2 02 0 A N N UA L R E P ORT
Passionate
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. From the outset, Bernard Arnault gave the Group
a clear vision: to become the world leader in luxury, with a
philosophy summed up in its motto, “Passionate about creativity”.
Today, the LVMH Group comprises 75 exceptional Maisons, each
of which creates products that embody unique craftsmanship,
carefully preserved heritage and resolute modernity. Through
their creations, the Maisons are the ambassadors of a refined,
contemporary art de vivre.
LVMH nurtures a family spirit underpinned by an unwavering
long-term corporate vision. The Group’s vocation is to ensure the
development of each of its Maisons while respecting their identity
and their autonomy, by providing all the resources they need to
design, produce and distribute their creations through carefully
selected channels.
Our Group and Maisons put heart and soul into everything
they do. Our core identity is based on the fundamental values
that run through our entire Group and are shared by all of us.
These values drive our Maisons’ performance and ensure their
longevity, while keeping them attuned to the spirit of the times
and connected to society. Since its inception, the Group has made
sustainable development one of its strategic priorities. Today, 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.
Our philosophy: Passionate about creativity
T H E VA L U E S O F A D E E P LY
C O M M I T T E D G R O U P
Being creative and innovative
Creativity and innovation are part of LVMH’s DNA; throughout the years,
they have been the keys to our Maisons’ success and the basis of their
solid reputations. These fundamental values of creativity and innovation
are pursued in tandem by our Group’s Maisons as they focus on achieving
the ideal balance between continually renewing their offer while
resolutely looking to the future, always respecting their unique heritage.
Delivering excellence
Within the Group, quality can never be compromised. Because
the Maisons embody everything that is most noble and accomplished
in the world of fine craftsmanship, they pay extremely close attention
to detail and strive for perfection: from products to services,
it is in this quest for excellence that the Group differentiates itself.
Cultivating an entrepreneurial spirit
The Group’s agile, decentralized structure fosters efficiency
and responsiveness. It encourages individuals to take initiative
by giving everyone a significant level of responsibility.
The entrepreneurial spirit promoted by the Group makes risk-taking
easier and encourages perseverance. It requires a pragmatic approach
and the ability to motivate staff to achieve ambitious goals.
Taking action to make a difference
Every action taken by the Group and its employees reflects
our commitment to ethics, corporate social responsibility and respect
for the environment. They drive our Maisons’ performance and
ensure their longevity. Firmly convinced that truly desirable products
can only come from sustainable businesses, we are committed
to ensuring that our products and the way they are made have a positive
impact on our entire ecosystem and the places we operate,
and that our Group is actively working to build a better future.
2 • 3
Louis Vuitton, Towards a Dream, Iceland.
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 2020
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
E X P L O R E T H E W O R L D
O F O U R M A I S O N 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
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30
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70
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4 • 5
S E I Z E T H E I N I T I A T I V E
C R I S E S A R E D E C I S I V E M O M E N T S
W H E R E S T R A T E G I E S A R E P U T T O
T H E T E S T A N D T R E N D S A C C E L E R A T E .
T H I S O N E I S N O E X C E P T I O N . A S T H E R E S U LT S
T H E LV M H G R O U P H A S R E P O R T E D F O R 2 0 2 0
D E M O N S T R A T E , T H E E N T R E P R E N E U R I A L S P I R I T ,
C R E A T I V I T Y A N D S E N S E O F R E S P O N S I B I L I T Y
T H A T D R I V E U S W E R E V E R Y P O W E R F U L F O R C E S
W H I C H K E P T U S O N T R A C K D U R I N G
T H E PA N D E M I C . 2 0 2 1 L O O K S S E T T O B E A Y E A R
O F R E C O V E R Y, A N D O U R G R O U P I S R E A D Y.
RESIST
“Seize the initiative”. That was my mindset as the effects of the crisis started to become apparent
in early 2020, and I did what I could to imbue the whole Group with this fighting spirit. One year on,
I am proud to say LVMH has faced up with remarkable resilience to the unparalleled public health
crisis that has swept around the world; the commitment shown by all of our teams has been unfailing,
and I would like to recognize and thank them for their dedication. Of course, the pandemic has
affected all of our activities, albeit to varying extents over different periods and regions. But thanks
to the mobilization of their teams, our Maisons responded swiftly, remained focused and kept their
strong sense of initiative as they took effective measures delivering immediate results. While the halt
to international travel severely affected some of LVMH’s activities, particularly hotels and travel retail,
Asia bounced back strongly in the second half of year, at the same time as the United States was also
seeing a significant upturn. Business and geographical diversification, which are such an important
priority for me, played a powerful role in attenuating the impact of the shocks. But most of all, our
major brands extended their lead, just as they did in 2008-2009: their high-quality products, bound-
less creativity and strong drive to innovate shone through in these troubled times and are the gold
standard for our customers, who are looking for products that stand the test of time. Louis Vuitton
and Christian Dior, in particular, performed remarkably well in the second half of 2020 thanks to the
success of their iconic models and new additions. Likewise, Hennessy cognac showed good resilience,
reinforcing its status as the world’s leading premium spirits brand.
All in all, our Group was able to overcome the situation thanks to a combination of key strengths:
effective investment decisions in recent years, which have expanded our range of Maisons and
products, and have driven a major shift to digital technology across our activities; and a healthy
geographical mix alongside a decentralized organization, underpinned by a highly diverse range of
talents, backgrounds and cultures, fostering entrepreneurial spirit and agility: qualities that the events
of the past year have – if proof were needed – proven indispensable.
6 • 7
LVMH 2020 . Chairman’s message PROTECT
“Seize the initiative” is also a phrase that guided me in all the health and safety-related decisions the
Group has made. As soon as the crisis began, LVMH’s unwavering priority was to protect the health
and safety of our customers and employees. I made sure that all our Maisons took every possible
measure to support our teams and keep them safe and healthy by setting up a dedicated task force.
Its role will continue even after the public health crisis has subsided, further reinforcing our occupa-
tional health and safety policy over the long term across all our activities. In parallel, this sense of
concern prompted our Group to play an active part in the collective effort to combat the pandemic.
Many of our Maisons put their usual operations on hold to use their manufacturing facilities and logis-
tics know-how for the greater good, with their own employees very often taking the initiative to do
so. Throughout the world, these initiatives helped provide emergency supplies of face masks, gowns,
hand sanitizer, ventilators and other essential equipment for hospitals and local communities. Seeing
our people spontaneously rally around those in need has been an honor for our Group, and I am truly
grateful to everyone involved in this immense outpouring of support.
ENGAGE
“Seize the initiative” also means listening to the world around us, being attuned to the times and
grasping what citizens in every country want to change. Our vast number of diverse locations helps
us keep our finger on the pulse of emerging trends and changing views within society that point to
what our customers will be looking for in the future. Our ability to engage, which is enshrined in
LVMH’s values, was clear throughout the year, which saw initiatives championing the environment,
sustainable development and inclusion. For many years we have been making products to the highest
standards in terms of working conditions, biodiversity conservation efforts and carbon footprint
reductions, and as such our holistic approach is now regarded as a model for our sector. Our Maisons,
which have earned a reputation for the durability of their products and their expert craftsmanship,
are leading the field in environmental responsibility.
Likewise, from a social responsibility perspective, our Group and its Maisons demonstrated unrivalled
engagement, as shown by the support they expressed for the African-American community in the
United States. We are also justifiably proud to have joined the International Labour Organization (ILO)
Global Business and Disability Network, which works to promote the inclusion of people with disabil-
ities in the workplace. This emphasis on social inclusion and knowledge sharing is also illustrated by
the success of our Institut des Métiers d’Excellence, where the number of individuals trained since it
was formed surpassed the symbolic 1,000-mark in 2020. Lastly, we made sure that we maintained
fair, transparent and trust-based relationships with all our partners and suppliers, particularly with the
aim of supporting those experiencing difficulties as a result of the pandemic. Our activities, especially
those based in France, provide work for an ecosystem of indirect jobs and talents, which we endeavor
to sustain.
In addition, since we launched our pioneering environmental policy in 1992, we have constantly
stepped up efforts to mitigate the impacts of our activities, especially with regard to biodiversity,
water and the climate. And we reached a number of key milestones in 2020, in several different
areas, such as the more carbon-efficient shipping strategy devised by Hennessy and the new sus-
tainably designed case for Ruinart cuvées. In general, all our Maisons are implementing ambitious
environmental programs. Some, such as Guerlain and Stella McCartney, have made these a powerful
growth driver and part of their core identity. Lastly, now that we have by and large achieved the
environmental targets we set ourselves for 2020, we want to go even further and scale up
our efforts by launching our new LIFE 360 initiative. This program is built around four priorities
– the climate, biodiversity, creative circularity and transparency – and will become the Group’s
environmental compass.
INNOVATE
One of the underlying trends accentuated by the pandemic was the digitalization of our operations,
which accelerated sharply in 2020, thanks to the lead we had already built up in this area and the
rapid adjustment of our working methods. The surge in e-commerce partly offset the closure of the
Group’s stores, especially at Sephora, which achieved record online sales. More generally, all of our
Maisons have outdone themselves in unleashing their ingenuity and creative spirit to enhance their
appeal, sustain the ties they have built with their customers and deliver unparalleled digital experi-
ences. Christian Dior Couture’s digital fashion shows will go down as one of the highlights of this year
unlike any other, providing an enthralling interlude of creativity and imagination. Shows staged and
filmed by Hedi Slimane for Celine had a major impact. Jonathan Anderson for Loewe, Nicolas
Ghesquière and Virgil Abloh for Louis Vuitton also unveiled their collections to breathtaking effect.
At the same time, we paid considerable attention to developing our Maisons’ manufacturing facilities,
as well as enhancing the excellence of their physical and online distribution channels. The quality of
the purchasing experience we offer our customers remains paramount.
ANTICIPATE
Where we now stand in early 2021, we are proud to welcome Tiffany and its teams to our Group. The
brand – an American icon – stands for a unique form of joy and love, and its famous blue box is
coveted the world over. I am convinced that we will be able to make its star shine ever more brightly,
helping it innovate and grow with the same determination and passion we have devoted to each of
our Maisons over the years.
While promising breakthroughs offer a glimpse of the gradual end of the pandemic, LVMH still faces
a number of challenges. And the uncertain economic environment in which we operate means that
we need to remain vigilant. That will be our course of action for the coming months, to make sure we
stay optimally positioned to seize opportunities arising from the anticipated recovery in 2021. Our
Group has made major strides forward, and its foundations are solid – as reflected by its market
appreciation in 2020 – but there is still plenty of potential for development. Let’s use our imagination
to explore that potential.
Crises make us stronger. Our Maisons have experienced their fair share of them during their many
decades in existence, but as long as we learn from them, they can be a powerful driver for the ensuing
years of growth. As in the past, the key to turning this trying time into a success is using our insight
to craft creative, innovative products that elicit desire.
This crisis and the months of lockdown we have lived through have also shown that customer demand
for our iconic products is perhaps higher than ever, driven by the desire to take part in and share the
unforgettable experiences they offer: the moment you open a bottle of Château d’Yquem and the
rich bouquet of aromas evokes the golden light of a sun-drenched vineyard; the feeling of being
transported through time by the scent of rare flowers encased in a bottle of Guerlain or Dior perfume;
the thrill of opening a robin’s-egg blue box from Tiffany’s or contemplating a Bvlgari necklace; the
enveloping softness of Loro Piana’s precious fabrics, or the most exquisitely finished leathers crafted
by Louis Vuitton, Fendi or Loewe; the sumptuous drape of a Christian Dior or Celine dress; the endlessly
fascinating movement of a TAG Heuer or Hublot timepiece… Our Maisons hold the infinite promise of
wonder. They embody authenticity and quality, giving life so many beautiful flavors. They spark what
is ultimately the driving force behind life itself: desire.
Bernard Arnault
Chairman and Chief Executive Officer
8 • 9
LVMH 2020 . Chairman’s message Louis Vuitton, Towards a Dream, Iceland.
Château d’Yquem
Château d’Yquem
T R A N S F O R M I N G
C O N S T R A I N T S
I N T O O P P O R T U N I T I E S
ANTONIO BELLONI,
GROUP MANAGING DIRECTOR
2020 was a year unlike any other.
How did LVMH get
through this turbulent period?
and creativity. We witnessed a tremendous collective
energy, reflecting a keen sense of belonging to the Group,
which will be remembered for a long time.
2020 was indeed an unprecedented year. The crisis cre-
ated difficult conditions for our customers and our teams,
with everyone having to deal with tough restrictions on
What lasting lessons
did these events teach us?
their personal and professional freedoms. Of course, this
While it is still too soon to take stock of the crisis, which
situation had repercussions for our Group and its Maisons.
is not completely behind us, we have definitely learned
Our operations directly linked to people’s social lives and
a great deal. It underscored the importance of being
tourism, in particular, were hit by the closure of restau-
able to adapt to an abrupt shift in market conditions
rants, bars and hotels in many countries, and by the sud-
affecting demand, working methods, and the usual
den drop in airport passenger traffic. However, LVMH’s
production and consumption cycles. We managed to do
major brands performed very well, providing further
that successfully, coordinating store closure / reopening
proof of their power and dynamism: they helped the
phases in real time, while adjusting our communication,
Group weather the crisis and extend its leadership.
sales channels and supply chains.
And that largely reflects how extraordinarily well
Recent events have also highlighted our responsibility,
our teams responded to events. Right from the outset,
and the importance of our role of protecting our cus-
they showed remarkable dedication, getting involved
right away to help fight the pandemic. They displayed
tomers and our employees: reorganizing how we work,
adopting strict health and safety measures, and fully
tremendous adaptability in managing our business
supporting our partners – especially the many small
activities at every level as circumstances changed. Time
businesses, craftspeople and suppliers who are so crucial
and time again, they proved their courage, generosity
to our Maisons’ creativity and supply chains.
