
232.50
Year-end share price
245.40
258.20
419.50
243.65
414.20
Gross dividend
Change for the year
Payout ratio
5.00
25%
47%
Change during the year
(%)
Change in the CAC 40
(%)
Market capitalization
at Dec. 31 (EUR bn)
35%
5%
60%
Basic Group share
of net earnings per share
10.68
12.64
9%
–11%
26%
124.0
130.0
208.0
(1) Restated to account for the impact of the application of IFRS 9 Financial Instruments.
(2) At a meeting on April 15th, 2020, the LVMH Board of Directors assessed the
economic situation resulting from the Covid-19 pandemic and, in light of current
events and governmental recommendations, decided to propose a 30% reduction
in the dividend announced on January 28th for Shareholders’ approval at the AGM
on June 30th, 2020.
6.00
4.80(2)
20%
47%
–20%
34%
14.25
COMPARISON BETWEEN THE LVMH SHARE PRICE AND THE CAC 40 INDEX SINCE JANUARY 2, 2017
(in euros)
450
425
400
375
350
325
300
275
250
225
200
175
150
125
100
75
50
25
0
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
FJDNOSAJJMAMFJ
M A
M
2017
OSAJ
J
2018
DN
JJMAMFJ
2019
LVMH
CAC 40 rebased
Volume of transactions (right-hand scale)
A
DNOS
0
Building on the momentum of a very good first half of the year, stock markets continued to climb in the second
half, with the CAC 40 seeing its strongest annual growth in 20 years. The resumption of quantitative easing by
the ECB, combined with three successive benchmark rate cuts in the United States, were key drivers of this bullish
trend. This performance was achieved in a persistently uncertain environment, particularly with regard to trade
talks between the United States and China, which remained at the forefront of investor concerns throughout the year.
Still, the last quarter ended on a more positive note with an agreement being reached on the first phase of the deal
which, without ending tensions outright, leaves hope for a certain easing in trade relations between the two countries.
Against this backdrop, the CAC 40 and Euro Stoxx 50 indices finished 2019 with gains of 26% and 25%, respectively.
The LVMH closing share price ended the year up 60%, at €414.20, after having reached a new record high toward
the end of the year. LVMH’s market capitalization was €208 billion as of December 31, making it the largest company
on the Paris stock exchange.
134 • 135
LVMH 2019 . Performance measures F I N A N C I A L
P E R F O R M A N C E M E A S U R E S
2019 REVENUE BY REGION
(in %)
Other
markets
11%
Asia
(excl. Japan )
30%
Japan
7%
France
9%
Europe
(excl. France)
19%
United States
24%
REVENUE
(EUR millions)
53,670
46,826
42,636
STORES
(number)
4,915
4,374
4,592
2017
2018
2019
PROFIT FROM RECURRING OPERATIONS
(EUR millions)
11,504
10,003
8,293
2017
2018
2019
2017
2018
2019
REVENUE BY BUSINESS GROUP
(EUR millions)
PROFIT FROM RECURRING OPERATIONS BY BUSINESS GROUP
(EUR millions)
Wines & Spirits
2019
5,576
Change
2019/2018
Organic
growth(1)
+8%
+6%
Wines & Spirits
Fashion & Leather Goods
22,237
+20%
+17%
Fashion & Leather Goods
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
Other activities
and eliminations
6,835
4,405
14,791
(174)
+12%
+7%
+8%
–
+9%
+3%
+5%
–
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
Other activities
and eliminations
2019
1,729
7,344
683
736
1,395
(383)
Change
2019/2018
Operating
margin(1)
+6%
3 1.0%
+24%
33.0%
+1%
+5%
+1%
–
10.0%
1 6.7%
9.4%
–
TOTAL LVMH
53,670
+15%
+10%
TOTAL LVMH
11,504
+15%
21.4%
(1) At comparable structure and exchange rates. The currency effect was +3% and
the structural impact, +1% (integration of Belmond since April 2019).
(1) As % of revenue of each business group.
NET PROFIT, GROUP SHARE
(EUR millions)
7,171
6,354
5,365
OPERATING INVESTMENTS
(EUR millions)
3,294
3,038
2,276
2017
2018
2019
2017
2018
2019
FREE CASH FLOW
(EUR millions)
6,167
5,452
4,696
2017
2018
2019
EQUITY AND RATIO
OF NET FINANCIAL DEBT
TO EQUITY
(EUR millions and %)
38,365
33,957
30,377
SIMPLIFIED BALANCE SHEET AS OF 12/31/2019
(EUR billions and % of balance sheet total)
96.5
96.5
73%
N o n - c u r r e n t
a s s e t s
40% E q u i t y
14% I nv e n t o r i e s
13% O t h e r
c u r r e n t a s s e t s
37% N o n - c u r r e n t
l i a b i l i t i e s
23% C u r r e n t
l i a b i l i t i e s
Assets Liabilities
and equity
NET FINANCIAL DEBT(1)
(EUR millions)
7,153
6,206
5,487(1)
24%
16%(1)
16%
2017
2018
2019
(1) Belmond shares deducted from net debt (€274 million).