Tiffany & Co.
Lastly, everything we accomplished under these con-
house’s history alongside its existing teams in 2021. It is
straints is bound to provide inspiration and opportunities
a great opportunity for our Group. Next, our Maisons
in the future: store-based sales associates getting
have significantly accelerated their adoption of digital
involved with remote sales; local teams stepping in to
technology as they forge closer ties with the younger
organize events; the creativity unleashed to rethink how
generations for whom influencers are so important.
we engage with our customers; and, of course, the
Lastly, our business model is now more in touch than ever
growing role played by digital technology in customer
with the major issues of our time: a desire for greater
interactions and in the day-to-day operation of the
diversity, inclusiveness, environmental protection and
organization.
solid roots in local regions.
What’s the Group’s mindset
going into 2021?
Our customers’ lifestyles and needs have undergone a
shift, and now place greater importance on local and
regional experiences before international tourism
resumes on a larger scale. But we had already anticipated
Above all, we want to see the pandemic overcome or
these changes. Our teams have always worked hard to
brought under control as quickly as possible so that
ensure our Maisons’ appeal and their resonance with
everyone’s personal and professional life can finally get
contemporary issues. It is embedded into our Group’s
back to some semblance of normality. We anticipate the
identity, and the crisis has revealed just how crucial it is.
disruption to our business will continue at least for the
So we are stepping up investment in new skills, and will
first part of the year. But in the medium term we have
every reason to be optimistic.
continue to give talented young people the time and
resources they need to express their potential. Today, as
First, we are thrilled Tiffany has joined us as one of our
in the past, that is the key to our future.
highly prized Maisons, and we are excited at the prospect
of starting to write a new chapter in this iconic jewelry
12 • 13
LVMH 2020 . 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
and granting of guarantees in order to finance the
Company that is primarily responsible for enhancing
acquisition of Tiffany & Co. and approved the signing of
the Company’s value and protecting its corporate
a settlement agreement to end to all legal action, thus
interests, taking into account the social and environ-
enabling the acquisition to be finalized. The Board also
mental issues facing its business and, where applicable,
(i) reviewed the rules for allocating compensation to
the Company’s mission statement (raison d’être in
company officers for work performed in that capacity,
French), as laid down pursuant to Article 1835 of the
(ii) approved the Company’s Charter on control proce-
French Civil Code. It also endeavors to promote the
dures for regulated agreements and the assessment of
Company’s long-term value creation, in particular by
agreements relating to current operations concluded
taking into account the social and environmental issues
under normal conditions and (iii) amended the Charter
facing its business. Its principal assignments are to
of the Board of Directors as well as the rules of proce-
approve the Company’s and the Group’s major strategies
dure of the Nominations & Compensation Committee,
and supervise their implementation; to verify the fair
the Performance Audit Committee and the Ethics &
and accurate presentation of information about the
Sustainable Development Committee.
Company and the Group; to protect its corporate
Amidst the public health crisis arising from the Covid-19
assets; and to ensure that core business risks are fully
pandemic, the Board decided (i) to postpone the Share-
accounted for in the management of the Company. It
holders’ Meeting to June 30, 2020 and hold it in closed
also ensures that procedures to prevent corruption and
session, and (ii) to reduce by 30% the overall amount
influence-peddling are implemented, and that a non-dis-
of the ordinary dividend initially to be proposed at the
crimination and diversity policy is in place, notably with
Shareholders’ Meeting. The Board also decided, (i) on
regard to gender equality within the governing bodies
the recommendation of Bernard Arnault, as Chairman
of the Group and, on the recommendation of Executive
and Chief Executive Officer, and of each of the other
Management, sets diversity targets for these bodies.
Board members holding executive positions within the
Lastly, it acts as guarantor with respect to the rights of
Group, to waive their fixed compensation for the months
each of its shareholders and ensures that shareholders
of April and May 2020 as well as the entirety of their
fulfill all of their duties.
variable compensation in respect of 2020, and (ii) to
In fiscal year 2020, the Board of Directors approved the
reduce the total gross amount of the compensation
annual and interim parent company and consolidated
attributable to each of the Company’s Directors and
financial statements, monitored quarterly business
Advisory Board members in respect of their duties for
activity, and gave its opinion on the Group’s key strategic
fiscal year 2020 by 30%. Lastly, the Board of Directors
direction and decisions, its budget, compensation of
welcomed a Director representing the employees
company officers, the implementation of a bonus perfor-
appointed by the LVMH Group Works Council; the second
mance share allocation plan, and the implementation
Director representing the employees appointed by the
of the share buyback authorization. It authorized an
extension to the implementation of financing programs
SE Works Council joined the Board in January 2021 for
scheduling reasons.
Further information can be found in the 2020 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 & Tiffany
Chantal Gaemperle
Human Resources and Synergies
Andrea Guerra
LVMH Hospitality Excellence
Jean-Jacques Guiony
Finance
Christopher de Lapuente
Selective Retailing & 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 (4)
Dominique Aumont
Director representing the employees
Nicolas Bazire
Marie-Véronique Belloeil-Melkin
Director representing the employees
Sophie Chassat (1)
Charles de Croisset (1) (2) (3)
Lead Director
Diego Della Valle (1)
Clara Gaymard (1) (2)
Iris Knobloch (1)
Marie-Josée Kravis (1) (3)
Marie-Laure
Sauty de Chalon (1) (4)
Yves-Thibault
de Silguy (1) (2) (3) (4)
Natacha Valla (1)
Hubert Védrine (1) (4)
Advisory Board members
Yann Arthus-Bertrand
Lord Powell of Bayswater
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) Member of the Performance
Audit Committee.
(3) Member of the Nominations &
Compensation Committee.
(4) Member of the Ethics &
Sustainable Development Committee.
LVMH 2020 . 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 1837 TIFFANY & CO. 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
1955 CHÂTEAU DU GALOUPET 1957 PARFUMS GIVENCHY 1958 STARBOARD
CRUISE SERVICES 1959 CHANDON 1960 DFS 1969 SEPHORA 1970 KENZO 1970
CAPE MENTELLE 1972 PARFUMS LOEWE 1974 INVESTIR-LE JOURNAL
DES FINANCES 1975 OLE HENRIKSEN 1976 BELMOND 1976 BENEFIT
COSMETICS 1977 NEWTON 1980 HUBLOT 1983 RADIO CLASSIQUE 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 2006 MAISONS CHEVAL BLANC 2006 CHÂTEAU D’ESCLANS
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 2020 EMINENTE
O U R B U S I N E S S G R O U P S
W IN ES & SPIR ITS
Moët & Chandon, Dom Pérignon, Krug, Veuve Clicquot, Hennessy, Château d’Yquem,
Cheval Blanc, Clos des Lambrays… the origins of all these world-famous estates are
inextricably linked to the appellations and terroirs of the world’s most prestigious
wines and spirits. Whether they are in Champagne, Bordeaux, or other famed wine
regions, these Maisons, many of which date back more than a century, all share
a powerful culture of excellence.
FA SH ION & LEAT H ER GOODS
The Fashion & Leather Goods business group comprises Louis Vuitton, Christian
Dior Couture, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs,
Berluti, Loro Piana, RIMOWA and Patou. While respecting the identity
and autonomous management of these brands, LVMH supports their growth
by providing them with shared resources.
PER FU M ES & COSM ET IC S
LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of
world-famous French brands: Christian Dior, Guerlain, Givenchy and Kenzo. The Group
also owns other beauty brands: Benefit, Fresh, Acqua di Parma, Perfumes Loewe,
Make Up For Ever, Maison Francis Kurkdjian, Fenty Beauty by Rihanna, KVD Vegan
Beauty and Marc Jacobs Beauty.
WATC H ES & J EW ELRY
The LVMH Watches & Jewelry Maisons are some of the most emblematic brands
in the industry. They operate in jewelry and watches with Bvlgari, Chaumet, Fred,
TAG Heuer, Hublot and Zenith. These Maisons are guided by a daily quest
for excellence, creativity and innovation. 2021 will see the arrival within the Group
of the prestigious American jewelry house Tiffany.
SELEC T I V E R ETA ILING
The Selective Retailing business group comprises Sephora, the world’s leading
selective beauty retailer; Le Bon Marché, a Paris department store with a unique
atmosphere; and travel retailers DFS and Starboard Cruise Services.
OT H ER AC T I V IT IES
Other activities include Groupe Les Echos, which comprises leading French business
and cultural news publications; Royal Van Lent, the builder of high-end yachts
marketed under the brand name Feadship; Cheval Blanc and Belmond, which are
developing a collection of exceptional hotels.
16 • 17
LVMH 2020 . Our Maisons and business groups Christian Dior
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
being the benchmark for managing and developing
heritage, innovative mindset and receptive outlook. The
high-quality brands.
Group supports their development in a spirit of entrepre-
neurship, long-term vision and respect for the source of
Nurturing talent
their strength and stature.
As ambassadors of an authentic art de vivre, it is our
Encouraging all our employees to reach their full career
responsibility to set the right example in every aspect of
potential and achieve their aspirations. Developing diversity
our business, from product design to the experience that
and the wealth of human resources at our companies in
customers have throughout their relationships with the
all the countries where we operate, and encouraging
Group’s brands; from investment choices to social and
initiatives in these areas. Contributing to the knowledge
environmental initiatives. Because what we do requires a
and preservation of our crafts outside the Group in addi-
diverse range of talent, we are committed to training
tion to our own expertise as artisans and designers.
teams that embody excellence. Because passing on skills
is an integral part of our culture, we want to use that
Environment
opportunity to promote social inclusion and employ-
ment. Because our crafts make the most of nature at its
Working together to preserve the planet’s resources, to
purest and most beautiful, we see preserving the environ-
design and develop products that are compatible with
ment as a strategic imperative.
environmental concerns, reporting on our policies and
The values and actions encompassed by our sustainable
projects and the progress achieved in meeting our objec-
development attitude emerge from a tradition that dates
tives. Contributing to environmental protection above
back to the origins of our Maisons and forms an integral
and beyond factors directly related to our operations by
part of our heritage. Our long-term success depends not
entering into active partnerships with cooperating busi-
only on the Group’s solid business model and profitable
nesses, local authorities and nonprofits.
growth strategy, but also on our unwavering commit-
ment to creativity, excellence, and our environmental
Partnerships and support
impact and corporate citizenship.
Business performance
Maintaining and strengthening responsible relationships
with our partners, suppliers and subcontractors. Imple-
menting a patronage program for the widest possible
Combining profitable growth and sustainability with
commitments to creativity and excellence. Applying our
public benefit which reflects and transmits our funda-
mental values. Providing active support for major causes,
creative passion to the art de vivre to which our customers
humanitarian projects and public health programs, and
aspire. Strengthening our position as a global leader, and
developing initiatives in support of art and young people.
18 • 19
LVMH 2020 . 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
BUILT ON SIX PILLARS
1
—
Decentralized organization
Our structure and operating principles
2
—
Ver tical
integration
3
—
Sustaining
s avoir-faire
ensure that our Maisons are both auton-
Vertical integration fosters excellence
Our Maisons pursue a long-term
omous and responsive. This allows us to
both upstream and downstream, allow-
vision. To preserve their distinctive
be extremely close to our customers, to
ing control over every link in the value
identities and excellence, LVMH and
ensure that rapid, effective and appro-
chain – from sourcing and production
its Maisons have developed a range of
priate decisions can be made. This
facilities to selective retailing – which
initiatives to pass down skills and exper-
approach also sustains the motivation
in turn means that the image of our
tise, and promote craft trades and
of our employees, encouraging them
Maisons is carefully controlled.
design professions among younger
to show true entrepreneurial spirit.
generations.
4
—
Organic
growth
5
—
Creating
synergies
6
—
Balance across
business segments
and geographies
The LVMH Group places priority on
Sharing of resources on a Group scale
organic growth and commits signifi-
creates intelligent synergies while
Our Group has the resources to
cant resources to develop its Maisons,
respecting the individual identities
sustain regular growth thanks to the
as well as to encourage and protect
and autonomy of our Maisons. The
balance across its business activities
creativity. Our employees are key
combined strength of the LVMH Group
and a well-distributed geographic
to this approach, making it essential
is leveraged to benefit each of its
footprint. This balance means that we
to support their career growth and
Maisons.
encourage them to excel.
are well-positioned to withstand the
impact of shifting economic factors.
€4 4 .7bn
–17%
Revenue
€8 . 3 bn
–28%
Profit from
recur ring operations
€4 .7bn
–34%
Net profit
Group share
80
countries
5,003
stores
1 50,47 9
employees
75
Maisons
2020 REVENUE BY REGION
(in %)
2020 REVENUE BY BUSINESS GROUP
(in %)
Other
markets
11%
Asia
(excl. Japan )
34%
Jap an
7%
France
8%
Europe
(excl. France)
16%
United States
24%
Selective
Retailing and
Other activities
23%
Watches &
Jewelr y
7%
Perfu mes &
Cos metics
12%
Wines &
Spirits
11%
Fashion &
Leather Goods
47%
GEOGRAPHIC FOOTPRINT
(as of December 31, 2020)
UNITED STATES
Revenue: €10,6 47m
866 stores
24 ,749 employees
OTH ER MA RKETS
Revenue: €4,804m
508 stores
12,830 employees
FRANC E
Revenue: €3,333m
512 s tores
32,813 employees
EUROPE (excl. France)
Reven ue: €7,337m
1,175 stores
37,693 employees
JAPAN
Reven ue: €3,164m
428 stores
7,012 employees
ASIA (excl. Japan)
Reven ue: €15,366m
1,514 stores
35,382 employees
20 • 21
LVMH 2020 . Strategy and key figures Manufacturing hand sanitizer at the production unit
of Parfums Christian Dior in Saint-Jean-de-Braye.
C O M M I T M E N T S I N 2 0 2 0
IN 2020, LVMH ONCE AGAIN DEVOTED
RESOURCES AND SKILLS TO A RANGE OF INITIATIVES
SUPPORTING IMPORTANT CAUSES.
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, effective
decisions; and motivate our employees for the long
term by encouraging them to take an entrepreneurial
approach. This approach encourages risk-taking and
perseverance, and requires a practical mindset and
the ability to push our employees to outdo themselves.
We foster collective intelligence and run in-house
innovation development programs so that our boldest
employees can transform their innovative ideas into
business plans.
—
MARCH 2020
and podcasts, and offering specific career development
tools for female talent within the Group. Presented by
journalist Marie Drucker, Echo Day highlighted the
ambitions and innovative initiatives taken by the
Group and its Maisons to promote gender equality.
The program also provided an opportunity to unveil Tips
to the Top, a new series of podcasts in which 12 female
LVMH employees discuss their respective career
paths and talk about pivotal moments in their careers
– a rich anthology of experiences shared by women
united in their determination.
—
JULY 2020
LVMH INNOVATION AWARD 2020:
THE GROUP STANDS WITH STARTUPS
Every year since 2017, this special prize has been awarded
to an innovative startup as part of the Viva Technology
event. Despite the Covid-19 pandemic, which made it
impossible to come together in person for this interna-
ELLESVMH ECHO DAY: FEMALE GROUP
tional event in 2020, LVMH reaffirmed its support for the
EMPLOYEES MAKE THEIR VOICES HEARD
entrepreneurial ecosystem by holding a completely virtual
LVMH Innovation Award ceremony, shared on its website.
In 2007, LVMH launched the EllesVMH program under
A Dutch startup, Crobox, won this year’s award for its
the guidance of Chantal Gaemperle, LVMH’s Director
consumer behavior analysis solution. Crobox aims to
of Human Resources and Synergies, to promote gen-
identify which product features are most important to a
der equality at all levels of the Group’s hierarchy. In
given customer in order to customize the sales pitch to
2020, LVMH innovated by recording and broadcasting
match their specific expectations and increase customer
its first radio program on Shero, an in-house, commu-
nity-based digital platform for all Group employees
satisfaction. Crobox will work with the Group for one year
to provide specific solutions to the challenges faced by
that shares editorial content such as articles, videos
its Maisons.
22 • 23
LVMH 2020 . Commitments in 2020 —
OCTOBER 2020
well-being. Building on the first event’s success with
participants and LVMH’s determination to firmly establish
LVMH’S LA MAISON DES STARTUPS:
its long-term commitment to helping the community, the
CONTINUING TO REINVENT THE FUTURE OF LUXURY
initiative was renewed in 2020 and launched on March 6
at the Palace of Versailles, which opened its doors to
Launched in 2017, this startup accelerator at Station F
400 women supported by Secours Populaire, before
in Paris, the world’s largest startup incubator, is a core
continuing in Cognac and Lyon.
component of the Group’s innovation strategy. LVMH’s
La Maison des Startups embodies the Group’s desire to
—
actively and directly engage with the entrepreneurial
MARCH 2020
ecosystem to accelerate the links between luxury and
SUPPORT FOR THE PRODUCTION OF WOMAN,
technology. The lockdown measures applied in France
A DOCUMENTARY FILM
starting in March 2020 forced Station F to close its
doors, and LVMH’s La Maison des Startups had to
As a firm believer that women’s role in society is closely
adapt its organization. At the end of April, the incubator
linked to the recognition they receive in their professional
remotely welcomed its fourth intake, whose 25 members
lives, the LVMH Group is proud to help make their voices
introduced themselves to the Group in a special webinar.
heard by supporting the production of Woman, a docu-
In October, Demo Day was held in a fully digital broadcast
mentary co-directed by Anastasia Mikova and Yann
format, produced in a studio set up at LVMH’s head-
Arthus-Bertrand, which was released in theaters on
quarters in Paris. Open to all the Group’s Maisons, this
March 8, 2020. More than just a film, this international
event was a chance for incubated startups to pitch their
initiative takes viewers on a journey through 50 countries
solutions to LVMH’s teams based around the world, and
around the world to meet 2,000 women from all walks
for those already involved in collaborations with the
of life, shaped by their culture, faith and family history.
Maisons to showcase their solutions.
Despite their diverse backgrounds, a universal message
SOC IET Y &
T H E EN V IRON M EN T
Since its inception, the Group has made sustai-
nable 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.
emerges from the chorus of their voices. Several LVMH
employees took part in the documentary experience by
sharing their hopes, struggles and dreams on camera. In
a separate initiative, the Woman film crew also set up a
studio at LVMH’s headquarters in Paris, filming 80 women
from the Group who expressed their emotions using only
their gaze.
—
JULY 2020
LVMH ACCELERATES ITS
DIVERSITY & INCLUSION POLICY
—
MARCH 2020
Under the impetus of Chantal Gaemperle, LVMH’s Director
of Human Resources and Synergies, the Group reaffirmed
2ND EVENT UNDER THE UNE JOURNÉE POUR SOI
its commitment to promoting an inclusive culture that
(A DAY ALL YOUR OWN) INITIATIVE: SOLIDARITY
welcomes diversity at every level of its organization
IS THE ORDER OF THE DAY
through Voices of Inclusion, an unprecedented digital
event held during Pride Month 2020, which showcased
Determined to translate its social commitments into
LVMH’s Diversity & Inclusion policy from three different
concrete actions, LVMH launched Une Journée Pour Soi
angles. First, Group employees from all over the world
(A Day All Your Own) in 2019. Carried out in six French cities
shared personal experiences about belonging to or being
in partnership with French nonprofit Secours Populaire,
an ally for the LGBTI community in their workplace. Next,
this initiative gave more than 400 underprivileged
as part of a panel discussion, Francis Kurkdjian, perfumer
women a breath of fresh air, putting their day-to-day
worries aside and spending a day focused on their own
and co-founder of the Maison bearing his name, and
Rodney Williams, President and CEO of Belvedere Vodka,
explained how diversity and inclusion can be a source of
launched by LVMH Hotel Management and Arnaud
creative inspiration and commercial success. Lastly, the
Donckele, recipient of three Michelin stars and chef at the
event showcased the initiatives taken by LVMH and its
Cheval Blanc Saint-Tropez Hotel. This initiative provides
Maisons to actively support LGBTI causes. These included
hospital staff with meals for two, which in turn helps
the creation and development of the All LVMH Pride net-
support restaurant owners. At the invitation of Chantal
work, open to the entire LGBTI+ community and its allies.
Gaemperle, LVMH’s Executive Committee met to watch
All LVMH Pride USA celebrated its first anniversary
the broadcast of the initiative, at the same time as all
in 2020, and two other communities were launched
Group employees.
during the year (in Japan during the summer and in the
Asia-Pacific region in October).
—
JULY 2020
—
DECEMBER 2020
CLIMATE WEEK AND THE STORES AWARDS:
A CELEBRATION OF EMPLOYEE ENGAGEMENT
LVMH INCLUSION INDEX: A GROUP-WIDE
AND DIALOGUE
DIVERSITY & INCLUSION MONITORING SYSTEM
From December 8 to 11, 2020, five years after the Paris
Designed in 2018 by a team of five LVMH employees
Agreement was signed, the Group held LVMH Climate
(from TAG Heuer, LVMH Fashion Group, Le Bon Marché,
Week, a forum for dialogue with all of our employees to
Sephora and Louis Vuitton) at a DARE intrapreneurship
share the key priorities of the LIFE 360 program – which
event dedicated to gender equality, the purpose of the
will guide our environmental initiatives over the next 3,
Inclusion Index was to measure and boost the efforts
6 and 10 years – and to rally everyone around a call for
made by LVMH and its Maisons to achieve a better gen-
action: “Be The Change”. After a series of 12 talks featur-
der balance within the Group. Since then, the Inclusion
ing a wide array of guests including several Creative
Index has expanded its scope to include all initiatives
Directors, Group senior executives and Maison employees,
related to the LGBTI community. Some 150 initiatives relat-
LVMH Climate Week came to a close with the LIFE in
ing to gender equality or the LGBTI community have thus
Stores Awards, which honored the most commendable
been identified. Every year since it was launched, the
and innovative initiatives designed to improve the environ-
Inclusion Index has recognized particularly commendable
mental performance of the Group’s stores. These awards,
initiatives for diversity.
which are now overseen by an independent agency, were
—
DECEMBER 2020
L’ÉMISSION ENGAGÉE: LOOKING BACK
presented to seven winners.
—
DECEMBER 2020
ON A YEAR OF GOOD CAUSES FOR LVMH
NONA SOURCE: COMBINING CREATIVITY
AND THE CIRCULAR ECONOMY
LVMH organized L’Émission Engagée, a digital version of
its traditional Engaged Maisons Dinner. Despite the pub-
Developed as part of the LVMH DARE intrapreneurship
lic health context, the Group insisted on maintaining this
program, Nona Source is a virtual sales platform where
annual event, which since 2011 has brought together all
LVMH fashion houses can sell their unused fabrics and
its stakeholders – its Maisons, employees and nonprofit
leather. It is targeted at industry professionals, particularly
partners – to celebrate its social commitment and sup-
young designers who can find exceptional fabrics at very
port for the community. Throughout the evening, LVMH
competitive prices. Nona Source was developed with the
and its Maisons pledged their financial support for the
aim of fast-tracking circular approaches to creative reuse
fight against sickle cell anemia by donating to the
while guaranteeing exceptional quality standards. This
Robert-Debré Hospital (AP-HP) and the teams working
project resonates strongly with LVMH’s priorities and
with Prof. Baruchel and Dr. Benkerrou to help care for
commitments, and underscores the Group’s creative
children affected by this hereditary genetic disease. Each
identity, our commitment to young creative talent and
year, other worthy causes are also featured, such as the
the new environmental objectives of LVMH’s LIFE 360
À Table Les Soignants initiative – a token of gratitude for
all the hospital staff mobilized during the Covid-19 crisis –
program.
24 • 25
LVMH 2020 . Commitments in 2020 T R A DIT ION & EX PERT ISE
LVMH and its Maisons are the heirs and custo-
dians of a long tradition of artisanal and creative
skills, some of which date back centuries. They
scrupulously safeguard and develop this cultural
heritage. Perpetuating these professions 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.
—
2019-2020
L’INSTITUT DES VOCATIONS POUR L’EMPLOI:
A SPRINGBOARD TOWARD THE FUTURE
Founded by the LVMH Group in 2019, L’Institut des
Vocations pour l’Emploi (LIVE) is committed to giving a
second chance to people over the age of 25 who have been
diploma. The vast majority of apprentices in the grad-
uating class have joined LVMH or its outside partners.
This initiative is a source of great pride for the Group,
for which passing on its Maisons’ expertise is a key
priority.
A RT & C U LT U R E
Art has always inspired the creation of exceptional
products, and at LVMH highly skilled crafts-
manship and rare professions are a precious cultural
resource. It is therefore only natural that the
Group should take action to foster art and culture.
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 exhibitions and
supporting contemporary artists.
marginalized on the job market. In 2021, LIVE will have
—
three centers – located in Clichy-sous-Bois, Valence and
SEPTEMBER 2020
Roubaix – which will each welcome more than 100 stu-
CINDY SHERMAN RETROSPECTIVE
dents per year. They will be given refresher courses on
AT THE FONDATION LOUIS VUITTON
key skills such as written and verbal communication, math
and general knowledge, as well as training in personal
The Cindy Sherman at the Fondation exhibition, originally
development and career planning.
scheduled for the spring, was able to open its doors to
—
OCTOBER 2020
the public in the fall. This exceptional retrospective fea-
tured more than 170 works by Cindy Sherman. Spanning
her entire career as one of the greatest photographers of
LVMH’S INSTITUT DES MÉTIERS D’EXCELLENCE
our time, it focused in particular on works from the past
WELCOMES ITS 7TH CLASS VIRTUALLY
decade, some of which were exhibited for the first time
ever. Visitors flocked to admire this universally acclaimed
Since it was founded in 2014, LVMH’s Institut des Métiers
artist’s insightful, sensitive exploration of the notions of
d’Excellence (IME) has been constantly growing, driven
identity and image.
by the Group’s commitment to training younger gen-
erations through apprenticeships. Despite the public
—
health crisis, LVMH made a point of maintaining its
OCTOBER 2020
induction ceremony, reflecting the Group’s steady
LVMH: LOYAL PATRON OF THE NUIT BLANCHE
focus, continued support for apprentices and their
NIGHT-TIME ARTS FESTIVAL FOR NEARLY 15 YEARS
instructors, and resoluteness in maintaining its com-
mitments. The ceremony, which was held online, was
Through this event, LVMH supports the French and
a chance to honor the apprentices who, in such
international arts scene, giving center stage to contem-
unprecedented circumstances, were able to complete
porary artists at an event open to all in the heart of Paris.
their training and obtain their degrees, and to wel-
For the 2020 festival, LVMH once again provided
come the latest class of talented individuals who are
support alongside the City of Paris. Participants could
starting their studies this fall at LVMH’s IME. 97% of
explore a number of Paris’ most iconic cultural institu-
apprentices in France and Switzerland graduated, and
82% earned an LVMH Brevet d’Excellence vocational
tions and monuments, in an unprecedented dialogue
between nature and the city.
Production of masks at Dior workshops in Redon.
26 • 27
LVMH 2020 . Commitments in 2020 #LVMHJOINSFORCES
WITH THE ENTIRE WORLD IN THE GRIP OF THE CORONAVIRUS PANDEMIC,
THE LVMH GROUP TOOK ACTION IN AN UNPRECEDENTED EFFORT TO SUPPORT
THE COMMUNITY AND FIGHT THE SPREAD OF THE VIRUS.
Around the world - and
particularly in France,
where the Group and many
of its Maisons originated -
LVMH and its employees
were wholeheartedly committed
to the cause. Thanks to our
devoted teams, as soon as the
first lockdown was announced,
initiatives were immediately
set in motion to support the
community. These initiatives,
taken under the exceptional
circumstances of the public
health crisis, illustrate only
some of our collective efforts.