2017
2018
2019
Further information can be found in the 2019 Universal Registration Document.
136 • 137
LVMH 2019 . Performance measures N O N - F I N A N C I A L
P E R F O R M A N C E M E A S U R E S
BREAKDOWN OF EMISSIONS BY BUSINESS GROUP
(in metric tons of CO2 equivalent)
ENERGY CONSUMPTION BY BUSINESS GROUP
(in MWh)
CO2
emissions
in 2018
CO2 emissions
in 2019
pro forma(1)
Change(1)
(in %)
2018
2019
pro forma(1)
Change(1)
(in %)
Wines
& Spirits
Fashion &
Leather Goods
Perfumes
& Cosmetics
Watches
& Jewelry
Selective
Retailing
40,845
40,442
113,783
108,692
–1%
–4%
–
12,807
7,027
12,832
6,332
–10%(2)
88,089
70,764
–20%(2)
Other activities
3,319
3,340
TOTAL
265,870
242,402
+1%
–9%
(1) Value and change at constant scope.
(2) Change related to the transition to renewable energy and the rollout of more
energy-saving technologies.
Wines
& Spirits
Fashion &
Leather Goods
Perfumes
& Cosmetics
Watches
& Jewelry
Selective
Retailing
220,454
222,785
393,598
385,516
94,044
94,021
40,935
38,773
286,514
306,319
Other activities
22,006
21,086
TOTAL
1,057,551
1,068,500
(1) Value and change at constant scope.
+1%
–2%
–
–5%
+7%
–4%
+1%
WATER CONSUMPTION BY BUSINESS GROUP
(process requirements in m3)
SOCIAL AND/OR ENVIRONMENTAL AUDITS AND
MONITORING OF OUR SUPPLIERS BY REGION IN 2019
2018
2019
pro forma(1)
Change(1)
(in %)
1,193,364
1,247,673
+5%
Europe
1,840,355
1,911,342
+4%
Asia
204,089
195,700
80,566
80,516
–4%
–
401,708
311,317
–23%(2)
North America
Other markets
TOTAL
Total number
Wines
& Spirits
Fashion &
Leather Goods
Perfumes
& Cosmetics
Watches
& Jewelry
Selective
Retailing
Other activities
264,989
184,408
–30%(3)
TOTAL
3,985,070
3,930,956
–1%
(1) Value and change at constant scope.
(2) Change related to the installation of new equipment at a site.
(3) Change related to exceptional works in 2018 and improvements in reporting
process.
Breakdown
of suppliers
(in %)
Breakdown
of audits
(in %)
66%
13%
14%
7%
100%
1,261
76%
22%
1%
1%
100%
1,589
LVMH 2019 . P e r f o r m a n c e m e a s u r e s
EMPLOYEES(1)
BREAKDOWN BY BUSINESS GROUP (as of December 31, 2019)
163,309
156,088
145,247
2017
2018
2019
(1) Total permanent and fi xed- term headcount.
2019(1)
7,671
53,456
30,427
9,426
57,383
Wines & Spirits
Fashion &
Leather Goods
Perfumes
& Cosmetics
Watches
& Jewelry
Selective
Retailing
Other activities
TOTAL
4,946
163,309
(1) Total permanent and fi xed-term headcount.
(2) Under permanent contracts.
As %
of total
%
women(2)
5%
33%
19%
6%
35%
3%
100%
38%
67%
83%
59%
83%
37%
73%
BREAKDOWN BY AGE(1)
(Median age: 33 years)
BREAKDOWN OF PERSONNEL
BY PROFESSIONAL CATEGORY (as of December 31, 2019)
Age: under 25
12%
20%
20%
15%
11%
9%
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60 and up
6%
4%
3%
2019(1)
32,004
15,333
93,575
As %
of total
%
women(2)
20%
9%
57%
65%
68%
80%
22,398
14%
59%
Executives
and managers
Technicians
and supervisors
Administrative
and sales
employees
Production
workers
TOTAL
163,309
100%
73%
(1) Under permanent contracts.
(1) Total permanent and fi xed- term headcount.
(2) Under permanent contracts.