They reflect an exemplary agility
that enabled us to produce hand
sanitizer, masks and gowns
for health care facilities, local
government offices, nonprofits
and key service providers, as well
as to offer meals to medical staff,
and more.
producing non-surgical masks
approved by the authorities. More
than 300 leather goods artisans
participated at the Maison’s 16
workshops in France. From Marsaz
(in the Drôme department of
southeastern France) to Ducey (in
northwestern La Manche), a total
of 500,000 masks were produced.
In parallel, Louis Vuitton’s Paris
workshop produced 11,000 medical
gowns for AP-HP hospital staff and
the French health authorities. They
were quickly joined by Givenchy’s
French workshops. Dior reopened
its Redon workshop in Brittany,
which usually specializes in manu-
facturing Baby Dior clothing. The
Maison’s tailors and seamstresses
produced non-surgical cloth masks
M A N U FAC T U R ING
M A SK S A N D GOW NS
Faced with shortages of medical
for the general public, a vital aid in
supplies in France and throughout
slowing the spread of the virus.
the world, the LVMH Group’s
Kenzo and Celine supplied fabric
employees rapidly stepped for-
and mobilized their resources to
ward to help fight the spread of
provide gowns to medical staff at
Covid-19. On a voluntary basis, the
Paris hospitals. In Spain, Loewe got
Group’s Maisons channeled this
involved by producing non-surgical
community spirit into tangible
masks at its Getafe workshop near
results.
Very quickly, all of Louis Vuitton’s
Madrid. The Maison also donated
100,000 masks to the Spanish
workshops in France set to work
Red Cross.
M A IN TA IN ING
BUSIN ES S
OPER AT IONS
SU PPORT ING
H EA LT H CA R E
FAC ILIT IES
PRODUC ING
H A N D SA N IT IZ ER
As soon as the lockdown started,
Lastly, some of our Maisons had to
Starting in early March, LVMH
LVMH launched large-scale initia-
keep operating on an exclusively in-
provided financial and logistical
tives to help the French health
person basis throughout the entire
support to the French health
authorities. The Group mobilized
lockdown period.
authorities by organizing the
the production units of its Perfumes
This was the case for La Grande
import of more than 40 million
& Cosmetics Maisons to produce
Épicerie de Paris due to the essential
surgical and FFP2 masks, and by
hand sanitizer when this product
nature of its business. To continue
acquiring ventilators and blood
was in short supply in France. Very
supplying its customers with food
tests. Everywhere they operate
quickly, Parfums Christian Dior,
products and to maintain the orders
around the world, the Group’s
Guerlain, Parfums Givenchy and
placed with its suppliers, the
Maisons launched regional initia-
Bvlgari in Italy reoriented their ope-
employees of La Grande Épicerie
tives to help local communities
rations to produce several metric
showed exemplary dedication.
and health care facilities cope
tons of hand sanitizer, which was
For the LVMH Group’s Wines and
with the virus. LVMH also showed
donated to health care facilities,
Spirits business group – and Moët
its direct support in combating
local government offices, non
& Chandon in particular – work
Covid-19 by making a number of
profits such as Secours Populaire,
had to continue both at vineyards
donations, totaling €35 million,
and key service providers (inclu-
and at production sites. This was
in particular to the Fondation
ding the Paris police headquarters,
made possible in large part thanks
Hôpitaux de Paris-Hôpitaux de
Air France and major retailers).
to the commitment and profes-
France, the Chinese Red Cross
sionalism of all its employees.
and the Institut Pasteur in Lille to
launch a clinical trial to verify the
effectiveness of a molecule tested
in vitro against Covid-19.
28 • 29
LVMH 2020 . Commitments in 2020 Production of gowns at
Louis Vuitton workshops in Asnières.
S T A Y I N G T H E C O U R S E
CONFRONTED BY AN UNPRECEDENTED GLOBAL CRISIS,
LVMH RAPIDLY TOOK ACTION TO PROTECT ITS EMPLOYEES, SECURE
ITS MARKETS AND DO ITS PART FOR THE COMMUNITY.
THE DETERMINATION AND AGILITY OF ALL THOSE INVOLVED
ENABLED THE GROUP TO STEER THROUGH THIS TRYING PERIOD
WITH A SINGLE OBJECTIVE: TO SUPPORT OUR ACTIVITIES
AND LAY THE GROUNDWORK FOR RECOVERY.
LVMH’s strong business model
management. LVMH’s strong values – creativity and
innovation, the pursuit of excellence and entrepreneurial
2020 will go down in history as the year of Covid-19, a
spirit – and highly committed teams were major assets
global pandemic that engulfed the planet in uncer-
during the crisis.
tainty, and changed the way we live and work. In this
At each of the Group’s Maisons, innovative initiatives
complex context, LVMH has steadfastly focused on
sprang up to help improve workflow and customer rela-
protecting the health, well-being and safety of its
tions. For employees unable to work remotely, this time
employees around the world. In regions subject to
away was used to support business activity and prepare
lockdowns, certain employees worked remotely for the
for recovery, including videoconferences with customers
first time, some were no longer able to come to their
to stay connected, online product training and virtual
workplaces, while still others had to homeschool their
team meetings. These local initiatives, which reflected
children or found themselves in isolation. These were all
the commitment of our employees on the ground and
unprecedented situations that LVMH and its employees
their ability to innovate and bounce back from any situ-
faced head-on in order to find solutions, together. A
ation, often led to more widely shared best practices.
Group and Maison task force was formed to address
these health and safety issues. Mindful of the impor-
tance of being particularly attentive to its employees
during this challenging period, LVMH implemented a
Diverse talent, a key
to LVMH’s performance
support hotline and swiftly launched its worldwide
Pulse Survey (see page 33). 2020 also saw a huge
LVMH owes its performance to its in-house talent. This
core belief, which forms the cornerstone of the Group’s
wave of community spirit within the Group and among
human resources policy, was highlighted as never before
employees, who fought the virus by producing hand
by the crisis. More than ever, our people – whatever their
sanitizer, protective masks and gowns, which were
specialization or management level – make all the differ-
distributed free of charge to public entities.
ence. That’s why, throughout the year, LVMH continued
In many countries, curfews, lockdowns and administra-
to focus on the development and diversity of its talent
tive closures were implemented. The Group was able to
as drivers of its dynamism, regardless of origin, gender,
adapt to this new reality by accelerating its digitaliza-
age, disability or sexual orientation. During this period,
tion initiatives, pooling its resources to create inter-
which saw tensions become exacerbated throughout the
Maison communication and training platforms, and
doing its utmost to help employees continue working
world, the Group stepped up its diversity and inclusion
policy. For many years, LVMH has worked to promote an
under optimal conditions. Wherever possible, remote
inclusive culture, and it accelerated these longstanding
working was facilitated through the use of office equip-
efforts during the health crisis. Its Unconscious Bias
ment, technical infrastructure, and close contact with
training program was adapted so that all its employees
30 • 31
LVMH 2020 . Talent could continue to access it. Its Inclusion Index was also
helping them shape their career plans, and by offering
expanded with the addition of initiatives focused on
internships, apprenticeships, as well as fixed-term and
gender equality and LGBTI+ people. A major milestone,
permanent contracts. More than 200 initiatives were
LVMH held its first pride event: Voices of Inclusion. The
held around the world, the vast majority of which were
Group encouraged all its employees to “Be an ally” by
offered online: conferences with senior executives,
taking part in this digital event, broadcast from its head-
discussion panels, recruitment sessions, job presenta-
quarters in Paris. Through Voices of Inclusion, LVMH
tions, brainstorming on company case studies, coaching,
reaffirmed its conviction that the rich diversity of talent
virtual tours of boutiques, and more. For example,
within the Group is an invaluable source of creativity and
to launch its recruitment campaign for interns and
innovation. As such, it was essential for the entire organ-
apprentices in France for 2021, LVMH assembled more
ization, at every level, to come together to promote
than 20 Maisons for virtual “Start Your Journey with
this multifaceted diversity and ensure that everyone is
LVMH” events, welcoming over 4,000 students. The
included. Everyone must be free to be themselves,
Maisons based in the United States participated in the
knowing that they are part of a Group that lets them
National Black MBA Career Fair, during which many of
fully express their potential at every stage of their career.
the Group’s senior executives shared insights about
Echoing the Black Lives Matter movement, LVMH and its
their careers with more than 2,000 young people at
Maisons took a stand for greater social justice and
each virtual session. Longstanding partnerships were
strongly condemned all forms of discrimination, by lead-
renewed and strengthened with schools and universities
ing and supporting a number of initiatives. In particular,
such as ESSEC, HEC Paris, École Polytechnique and
Sephora USA has undertaken to devote 15% of the shelf
CentraleSupélec in France, Central Saint Martins in the
space in stores to brands founded by people of color.
United Kingdom, Bocconi University in Italy and Fudan
This section would not be complete without highlighting
University in China.
LVMH’s commitment to promoting employment for
The Institut des Métiers d’Excellence (IME) confirmed
people with disabilities. This year, the Group joined the
its relevance and its ability to constantly reinvent
ILO Global Business and Disability Network. Faced with
itself. Since it was launched in 2014, the core mission
the common misconception that disability and luxury
of LVMH’s IME has centered on the preservation and
are incompatible, LVMH shows on a daily basis how false
transmission of the unique expertise that underpins
this view is. Everywhere it operates, the Group strives to
the success of the Group’s Maisons. Its unique offer-
ensure that all talent, regardless of disability, is treated
ing of work-linked training programs in craft trades,
equally in hiring, recognition and promotion.
design and sales is targeted at younger generations
Renewed support
for our talented people
and people undergoing retraining, and welcomes
talent from all backgrounds. In 2020, IME continued
to grow, with more than 900 apprentices trained
since its launch in France, Switzerland, Italy and
In a radically changing world, LVMH has focused on
Spain, thanks to a solid network of schools, universi-
making sure that employees are able adapt to techno-
ties and Maisons. The IME and its partners have
logical and market developments, as well as to new
worked hard to ensure learning continuity and to
working and management methods. The Group main-
reinvent its highlights in a digital format. This agility
tained its commitment to developing the skills, exper-
made it possible to maintain a high pass rate (97%).
tise and knowledge of its employees to ensure that
The vast majority of recent graduates have joined the
they are prepared to manage demanding contexts
Group or its outside partners.
which change rapidly. Human Resources teams worked
The crisis has demonstrated the solidity of LVMH’s
particularly hard this year to respond to Group employ-
business model and its human resources policy. This
ees’ wishes for greater autonomy, and for compassion-
year, the Group has protected its unique ecosystem – a
ate and inspiring leadership. Current and future talent
source of exceptional cultural, professional and sectoral
share the same desire to integrate and lead teams
diversity – where its talent can thrive. Confronted by
where attentiveness, engagement and collaboration
this complex situation, the Group’s culture and collec-
play a key role.
tive strength have proven to be invaluable assets,
During this unprecedented year, LVMH also made a
point of supporting younger generations. While most
giving rise to an incredible wave of community spirit.
It is this spirit of community – this driving energy –
schools and universities were closed and had to revise
that has kept us on course in this storm and prepared
their teaching methods by providing remote learning,
us for a meaningful future for our Group and for our
the Group continued to offer support to students by
employees.
Indicators
a s o f De ce m be r 3 1, 2 02 0
33
150,479
Median age
employees worldwide
71%
women
€91m
invested in train ing
EMPLOYEES BY REGION
(in %)
EMPLOYEES BY BUSINESS GROUP
(in %)
Other
markets
9%
Asia
(excl. Japan )
23%
Japan
5%
France
22%
Fashion &
Leather Goods
35%
Europe
(excl. France)
25%
United States
16%
Wines & Spirits
5%
Other
activities
6%
Perfumes &
Cosmetics
19%
Watches &
Jewelr y
6%
Selective
Retailing
29%
WORKFORCE BY AGE(1)
(in %)
BREAKDOWN OF MEN/WOMEN
BY BUSINESS GROUP(1)
55+
8%
45 -54
16%
35 -44
28%
(1) Total permanent headcount.
Under 25
9%
25- 34
40%
Wines &
Spirits
Fashion &
Leather Goods
Perfu mes &
Cos metics
Watches &
Jewelr y
Selective
Retailing
Other
activities
33%
41%
18%
17%
62%
62%
38%
67%
82%
59%
83%
38%
LVMH Global Pulse Survey: listening to our employees
LVMH is constantly concerned about the
Over 78,000 employees responded to the
proud to belong to the Group, and work
well-being of all our employees worldwide.
survey, and we collected more than
for their Maison. Their proposals for future
This year, especially, we had to be extremely
180,000 answers, with very enthusiastic
priorities have inspired an array of strate-
mindful of it. For that reason, in July the
feedback. Most of our employees said
gic initiatives which have since been
Group launched the first ever LVMH Global
Pulse Survey. Our aim was to “take our
they were motivated and confident for the
future. A significant 89% commended the
implemented at the Maisons; and the
Group will draw on them in 2021 to launch
employees’ pulse”. We wanted to know
way the Group and its Maisons responded
Next Frontier, an ambitious scheme to
their mindsets, opinions on how we handled
to the Covid-19 crisis, and 93% and 91%
change ways of working, cooperating and
the crisis, and visions for the future.
respectively said they were extremely
leading within LVMH.
32 • 33
LVMH 2020 . Talent Parfums Christian Dior, May roses.
T H E E N V I R O N M E N T :
A T T H E H E A R T
O F T H E G R O U P ’ S C R E A T I V I T Y
A N D I N N O VA T I O N
IN 2020, THE GROUP’S ENVIRONMENTAL RESPONSIBILITY POLICY
TOOK CENTER STAGE AS A FRESH SOURCE OF INSPIRATION
AND INNOVATION FOR ALL EMPLOYEES. IT HAS HELPED OPTIMIZE
THE ENVIRONMENTAL FOOTPRINT OF THE SITES, STORES
AND PRODUCTS OF EACH OF THE GROUP’S MAISONS, WHILE PROVING
THAT SUSTAINABILITY AND DESIRABILITY CAN GO HAND IN HAND.
The Group’s program of environmental commitments,
LVMH accelerated its circular economy program. Life
which set targets in 2016 under the LVMH Initiatives for
Cycle Assessments (LCAs) helped identify top environ-
the Environment (LIFE) program, was completed in
mental priorities for each product category and guide
2020. Its track record shows a very substantial improve-
sustainable design choices. As an example, Louis Vuitton
ment in the carbon footprint of sites, stores and packag-
set itself the target of ensuring that 100% of its products
ing, and greater supply chain accountability. These
are sustainably designed by 2025, laying down its com-
results, in conjunction with more than 30 years of experi-
mitment to various forms of circularity, including upcycling.
ence in driving environmental change, set the stage for
Patou, Loewe, Kenzo and Dior are adopting sustainable
LIFE 2020’s successor program, LIFE 360, under which
design practices and promoting the use of responsible
all the Maisons aim to spur further progress. LIFE 360 is
materials in their collections, from denim to leather.
the Group’s new environmental compass, guiding it into
Material innovation is another powerful way to improve
the future by defining action plans to be implemented by
the environmental footprint of our products and packaging.
2023, 2026 and 2030. This new program was jointly
Maison/0 – the LVMH and Central Saint Martins incubator
developed by the Maisons and involved dialogue with a
set up in 2017 to drive the emergence of breakthrough
number of sources: the LVMH Science Committee;
solutions – explored new avenues for regenerative design
several discussion sessions with young employees and
in 2020, including jewelry lines made from biomaterials
students; the Future of Luxury Commission (launched in
derived from yeast or lipstick made exclusively from recy-
July 2020, whose members come from outside the Group
cled algae. In 2020, Ruinart transformed its packaging
and represent a range of disciplines); and LVMH Climate
with the launch of a completely recyclable “second skin”
Week, which was held from December 8 to 11, 2020,
case. Building on these achievements, LIFE 360 also aims
offering the Group’s 160,000 employees a week of dia-
to explore opportunities for circularity between Maisons,
logue and talks with experts focused on climate and bio-
such as Nona Source, which lets Maisons exchange their
diversity. LIFE 360 charts the course for the next 10 years,
unused fabric and material with one another.
championing a new vision of luxury, one in which nature
and creativity are inextricably intertwined, with products
Taking action to restore biodiversity
that epitomize the Group’s environmental ambition.
Circularity, creativity and eternity
Nature is the ultimate source of LVMH’s products, from
inspiration to composition. At the end of 2020, the
Group used geolocation databases to measure its pre-
Part of what makes LVMH and its Maisons’ products so
cise biodiversity impact so that we could target our
desirable is their eminent sustainability: products that are
action plans as effectively as possible, particularly
designed to last and preserve natural resources. In 2020,
through regenerative agriculture, which focuses on
34 • 35
LVMH 2020 . Environment regenerating healthy topsoil and restoring ecosystem
five years since the fund was created, a total of
function. This approach is a core component of the Living
23 projects have been launched, with €3.8 million
Soils training program announced by the Wines and
Spirits Maisons at the Vinexpo trade fair in February
2020. The Maisons also stepped up their efforts to limit
synthetic inputs: since the end of 2020, all of their vine-
yards in Champagne are herbicide-free. Since 2019,
raised in internal carbon fees, helping avoid 892 met-
ric tons of CO2 emissions. In 2020, the Group refined
the method used to calculate our carbon footprint,
which amounted to 4.8 million metric tons of CO2
equivalent, 94% of which were Scope 3 emissions.
LVMH has been a partner of UNESCO’s Man and the
This will serve as the baseline for LIFE 360’s new sci-
Biosphere intergovernmental scientific program aimed
ence-based carbon trajectory in line with the Paris
at taking action for global biodiversity conservation. The
Agreement, and its new change drivers: 100% renew-
Group’s first initiative under this partnership is being led
able or low-carbon energy on-site and in-store by
by Guerlain: a five-year program to train and support
2026, a green e-commerce program and a carbon
women beekeepers in UNESCO-designated biosphere
innovation policy focused on Scope 3.
reserves with the aim of promoting and protecting bees
and the essential role they play. With respect to animal
biodiversity, the Group continued its research into improv-
ing breeding practices by establishing standards where
Expanding our
traceability policies
they did not yet exist and by carrying out research pro-
Demand is growing for better information about product
jects, such as the cage-free rearing of Orylag rabbits
traceability: customers want to know where products
in France, conducted under the aegis of the Group’s
come from and the environmental aspects of how they
Science Committee as part of its new Animal-Based
are produced. Meeting this demand requires a thorough
Raw Materials Sourcing Charter.
Taking action for the climate
understanding of the chains of responsibility within a
given supply chain, which certain types of certification
can provide. The LIFE 2020 target of ensuring that 70%
of supply chains are certified as meeting the highest
Our LIFE 2020 target of reducing energy-related C0₂
standards was achieved for most materials by the end
emissions by 25% was met in 2019. This was achieved
of 2020, although progress still needs to be made,
in part thanks to the widespread adoption of in-store
particularly for cotton. Traceability objectives once again
LED lighting, the primary focus of the Group’s Scope 1
play a key role in LIFE 360, together with our Respon-
and 2 targets. A second major driver was the increased
sible Purchasing policy, and will benefit from new tech-
use of renewable energy, both at production sites and
nological advances, as seen for example in the Aura
in stores, with the share of renewables in the Group’s
project, which offers downstream traceability for the
energy mix going from 1% in 2013 to more than 39%
luxury industry, while continuing to work on upstream
by the end of 2020. Sephora took an active role in this
traceability. Access to information on the origin and
transformation: its San Francisco headquarters, distri-
traceability of our products is another issue that the
bution centers and all its stores in the United States
Maisons are tackling head on. Following the lead of
now run on 100% green electricity. Carbon and envi-
Guerlain’s Bee Respect platform, which posts all the
ronmental performance was pivotal to the design of
information related to the life cycle of its products
new production sites: following the inauguration of La
online, in 2020 Fendi decided to post the full list of its
Manufacture (Celine’s new manufacturing facility in
suppliers and the results of its audit program on its
the heart of Chianti, Italy) and Louis Vuitton’s new
website. The Group is working to provide product-level
leather goods workshop in Beaulieu-sur-Layon
(BREEAM®-certified in 2019), Fendi laid the corner-
stone for Fendi Factory in November 2020. The newly
environmental information, in particular by taking part
in environmental labeling initiatives, both in France and
in Europe, and is providing support for doctoral
converted site, a study in glass nestled in the rolling
research to test the CARE (Comprehensive Accounting
Tuscan countryside, is aiming for LEED Platinum certi-
in Respect of Ecology) model at one of its vineyards, as
fication. Innovation is a powerful driver of the Group’s
part of its backing for the Comptabilité Écologique
carbon trajectory: the program focused on sharing
(Sustainable Accounting) Chair launched by Fondation
low-carbon technology with Bertrand Piccard’s Solar
Impulse Foundation made it possible to select new
energy solutions that were unveiled during LVMH
Climate Week in December 2020, in addition to those
developed thanks to the LVMH Carbon Fund. In the
AgroParisTech.
Dynamics of the LIFE program
Results of LIFE 2020
Baseline year: 2013
Products and packaging
Sourcing
Climate
Sites
Target: Achieve a 10% improvement
in the Environmental Performance
Index (EPI) of packaging
for Wines & Spirits and
Perfumes & Cosmetics businesses.
Perfumes & Cosmetics
+10% 2020
+10% 2020 target
Hennessy
+33% 2020
+10% 2020 target
Target: Apply the highest
standards across 70%
of supply chains.
Target: Cut Scope 1 and 2
CO2 emissions by 25%
relative to 2013.
Target: Achieve at least a 10%
improvement in key indicators
of sites’ environmental efficiency.
LWG certification of tanneries
(leather)
74% 2020
70% 2020 target
Sustainable cotton certification
(BCI, GOTS, etc.)
51% 2020
70% 2020 target
Sustainable
winegrowing certification
(LVMH’s vineyards in France)
70% 2020 target
100% 2020
RJC COP
diamond certification
99% 2020
70% 2020 target
CO2 emissions
-37% 2020
-25% 2020 target
Use of green energy
39% 2020
30% 2020 target
Store energy consumption
-31% 2020
-30% 2020 target
Process water consumption
at production sites,
logistics facilities and
headquarters
-12% 2020
-10% 2020 target
Waste production
at production sites,
logistics facilities
and headquarters
-4% 2020
-10% 2020 target
The new LIF E 360 program
Targets for 202 3, 2026 and 203 0
Creative circularity
• 100% of new products covered
by a sustainable design approach (2030).
• Zero fossil-based virgin plastic in packaging
(2023, 2026, 2030).
Transparency
100% of our strategic supply chains
covered by a dedicated traceability
system (2030).
Nature-positive
products:
LVMH’s commitment
to the environment
Climate
• Commitment to the 1.5°C trajectory (SBTi).
• 100% renewable or low-carbon energy
on-site and in-store (2026).
Biodiversity
• 100% of strategic raw materials certified
to standards guaranteeing the preservation
of ecosystems (2026).
• 5 million hectares of flora and fauna habitat
restored and/or preserved (2030).
36 • 37
LVMH 2020 . Environment Architectural detail of the Fondation Louis Vuitton building.
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.
Culture, heritage and
contemporary creative arts
Due to the Covid-19 pandemic, the final round of the
7th annual LVMH Prize for Young Fashion Designers –
scheduled to take place on June 5, 2020 at the
Reflecting its commitment to cultural heritage, in 2020
Fondation Louis Vuitton – was canceled. The LVMH
LVMH continued to back the effort to save Notre-Dame
Prize’s €300,000 award was divided equally among the
de Paris Cathedral, whose restoration will take several
eight finalists who had been selected by the Prize’s
more years. Just one day after the terrible fire that
Committee of Experts for 2020. In addition, to support
ravaged the monument in the spring of 2019, LVMH, led
young designers who have been particularly hard hit by
by its Chairman, Bernard Arnault, made a €100 million
the public health crisis, LVMH set up an aid fund for
donation (along with an additional €100 million from his
young fashion designers with the prize money from the
family group) to ensure that Notre-Dame’s long resto-
2020 Karl Lagerfeld Prize. The fund will support all the
ration process is followed through to completion.
designers and brands that have won the LVMH Prize for
To support the arts, LVMH first wished to start off the
Young Fashion Designers and the Karl Lagerfeld Prize.
year by presenting Tennessee Williams’ The Glass Menag-
Since it was first awarded in 2014, the LVMH Prize has
erie at the Odéon-Théâtre de l’Europe, in a production
received more than 6,500 applications from designers
directed by Ivo van Hove. The play’s run was unfortu-
from all continents. The previous winners are Thomas
nately cut short at the beginning of March after only a
Tait (from Canada, 2014), Marta Marques and Paulo
few performances, but it should return to the Odéon in
Almeida (Portugal, 2015), Grace Wales Bonner (United
the spring of 2021, with continued support from LVMH.
Kingdom, 2016), Marine Serre (France, 2017), Masayuki Ino
LVMH has been a loyal patron of the Nuit Blanche
(Japan, 2018) and Thebe Magugu (South Africa, 2019).
night-time arts festival for nearly fifteen years, and
once again in the fall of 2020 provided support along-
Arts education initiatives
side the City of Paris to the French and international
arts scene, giving center stage to contemporary artists
Once again this year, LVMH’s patronage of programs
at an event open to all in the heart of Paris. On the
for young people focused on music. It continued its
evening of Saturday, October 5, participants could
support for Orchestre à l’École, a nonprofit that enables
explore a number of Paris’ most iconic cultural institu-
tions and monuments, in an unprecedented dialogue
hundreds of children all over France to learn a musical
instrument as part of a special educational program,
between nature and the city. LVMH also continued its
and for the Opéra Comique, in Paris, to facilitate access
support for the Giacometti Institute in Paris, helping it
to its shows for younger age groups. LVMH also once
develop its scientific and cultural program.
again loaned out the Stradivariuses in its collection.
38 • 39
LVMH 2020 . Corporate philanthropy Backing medical research
and certain social causes
in their initiatives for children; the Fondation Claude
Pompidou, which provides support in France for seniors
and people with disabilities; Association Fraternité
Lastly, the Group supported numerous institutions
Universelle, which works in Haiti to improve access to
well known for their work with children, the elderly
health care and education alongside actions in favor
and people with disabilities, and for their efforts to
of agricultural development, especially in the Central
combat major causes of suffering and exclusion. In
Plateau; and the Curie Institute in its research and
particular, LVMH has provided major support to the
work to fight childhood cancer. The Group is also a
Fondation des Hôpitaux de Paris-Hôpitaux de France
longstanding supporter of a number of scientific teams
and the Association Le Pont Neuf in France; Save the
and foundations engaged in cutting-edge public
Children Japan; the Robin Hood Foundation in New York
health research.
Restoration of Notre-Dame de Paris Cathedral. Site safety and consolidation phase.
Since it was opened in 2014, the Fondation Louis Vuitton
has consolidated its position as a leading institution
on the international ar ts scene and has been a resounding
success with a French and international audience.
It has already welcomed more than 6 million visitors
from all over the world.
The first major success of 2020 was that of the Charlotte Perriand: Inventing a New
World exhibition, which closed to the public on February 24 after welcoming a total of
476,000 visitors. On the occasion of the twentieth anniversary of the artist’s passing,
the exhibition paid tribute to Charlotte Perriand (1903-1999) and familiarized its audience
with the key contributions she made to the history of architecture and design and to
20th century modernity.