TRAINING INVESTMENT
(EUR millions)
138.0
131.0
121.5
2017
2018
2019
BREAKDOWN BY REGION (as of December 31, 2019)
France
Europe
(excl. France)
United States
Japan
Asia (excl. Japan)
Other markets
2019(1)
33,701
40,453
31,483
7,391
38,109
12,172
As %
of total
%
women(2)
21%
25%
19%
5%
23%
7%
64%
72%
78%
73%
77%
73%
TOTAL
163,309
100%
73%
(1) Total permanent and fi xed- term headcount.
(2) Under permanent contracts.
Further information can be found in the 2019 Universal Registration Document.
138 • 139
Photographs
Cover: Dior, Brigitte Niedermair – p. 4: Samaritaine – p. 6: Jamel Toppin – p. 10: Samaritaine, Julien Luttenbacher – p. 12, 15:
Jean-François Robert – p. 13: Louis Vuitton Malletier – p. 17: Hennessy, Alain Benoit – Louis Vuitton Malletier, Angelo Pennetta –
Guerlain, Pierrick Jégou – Bvlgari – Le Bon Marché Rive Gauche, Gabriel de la Chapelle – Cheval Blanc, S. Candito – p. 18, 123,
124: Fendi – p. 22: Gpesenti, CC BY-SA 3.0/Picture cropped and turned in B&W – p. 24: Gabriel de la Chapelle – p. 26: DR – p. 29:
Nora Houguenade – p. 30: Lapo Quagli – p. 34, 50, 60, 70, 80, 90: Julia Spiers – p. 38: Fondation Louis Vuitton, © Gehry Partners,
LLP and Frank O. Gehry – Photo Iwan Baan, 2014 – p. 40: Charlotte Perriand, House for a Young Man, Brussels International Exposition,
1935 (reconstruction): Manifesto sideboard – Le Corbusier, Pierre Jeanneret, Charlotte Perriand © F.L.C./Adagp, Paris, 2019 ;
© Fondation Louis Vuitton/Marc Domage – Edouard Manet, A Bar at the FoliesBergère, 1882 – The Courtauld Gallery, London
© Fondation Louis Vuitton – p. 42: Loro Piana – p. 46: Château Cheval Blanc, Gérard Uféras – p. 48: Dom Pérignon – p. 52: Moët &
Chandon, Agence Ogilvy – p. 53: Veuve Clicquot, Andrea Urbez – p. 54: Krug, Lee Paul Coad & Kim Lightbody – Maison Ruinart
– p. 55: Jas Hennessy & Co, DDB – p. 56: Louis Vuitton Malletier, Angelo Pennetta – p. 58: Louis Vuitton Malletier, Leonce Raphael
Agbodjelou – p. 62: Louis Vuitton Malletier, Craig McDean – p. 63: Dior, Adrien Dirand – p. 64: Celine, Hedi Slimane – p. 65: Berluti
– p. 66: Guerlain, Pierrick Jégou – p. 68, 72, 74, 106, 107: Christian Dior Parfums – p. 73: Parfums Givenchy, Guido Mocafico
– p. 75: Guerlain, Alain Costa – p. 76, 78, 82, 99: Bvlgari – p. 83, 129: TAG Heuer – p. 84: Hublot – p. 85: Zenith Communication and
Marketing Department, Zenith Branch of LVMH Swiss Manufactures SA – Chaumet, Karim Sadli – p. 86, 94: Le Bon Marché Rive
Gauche, Gabriel de la Chapelle – p. 88, 92, 94, 112: Sephora – p. 93: DFS, Fondaco Facade, Matteo de Fina – p. 94: DFS – p. 100, 101, 102:
Louis Vuitton Malletier, Rosewood – p. 103, 104: Loro Piana, Giulio Di Sturco – p. 108: Louis Vuitton Malletier, Cyrille Jerusalmi
– p. 109, 110: Belmond – p. 113, 116: Dior – p. 113: Dior, Nadine Ijewere – p. 114: Dior, Raphaël Dautigny – p. 117: Guerlain, Zoe Fidji – p. 118, 119:
Hennessy, Alain Benoit – p. 120: Hennessy, Christophe Barraud – p. 121: Maison Ruinart, Mouawad Laurier – p. 122: Dior & Rimowa,
Adrien Dirand – p. 126: Samaritaine, Vladimir Vasilev – p. 126, 127: Samaritaine, Pierre-Olivier Deschamps, Agence VU’
– p. 128: Cheval Blanc, Saint-Tropez, E. Labouérie - V. Mati – p. 130, 131: Loewe – Other photographs: LVMH and Group Maisons’ libraries.
This document was printed on paper from responsibly managed forests,
certified FSC® (Forest Stewardship Council®).
LVMH – 22, avenue Montaigne – 75008 Paris – France
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LVMH 2019 . Performance measures
LVMH 2019 . Performance measures 4 • 4