Next, the Cindy Sherman at the Fondation exhibition, originally scheduled for the spring,
was postponed before finally opening its doors to the public on September 23. This excep-
tional retrospective, featuring more than 170 works by the artist, spanned Cindy Sherman’s
entire career as one of the greatest photographers of our time, with a special focus on
works from the past decade, some of which were exhibited for the first time ever. As soon
as the Fondation reopened, visitors flocked to admire this universally acclaimed artist’s
insightful, sensitive exploration of the notions of identity and image until the public health
crisis worsened and the Fondation closed for a second time.
The Icons of Modern Art: The Morozov Collection exhibition, originally scheduled to open
in fall 2020, will be held from May 12 to October 10, 2021. This highly anticipated exhibition
will feature masterpieces from the collection of French and Russian modern art assembled
by the Muscovite brothers Mikhail Abramovich Morozov (1870-1903) and Ivan Abramovich
Morozov (1871-1921). Presented for the first time outside Russia, The Morozov Collection will
echo the Shchukin exhibition, which set a record for the Fondation in 2017 with 1.2 million
visitors. This exhibition will mark a new era in the partnership between the Fondation Louis
Vuitton and major Russian museums.
A final highlight was the Fondation Louis Vuitton’s continuation of its international
Hors-Les-Murs (“Beyond the Walls”) program this year, which included the Anicka Yi and
Doug Aitken exhibitions at its Espace Louis Vuitton locations in Munich and Tokyo.
Cindy Sherman, Untitled #584, 2018, Fondation Louis Vuitton.
40 • 41
LVMH 2020 . Corporate philanthropy Loro Piana, The Gift of Kings® wool, New Zealand.
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.
Codes of ethics and their application
Fair and responsible relations
with our partners
LVMH’s commitments to our employees and stake-
holders are reflected in the Group’s longstanding
Supporting our partners is a key strategic priority for
support for benchmark initiatives such as the United
LVMH, as we aim to build long-term relationships under-
Nations Global Compact, and in the adoption of inter-
pinned by our shared quest for excellence and the
nal charters and codes of conduct which serve as
ambition to establish a set of common ethical principles,
guidelines for all of our Maisons. These include the
guidelines and practices. The Group is developing a
LVMH Code of Conduct, the Supplier Code of Conduct,
comprehensive policy with the aim of ensuring that our
the Environmental Charter, the Charter on Working
partners and suppliers adopt best environmental, social
Relations with Fashion Models and Their Well-Being,
and societal practices, while enhancing awareness and
the Recruitment Code of Conduct and, more recently,
providing information about issues specific to their own
the Animal-Based Raw Materials Sourcing Charter. The
activities. LVMH and its Maisons take a collaborative
Group has a dedicated governance structure that
approach, offering support through audits and, where
ensures its values and codes of ethics are applied at
necessary, action plans. Over 1,300 audits were con-
the operating level. This structure includes the Ethics &
ducted in 2020. Despite the exceptional public health
Sustainable Development Committee, which operates
situation that began in early 2020, LVMH was able to
within the Board of Directors and primarily comprises
maintain a significant level of on-site supplier audits. The
Independent Directors. The Group’s Executive Manage-
Group’s responsible sourcing policy also includes
ment coordinates the initiatives of LVMH’s Ethics &
supplier support and training. For example, LVMH is a
Compliance, Audit, Internal Control, Operations, Procure-
signatory of the Utthan pact, an industry initiative that
ment, Environment, Social Development, and Financial
brings together several major luxury brands that contract
Communications Departments. The Group puts these
out embroidery work. The initiative’s aim is to build up
commitments and values into practice across all its
and elevate recognition of luxury embroidery expertise
business lines, paying close attention to areas such as
in Mumbai, where a significant number of our Maisons’
promoting employee inclusion and well-being; devel-
partner embroiders are based. The initiative also includes
oping and passing on expertise and key skills; protect-
an on-site training program for embroiderers. In parallel,
ing personal data; reducing the Group’s impact on
the Group also ensures that its own buyers receive train-
ecosystems and natural resources; and establishing
ing on issues related to responsible purchasing.
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, while pro-
moting and ensuring sustainable supply chains.
Further information can be found in the “Environment”
section and in the 2020 Universal Registration Document.
42 • 43
LVMH 2020 . 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
Château d’Yquem
LVMH
Wi nes &
Spir its
2020
Hennessy
A VA L U E - E N H A N C I N G
2020 REVENUE BY REGION
(in %)
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
Other
markets
11%
Asia
(excl. Jap an)
19%
Jap an
6%
France
5%
Europe
(excl. France)
18%
United States
41%
LVMH owes its global leadership in premium wines and spirits to a unique
group of exceptional Maisons based in Champagne, Bordeaux, Burgundy 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
In the current context, Moët Hennessy continues to pursue a value-enhancing
strategy focused on the highest-quality products. 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 and 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 independent grape suppliers
comply with these certifications. Significant work is also being done in the area
of packaging. The Maisons are devoting equal effort to actively developing
their production capacities, as seen in the responsible, innovative and efficient
Pont Neuf bottling and logistics facility inaugurated by Hennessy in 2017,
which reflects the Maison’s long-term vision.
48 • 49
Reven ue
€4 , 75 5 m
–14% (1)
Champagne
s ales volumes
52 .4 m
b ot t l e s
Prof it f rom recur ring
op erations
€1 , 3 8 8 m
–20%
Cog nac
s ales volumes
94 .6 m
b ot t l e s
Operating
investments
€3 20m
–2%
(1) Organic change 2020/2019.
Major s t r ateg ic
pr ior it ies
Pursue value-enhancing strategy.
Develop production capacities
to ensure sustainable growth.
Further improve efficiency
of distribution in key markets.
Accelerate efforts to protect
the environment, in particular
in supply chains and packaging.
LVMH 2020 . Wines & Spirits O U R M A I S O N S T A K E A C T I O N
Moët Hennessy’s
Living Soils program
Moët Hennessy unveiled its sustain-
Hennessy
sets s ail across
the Atlantic
Veuve Clicquot
stands with women
entrepreneurs
A sustainable second
skin for Ruinar t
Ruinart broke with tradition in 2020
able winegrowing program at the
Hennessy has partnered with the
With the Covid-19 crisis dealing a
by choosing to no longer use indi-
Vinexpo trade show in Paris. Adapting
maritime transport company Neoline
heavy blow to the French economy,
vidual boxes, and took its sustaina-
to climate change, preserving our
to step up its efforts to reduce
most young entrepreneurs are in a
ble approach a step further with a
terroirs, saving water, and conserving
the impact of its maritime logistics.
difficult position. In response, build-
new case for its cuvées. This new
biodiversity are all key factors in pro-
Neoline operates sailing cargo ships
ing on its Bold by Veuve Clicquot
packaging responds first and fore-
tecting our “living soils”. To illustrate
propelled mainly by clean and
program, the Maison launched the
most to a key winemaking priority:
this vision, Moët Hennessy has for-
renewable wind energy. In particular,
Sista x Bold program, devoted to
providing better protection from
malized its commitments:
this operating model yields a 90%
helping women entrepreneurs nav-
light exposure, especially for Blanc
– All vineyards will be herbicide-free
reduction in fuel consumption, CO₂
igate the economic recovery and
de Blancs, which is sold in transpar-
by the end of 2020 for Champagne
emissions and transport-related
prepare for the future. As part of
ent bottles. But it is also a chance to
and by the end of 2021 for Cognac.
impacts compared to a conventional
this program, Veuve Clicquot joined
use the Maison’s spirit of innovation
Moët Hennessy will continue to work
vessel of the same size. This collab-
forces with the Sista collective to
to drive sustainable development:
with all its winegrower partners
oration is just the latest develop-
create a platform that pools the
the new case – which is made entirely
to help them become certified as
ment in Hennessy’s longstanding
expertise of 100 mentors to offer
of cellulose fibers and is fully recy-
sustainable.
sustainable transport approach,
women entrepreneurs 1,000 hours
clable – required several technologi-
– €20 million will be invested in the
with this new mode of transport
of guidance and dialogue, with the
cal challenges to be overcome to
Champagne region in a research
expanding its traditional ship and
goal of overcoming the current
make it impervious to light and
center to promote sustainable wine-
rail network, which already accounts
situation, preserving their business
ensure that it would hold up under
growing.
for more than 94% of its shipments.
and facing into the future with
serving conditions. With its minimal-
– A “Living Soils” training program
will be set up.
Certain vineyards will go even further,
such as Clos des Lambrays, Château
d’Yquem and Château du Galoupet,
which have begun their conversion
to organic winegrowing and are test-
ing biodynamic practices across
several hectares of vineyards.
confidence – in themselves and
ist paper shell, the second skin case
their plans.
is a sustainable innovation that
brings us back to nature. Two years
of research and development culmi-
nated in the design of this second
skin case. It is nine times lighter than
the previous generation of cases,
with a 60% smaller carbon footprint.
At a glance
2020 Review
Strong recovery in the United States in the second half
of the year and improvement in trends in China
All Maisons showed great resilience and gained market share. After a significant drop in
volumes in the second quarter, the Champagne business experienced improved trends in
the second half, particularly in the United States. Beginning in June, Hennessy cognac
recorded a strong recovery, driven notably by demand in the United States. 2020 saw the
integration of the 2019 acquisitions Château d’Esclans and Château du Galoupet for the
first time over a full year, establishing a strong position for Moët Hennessy in the growing
market for high-end rosé wines. A new high-end rum, Eminente launched in the third
quarter.
2021 Outlook
In the current volatile and uncertain context, Moët Hennessy is cautiously optimistic with
respect to the start of 2021 but remains confident regarding the Maisons’ medium-term
development prospects. Grounded in their heritage and expertise, stretching back centuries
in most cases, LVMH’s Wines and Spirits brands will steadfastly focus on excellence,
authenticity and sustainability, which give them solid advantages in a rapidly changing
business environment. In order to provide ever more varied experiences and adapt to new
consumer behavior, their strong appeal will be celebrated through inspiring new collabora-
tions with big names, bold innovations, inventive packaging and fresh marketing strategies.
Moët Hennessy will continue to develop its portfolio while focusing on supporting and
strengthening the transformation of its distribution, with the acceleration in e-commerce,
and through targeted investments in the most promising markets. True to their long-term
vision, all the Maisons aim to accentuate their sustainability commitments to protect the
environment and pursue the development of innovative solutions through the “Living Soils
– Living Together” program.
50 • 51
LVMH 2020 . Wines & Spirits 2 0 2 0 H I G H L I G H T S
The Wines and Spirits business group drew on
the strength of its portfolio of prestigious, powerful
brands to maintain its robust innovative momentum
Buoyed by its leading international position, Moët &
Chandon demonstrated its resilience and recorded
growth in the United States, its largest market.
and constantly enhance its customers’ experiences
Markets in Europe saw a rebound at the end of
while protecting the safety of its employees and
the year, thanks to the success of the limited-edition
actively supporting its partners throughout the crisis.
LVMH’s Maisons had to contend with the near-total
disappearance of business in airports and on cruise
“Specially Yours” series.
Dom Pérignon was affected by the shutdown of some
of its main distribution channels, namely fine restaurants,
ships; intermittent closures of restaurants, bars and
hotels and entertainment venues, as well as the
night clubs; and serious difficulties faced by some of
cancellation of major iconic events of which the Maison
their distributors and partners. Amid this exceptionally
is a partner. The second half of 2020 saw the launch
challenging context, all of the business group’s
of Dom Pérignon Vintage 2010, the first vintage crafted
activities demonstrated great resilience and gained
market share, with a decline in organic revenue limited
to 14%. Additionally, strong commitments to expand
by Vincent Chaperon, the Maison’s new Cellar Master.
Veuve Clicquot showed good resilience, especially
in the United States. Since 1972, the Maison
sustainable winegrowing practices were made
has showcased exceptional women entrepreneurs
at the Vinexpo Paris trade fair in early 2020.
through the Bold Woman Award. The 2020 award
The champagne houses, synonymous with celebration,
ceremony – held virtually for the first time –
were hit particularly hard: organic revenue was down
recognized female business leaders who have inspired
17%, with volumes down 19%.
and encouraged generations of women to be bold.
Dom Pérignon
The iconic Japanese artist Yayoi Kusama designed
initiative, and its new creative collaboration with British
a unique bottle and gift box for the Maison’s latest
vintage, La Grande Dame 2012, as an homage
to the emblematic “Grande Dame of Champagne”,
Madame Clicquot.
Ruinart confirmed its very strong resilience and
significantly increased its market share, particularly
artist David Shrigley focused on protecting the planet.
Krug confirmed its value-enhancing strategy and
presented two new editions: Krug Grande Cuvée
168e Édition and Krug Rosé 24e Édition. The Maison
strengthened ties with the Krug Lovers community
through its “Krug Connect” immersive virtual
in Europe. The Maison reaffirmed its commitment to
experiences. Through its “Fonds K pour la Musique”
the environment through the highly acclaimed launch
endowment fund, the Maison continued to support
of its new 100% paper “second skin” case, which
a range of musical initiatives.
is sustainably designed and plastic-free. It also
demonstrated its social commitment with a range of
initiatives, including its support for healthcare workers
2020 marked the first full year of integration
for Château d’Esclans and Château du Galoupet,
acquired in 2019, which have strengthened
through a partnership with the “À table, les soignants!”
Moët Hennessy’s position in the growing market
Château d’Esclans
52 • 53
LVMH 2020 . Wines & Spirits for high-end rosé wines. The year also saw the
African-American, Latino and Asian family-owned
devastating Glass Fire in California’s Napa Valley,
which caused major damage to the Newton winery
and vineyards. Chandon continued its expansion
in its main markets and prepared for its relaunch
businesses in the United States, hit particularly hard
by the crisis. After the slowdown in demand observed
at the beginning of the year due to the pandemic
and the timing of the Chinese New Year, China
in 2021.
Hennessy, the world’s leading premium spirits brand
by value for the second year in a row, emerged from
showed very encouraging signs of a rebound in the
second half, mainly driven by the Maison’s X.O quality
and sales to consumers, both online and in stores.
the public health crisis in a strong position relative
Hennessy strengthened ties with its customers
to its competitors, with a limited decrease in volumes.
by opening new points of sale, such as “BLENDS
The Maison saw remarkable growth in the United
by Hennessy”, a concept bar on the Bund
States, driven mainly by its V.S quality, but also
in Shanghai and a store in Sanya on the island
by V.S.O.P and Black. Hennessy launched an
of Hainan. A global partnership was signed with the
initiative called “Unfinished Business” to support
NBA, an iconic league with which Hennessy shares
Veuve Clicquot
Ruinart
54 • 55
LVMH 2020 . Wines & Spirits Glenmorangie
the value of surpassing oneself. In 2020, the Maison
also stepped up its commitment to sustainable
winegrowing and transportation.
Glenmorangie and Ardbeg whiskies saw strong
growth in retail sales. Their reputations in the single
malt category were further cemented by winning
several prestigious awards. New creations like Ardbeg
Wee Beastie met with great success. Their distilleries
continued work on expanding their production
capacities, which is expected to be completed in 2021.
While Belvedere vodka was affected by the closure
of night clubs, Woodinville Whiskey Company and
Volcán de mi Tierra continued their development,
buoyed by favorable trends in the US market.
Moët Hennessy expanded its portfolio of spirits
with the launch of Eminente, an exceptional Cuban
rum aimed at the European market.
Online sales for all the Maisons saw strong growth
during the lockdowns, as did those for the Clos19
platform, which is currently available in Germany
and the United Kingdom, with access to be extended
to other countries in 2021.
Krug
56 • 57
LVMH 2020 . Wines & Spirits Louis Vuitton, Women’s Fall/Winter 2020-21 show.
LVMH
Fash ion &
Leat her Good s
2020
Christian Dior
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 global preeminence, Christian Dior’s exceptional development,
the growth of a collection of unique 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.
Inspired 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’
distinctive identities, and are the artisans of their creative excellence.
Balance between iconic products
and innovation
Since 1854, Louis Vuitton’s renown has been built on the flawless execution
of its unique trunk-making expertise, its full control over distribution and
its exceptional creative imagination: a source of perpetual renewal and innova-
tion. Its product line has continuously expanded for over 150 years with new
models – from luggage to handbags and more – and new materials, shapes
and colors.
Ever since its first show, dubbed “New Look” by the press, Christian Dior has
continued to redefine fashion as it has become an icon of French luxury
throughout the world. Monsieur Dior’s unique vision is conveyed today with
bold inventiveness throughout the Maison’s entire range.
By striking the right balance between new releases and iconic lines, these
two Maisons continue to dazzle and surprise their customers, making their
boutiques 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, which
recognizes the creative talent of an outstanding designer every year, was
created to reaffirm this commitment. As a fashion industry leader, LVMH feels
that is our vocation to nurture the creative talent of the future. We also feel it
is our responsibility to ensure the well-being of the fashion models who work
for our Maisons, which is why we decided to draw up the Charter on Working
Relations with Fashion Models and their Well-Being.
60 • 61
2020 REVENUE BY REGION
(in %)
Other
markets
9%
Asia
(excl. Jap an)
39%
France
5%
Europe
(excl. France)
18%
United States
19%
Japan
10%
Revenue
€2 1 , 207m
–3% (1)
LW G cer tific ation
of tan neries (2)
74%
Prof it f rom recur ring
op erations
€7, 18 8 m
–2%
Operating
investments
€82 7m
–31%
(1) Organic change 2020/2019.
(2) Percentage of tanned leather sourced from certified tanneries.
Major s t r ateg ic
pr ior it ies
Continue to develop Louis Vuitton,
blending the timeless and
the modern, while preserving
unmatched quality standards and
an exclusive distribution channel,
which is unique worldwide.
Continue to pursue Dior’s
dynamic growth.
Build on the success of the
other Maisons, in particular Celine,
Loewe, Fendi and Loro Piana.
LVMH 2020 . Fashion & Leather Goods O U R M A I S O N S T A K E A C T I O N
Louis Vuitton takes
action for sustainable
development
Kenzo protects
wild tigers with
the WWF
Fendi is committed
to transparency
Fendi has shared its sustainable
Christian Dior joins
the Global Education
Coalition founded
by UN ESCO
Louis Vuitton unveiled its new
Kenzo joined forces with the World
development strategy on its web-
roadmap, aligned with the LVMH
Wide Fund for Nature (WWF) to
site. It has two objectives: to increase
Christian Dior supports the Global
Group’s next LIFE 360 targets, and
support the “TX2” global goal,
transparency and to reinforce the
Education Coalition. Launched by
set ambitious goals to preserve nat-
aimed at protecting wild tigers
Maison’s identity as a brand that
UNESCO in response to the Covid-
ural resources and make a positive
around the world and doubling their
champions sustainability, particu-
19 pandemic, this initiative aims to
impact on society.
population by the end of 2022. As
larly by presenting what it is doing
help countries develop the best dis-
– Ensuring responsibly sourced raw
part of this partnership, Kenzo
with respect to its supply chain, sus-
tance learning solutions and reach
materials:
launched a capsule collection in
tainable materials, circular economy
the most at-risk children and young
The Maison is committed to apply-
homage to this majestic big cat,
initiatives, and environmental excel-
people. With up to 87% of the
ing the most exacting sourcing
which is also its emblem. For every
lence at its production sites and
world’s student population having
standards for all its raw materials by
item sold, Kenzo will donate $10 to
stores. For example, Fendi has pub-
been affected by school closures
2025 and to phase out single-use
the WWF to help it reach its TX2
lished the full list of its raw material
due to Covid-19, inequalities have
plastic in its packaging by 2030.
goal. Through this initiative, Kenzo
and finished product suppliers, as
widened in terms of access to edu-
– Taking action for the climate:
stays true to its philosophy of being
well as the results of its social and
cation. As the first fashion house to
In line with the ambitious goals
inspired by and protecting nature.
environmental audit program: a fully
join the organization, Dior builds on
transparent approach that show-
its commitments made as part of its
cases its responsible and almost
Women@Dior initiative to support
exclusively Italian supply chain.
young women’s education.
set by the Paris Agreement in 2015,
Louis Vuitton is committed to sup-
plying all its production and logistics
sites with renewable energy and
equipping all its stores with LED
lighting systems by 2025.
– Implementing a circular approach
to creativity:
By 2025, all product categories will
be subject to sustainable design
practices, and all materials used in
events and window displays will be
recovered for reuse.
At a glance
2020 Review
Remarkable resilience
In 2020, the Fashion & Leather Goods business group recorded a decrease in organic
revenue of only 3% in an environment marked by the closure of stores over a period of
several months. The second half saw a noteworthy rebound in activity, with double-digit
organic revenue growth in both quarters. China recorded a strong recovery in revenue
beginning in April and the United States in July. Louis Vuitton, always driven by exceptional
dynamism and creativity, was able very quickly to transform and revitalize its customer
relations with a high quality and efficient digital service. Many innovations were unveiled
throughout the year, such as the Pont 9 range and the 1854 canvas. The Maison’s commit-
ment to high quality craftsmanship and sustainability continues in the form of responsible
creativity. A new workshop opened at Vendôme in France. Christian Dior demonstrated
remarkable momentum and gained market share in all regions thanks to its exceptional
creativity. The Lady Dior bag has become a global icon, the Women’s collections of Maria
Grazia Chiuri and the Men’s runway shows of Kim Jones were a huge success. The other
fashion brands showed solid resilience during the year, notably Loewe with the creations of
J.W. Anderson, Celine with the creations of Hedi Slimane, Fendi, Marc Jacobs and Loro Piana.
It should be noted that our Group very substantially outperformed its competitors in fashion
and leather goods in the second half of the year.
2021 Outlook
In an environment that remains uncertain, LVMH’s Maisons can count on their highly com-
mitted, responsive staff to unleash their creativity and build on their values of quality and
sustainability, while maintaining their efforts to adapt to the economic situation. Focusing
on their priorities, they will be well positioned to take advantage of a solid recovery, when
it arrives, and regain strong momentum in the medium term. Driven by its talented designers
and craftspeople, Louis Vuitton will continue to enrich its offering and invest in its distri-
bution network. Future developments will fit within the Maison’s steadfast aim of infusing
its exceptional heritage with the best of modernity, providing each customer with an
exceptional experience in its stores and online. Christian Dior Couture aims to continue its
sustained growth. Among the highlights of the year, the House of Dior’s historic location
at 30 Avenue Montaigne is set to reopen its doors. Fendi will present the first Women’s
Couture and Ready-to-Wear collections under the leadership of its new Creative Director
Kim Jones. The success of its iconic Peekaboo and Baguette bags will be a key growth
driver for the Maison. The store network will continue to grow, with openings slated in
Sydney, Milan and Doha, along with numerous plans under way in several cities in China.
Loro Piana will add to its lines of leather goods and clothing made with sumptuous materials.
The e-commerce site will expand to new markets. Celine will hold virtual shows designed and
filmed by Hedi Slimane. Loewe will continue to innovate with Jonathan Anderson.
62 • 63
LVMH 2020 . Fashion & Leather Goods 2 0 2 0 H I G H L I G H T S
Amid the challenging conditions of a year marked
on a roving journey from Paris to Tokyo via Shanghai
by the closure of stores for several months, thanks
and Miami for Virgil Abloh’s Men’s show. The year also
to their highly committed staff all of our Maisons were
saw the launch of the Stellar Times line in high jewelry
able to continue mobilizing their creative resources,
and LV Volt in fine jewelry, as well as the discovery
enriching their collections and building up their digital
of two exceptionally rare diamonds, called Sewelô
presence. While tightening their management in
and Sethunya. Flagship store openings included
response to the impact of the public health crisis,
the Louis Vuitton Maison Osaka Midosuji, the result of
our iconic brands benefited from their solid positions
a collaboration between architects Jun Aoki and Peter
and exceptional appeal. The second half of the year
Marino, reflecting the atmosphere of the city of Osaka
saw a strong upturn in activity, with double-digit
and reaffirming Louis Vuitton’s ties with Japan. True
organic revenue growth. Several initiatives contributed
to the Maison’s values, the new “Towards a Dream”
to the collective effort to combat the pandemic.
Louis Vuitton continued to be driven by its exceptional
momentum and creativity, with the art of innovating
marketing campaign was launched, inviting travelers
to discover Iceland. During the public health crisis,
thanks to its highly committed craftspeople who
in all its businesses and offering its customers a unique
stepped forward and volunteered, Louis Vuitton
experience. During this unprecedented period,
mobilized a number of its workshops in France
Louis Vuitton was able to very quickly transform and
to make protective masks and gowns for healthcare
boost its customer relationships with a high-quality
providers. Louis Vuitton also further expanded
and highly effective digital service strategy. Numerous
its production capacity by opening a new workshop
innovations were unveiled throughout the year:
in Vendôme, France, and maintained its commitment
in leather goods, the contemporary yet timeless
to high-quality, sustainable craftsmanship dedicated
Pont 9 leather model; the summery, colorful Escale
collection; the Since 1854 Jacquard canvas, inspired
by the Maison’s heritage; and the iconic Capucines
to responsible design.
Christian Dior Couture showed remarkable momentum
and gained market share in all regions thanks
bag, reinterpreted by six major contemporary artists.
to its immense appeal. Sales to local customers rose
The new collections were presented at fashion shows
sharply. The iconic Lady Dior bag was revisited by
featuring novel formats: inside the freshly renovated,
ten artists from around the world, and the first women’s
mythical building of La Samaritaine in Paris for Nicolas
loungewear line, Dior Chez Moi, was very well received.
Ghesquière’s Spring/Summer Women’s show; and
Limited editions designed through a number
Louis Vuitton
of creative collaborations were launched, including
health emergency, Maison employees volunteered
the Air Dior sneaker, which was a major success.
using the Baby Dior workshop in Redon to produce
A number of fashion shows featuring inspiring decor
masks for front-line workers, and workshops in Italy
paid tribute to figures from the world of art and
fashion. A host of events and cultural activities were
held during the second half of the year: Kim Jones
made gowns for hospital staff.
Fendi demonstrated great resilience. Following
the major impact of the pandemic at the beginning
teamed up with Ghanaian artist Amoako Boafo
of the year, in the second half of the year the Maison
for his Spring/Summer Men’s collection, followed
saw remarkable growth in China and in online sales,
by a colorful and joyful collaboration with American
and continued to gain market share in South Korea
artist Kenny Scharf for his Fall collection, unveiled
and North America. The Fendi Roma holiday capsule
simultaneously in December in Beijing and around
collection, inspired by the Maison’s iconic packaging,
the world; in Lecce, Italy, the ancestral skills of local
was a major success. Active support was provided
craftspeople and artists were honored in Maria Grazia
in the fight against the pandemic through donations,
Chiuri’s 2021 Cruise show; and a poetic film was
particularly to the Lombardy region, but also by
released, following the mythical voyage of a trunk
activating its network of suppliers to produce protective
filled with haute couture dresses inspired by the
masks and gowns for the Tuscany and Lazio regions,
post-war era. A new flagship store was inaugurated
and for hospitals in Bergamo. Launched in Rome
on Rue Saint-Honoré in Paris and two major stores
in June as a celebration of summer, Fendi continued
opened in China. On the heels of its success in Paris
its collaboration with the music world through
and London, the Christian Dior: Designer of Dreams
the Anima Mundi project, featuring performances by
exhibition made a stopover in Osaka before heading
renowned artists in Shanghai, Tokyo, Seoul and, soon,
to Shanghai, attracting more than 200,000 visitors.
New York. The Hand in Hand project, in collaboration
Dior launched its “Dior Talks” podcasts in 2020,
with 20 craftspeople in each of Italy’s 20 regions,
featuring conversations with inspiring individuals
showcased local expertise and traditional skills by
on art, culture and society. In response to the public
reinterpreting the iconic Baguette bag.
Fendi
64 • 65
LVMH 2020 . Fashion & Leather Goods Christian Dior
Loro Piana opened its new flagship store in Tokyo’s
Ginza district, where an immersive sensory journey
called “An Odyssey of Touch” took its customers
on a tour of the Maison’s history, the excellence
of its raw materials and the quality of its products.
an e-commerce mini-program on the WeChat platform
in China, and the rollout of its e-commerce site in some
twenty countries.
Loewe showed good resilience and high adaptability.
Under the impetus of its Creative Director Jonathan
The new “Somewhere in Loro Piana” marketing
W. Anderson, the Maison continued to pursue its
campaign was rolled out, targeting an increasingly
sustained pace of innovation and an active marketing
young clientele. A customization service was
strategy. Its highly original “Show-in-a-Box” and
expanded to include new product categories.
Celine saw a strong recovery in the second half
of the year, buoyed by its clientele in Asia. The Maison
“Show-on-the-Wall” fashion show concepts received
unanimous praise from the press and the Maison’s
customers. The fourth edition of the Paula’s Ibiza
continued to develop the Women’s Ready-to-Wear
collection was launched, enhanced by a fragrance
collections designed by Hedi Slimane, which enjoyed
and a Loewe x Smiley capsule collection. A new
growing success. In leather goods, the Triomphe line
received an excellent welcome. The year was marked
by rapid advances in digital, including the launch of
flagship store opened on Rue Saint-Honoré in Paris.
Givenchy announced the arrival of the Maison’s new
Creative Director Matthew M. Williams, a 2016 finalist
Celine
66 • 67
LVMH 2020 . Fashion & Leather Goods for the LVMH Prize for Young Fashion Designers.
in collaboration with the Monnaie de Paris (Paris Mint).
Hardware – the designer’s signature – featured
Its New York flagship store’s move to 57th Street marked
prominently in his first collections, and the iconic
the end of the year. Its online store, launched in Europe,
Antigona bag celebrated its 10th anniversary.
A highlight for Kenzo was the first Men’s and Women’s
shows by Felipe Oliveira Baptista, which received
unanimous acclaim from the fashion world. These
collections marked a new chapter in the interpretation
the United States and Japan, saw rapid growth.
Amidst the closure of its three production sites for
several months and the suspension of international
travel, RIMOWA illustrated its drive for innovation
and its spirit of resilience by reimagining travel.
of the Maison’s values and the legacy of its visionary
The new Personal line of cross-body cases was
founder, Kenzo Takada, who passed away in 2020,
launched in several colors, and the Never Still
a beacon of creativity, color and freedom.
Berluti expanded its offering with the new Signature
canvas, featuring the Scritto motif, inspired by
collection of multi-use soft bags was unveiled.
Marc Jacobs continued to develop its core Snapshot
and Traveler lines. A new Heaven collection was
an 18th-century manuscript. To commemorate its
launched, offering a highly diverse ensemble of
125th anniversary, the Maison reinterpreted the iconic
designs. The Maison reinforced its online presence,
Andy model in a Penny Loafer version designed
particularly in China.
Loro Piana
Loewe
68 • 69
LVMH 2020 . Fashion & Leather Goods Parfums Christian Dior, Fields of May roses on the Colle Noire, near Grasse, during the harvest.
LVMH
Perfumes &
Cosmetics
2020
Parfums Christian Dior
F O C U S I N G O N Q U A L I T Y
2020 REVENUE BY REGION
(in %)
A N D C U LT I VA T I N G
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 Maisons as well as younger brands with a promising
future. The creative momentum of LVMH’s Maisons is driven by growth in its
iconic lines as well as bold new products. They are all driven by the same val-
ues: the pursuit of excellence, creativity, innovation and appeal.
Unique creative momentum
With surging demand in Asia and the huge popularity of skincare, the global
perfume and cosmetics market is highly competitive, with increasingly compact
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 performance 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. The
Maisons also uphold their commitment to biodiversity and sustainable design.
Excellence and innovation in retailing
All the brands are accelerating the implementation of their online sales plat-
forms and stepping up their digital content initiatives. Excellence in retailing
is key. It requires expertise and attentiveness from beauty consultants, as well
as innovation in sales, both in stores and online. Our brands are actively incor-
porating digital tools to enhance the customer experience and attract new
consumers. The Group’s refusal to engage in excessive special offers and
parallel sales, although such practices are used by a number of its competitors,
helps ensure the powerful appeal of LVMH’s Maisons.
Other
markets
9%
Asia
(excl. Jap an)
45%
France
9%
Europe
(excl. France)
18%
United States
14%
Japan
5%
Revenue
€5 , 24 8 m
–22% (1)
Prof it f rom recur ring
op erations
€80 m
–88%
Environmental performance
index of packag ing (2)
+10%
Operating
investments
€2 80 m
–26%
(1) Organic change 2020/2019.
(2) Change between 2013 and 2020.
Major s t r ateg ic
pr ior it ies
Maintain our creativity in terms
of innovation and appeal.
Focus on developing Parfums
Christian Dior in harmony
with Couture.
Pursue the global expansion
of our other brands.
Strengthen our commitment
to biodiversity and sustainable
design.
72 • 73
LVMH 2020 . Perfumes & Cosmetics O U R M A I S O N S T A K E A C T I O N
Parfums Christian Dior
joins forces
with the Beaux-Ar ts
de Paris ar t school
LVMH’s Maisons take
action to fight against
the spread of Covid-19
Faced with the risk of a hand sani-
Acqua di Parma takes
action to support the
community and protect
the environment
Guerlain par tners with
Daughters of Tomor row
In Asia, through its partnership with
Daughters of Tomorrow – a Singa-
Before becoming a legendary
tizer shortage, the Group mobilized
As a follow-up to the environmental
pore-based nonprofit that works to
fashion designer and perfumer,
the production units of a number
life cycle analyses carried out on
empower women from low-income
Monsieur Christian Dior came to
of its major Perfumes & Cosmetics
several products and in an effort to
families – Guerlain organized four
prominence as a visionary gallery
Maisons. Parfums Christian Dior,
fast-track sustainable design initia-
virtual coaching sessions for five
owner, patron of the arts and friend
Guerlain and Parfums Givenchy
tives, Acqua di Parma has launched
underprivileged women interested
of artists. This fondness for the arts
were able to adapt their production
Colonia Futura. Its fragrance ingredi-
in working in the beauty sector. The
has stood the test of time and today
equipment to produce and donate
ents are derived exclusively from
aim of this initiative was to give the
given rise to a partnership between
very large quantities of bottled hand
natural and plant-based sources.
participants all the keys they need
Parfums Christian Dior and the
sanitizer to the AP-HP Paris hospital
Its packaging is made of Forest
to find a job in this field. To speed up
Beaux-Arts de Paris art school, with
system and many other healthcare
Stewardship Council (FSC)-certified
access to employment, LVMH has
the endowment of the Inhabiting the
facilities, local government offices,
paper and is fully recyclable. Bottle
put in place job coaching sessions.
Landscape Chair: “Where art meets
nonprofits and key service providers
caps are made from recycled raw
Recruiters and beauty consultants
the living world”. This groundbreak-
(including the Paris police headquar-
materials and the bottles themselves
from the Group’s Maisons offer guid-
ing training program guides and
ters, Air France and major retailers).
are among the lightest 10% on the
ance to job seekers and help them
supports students who wish to
creatively engage with nature and
the living world – subjects close to
the heart of the House of Dior, itself
deeply anchored in the terroirs of
Normandy and Grasse (with its villa
in Granville, where Monsieur Christian
Dior spent his childhood, and the
Château de La Colle Noire in Grasse).
At the end of the school year, stu-
dents will present projects to a jury of
experts, which will select the winner
of the La Colle Noire Dior Award.
market. The Maison took the initiative
build self-confidence. The program
a step further by offering in-store
is aimed at groups that are under-
refills of empty bottles and delivery
represented in the labor market.
by bicycle in certain cities. Acqua di
Participants are also made aware of
Parma is also donating 100% of prof-
the program by the Group’s part-
its from online sales of Colonia Futura
ners who are active in the fields of
on acquadiparma.fr to the hospital
education, disability and integration.
school at Robert Debré Hospital
in Paris. This initiative reflects the
Maison’s desire to help support edu-
cational programs for hospitalized
children.
At a glance
2020 Review
Continuous innovation and rapid growth in online sales
In a sector suffering from the decline in international traveller spend and makeup, LVMH’s
major brands chose to be selective in their distribution and, unlike certain competitors,
limited promotions and refused to sell indirectly to the Chinese parallel market, which
presents major risks to the medium term desirability for brands that follow that route. The
Perfumes and Cosmetics brands are showing good resilience resulting from the growth of
skincare and online sales, particularly in Asia. Parfums Christian Dior saw a gradual
improvement in the second half of the year, underpinned by the success of its new products
Miss Dior Rose N’Roses and J’adore Infinissime in perfume, and Rouge Dior in makeup.
Guerlain benefited from the remarkably dynamic skincare market, with the continued
success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin,
developed by Rihanna, is off to a very promising start.
2021 Outlook
In an environment that remains uncertain, LVMH’s Maisons will remain vigilant in light of the
economic situation, reaffirm their fundamentals and focus their efforts on their strategic
development priorities: innovation, utmost quality in their products, the constant pursuit
of excellence and selectivity in distribution, and developing their digital presence. Parfums
Christian Dior will maintain its strong innovative momentum across all of its product
categories while continuing to expand its global reach and further raise the bar for creativity
and excellence. Fragrances will be the focus of particular attention, with the ongoing devel-
opment of its iconic lines, combined with a unique customer experience both in stores and
online. Building on the Maison’s couture spirit, makeup will undergo a robust innovation
program and upmarket strategy. Skincare will continue to make strong advances, with an
emphasis on premium lines, particularly in China. Guerlain will expand further internation-
ally, in particular by raising its profile in China, Japan, the Middle East, and in travel retail
once business activities resume. The Maison will focus on developing its core lines, which
will be enriched with bold new creations. Guerlain will showcase its position as a Maison at
the forefront of high perfumery and luxury cosmetics by rolling out a new store concept
and a more selective distribution strategy. At Parfums Givenchy, Le Soin Noir will return
to center stage, while Acqua di Parma will pay tribute to its long-standing expertise in
fragrance extraction with the launch of Bergamotto La Spugnatura. Benefit will unveil a
number of innovations, including the worldwide launch of They’re Real! Magnet mascara.
Fresh will reaffirm its expertise through an even more effective serum. Make Up For Ever
will roll out original initiatives, in particular in foundation and the customer experience, both
digital and in-store. Maison Francis Kurkdjian will continue to pursue the highly selective
growth of its distribution. Perfumes Loewe will expand the distribution of its Home Scents,
accompanied by a series of special events.
74 • 75
LVMH 2020 . Perfumes & Cosmetics 2 0 2 0 H I G H L I G H T S
LVMH’s major Perfumes and Cosmetics brands
demonstrated their resilience in a sector affected
Parfums Christian Dior showed good resilience,
buoyed by its iconic lines and the strength of
by the decline in spending by international travelers
its innovations, amidst shutdowns and significant
and in makeup sales overall, partially offset by stronger
slowdowns in its manufacturing and sales activity
results for skincare products. All of the Maisons saw
for part of the first half of the year. Business improved
rapid growth in online sales. Combining rigorous
gradually in the second half, with a notable acceleration
management with their strong drive for innovation,
in the fourth quarter, especially in China, the United
they also showed their support in the collective fight
States, Japan and the Middle East. The successful
against the pandemic. In France in particular, thanks
worldwide launches of Miss Dior Rose N’Roses,
to a large number of employee volunteers, Parfums
the new Infinissime version of J’adore and the new
Christian Dior, Guerlain and Parfums Givenchy were
Dior Homme, as well as the launch in China of
able to adapt the operations of their production units
the new Rouge Dior lipstick, all attest to the Maison’s
to manufacture large quantities of hand sanitizer,
excellence and creativity. The Maison Christian Dior
which we donated to hospitals.
collection of exceptional fragrances performed very
Parfums Christian Dior
Guerlain
76 • 77
LVMH 2020 . Perfumes & Cosmetics well. Other lines built further momentum, particularly
notably in China, where the Maison ramped up its
the men’s fragrance Sauvage as well as the Forever
development and gained market share. The Abeille
foundation and its new concealer. Major breakthroughs
Royale and Orchidée Impériale lines – firmly
in skincare included the January launch of Capture,
backed by Guerlain’s commitment to biodiversity
which epitomizes the scientific rigor of LVMH’s
and sustainable innovation – continued to see
research and innovation center as well as the sensory
exceptional growth. In fragrances, the Aqua
expertise that characterizes its formulas, while Dior
Allegoria collection achieved solid gains, as did
Prestige, Micro-Lotion de Rose and Micro-Huile de Rose
the Maison’s Haute Parfumerie collections, illustrating
continued their strong development, particularly in
the excellence and creative virtuosity that have built
Asia. The Maison saw a considerable uptick in online
its renown. In makeup, the exceptional rejuvenating
sales, especially in China. A number of digital initiatives
foundation Parure Gold held its positions, particularly
were pursued, expanding its customer base and
in Asia. The year also saw a number of breathtaking
offering a unique brand experience. The expansion
displays and installations at stores paying tribute
of its network of stores in Asia and the Middle East
to the Maison, in connection with its Bee Garden
helped drive growth in direct sales to customers.
Guerlain demonstrated good resilience and strong
responsiveness. Skincare turned in excellent results,
pop-ups and the year-end holidays. Guerlain’s
long-standing “In the Name of Beauty” sustainability
program was reaffirmed with the introduction
Guerlain
of a sustainable design approach and a number of
the Maison saw strong momentum in its online sales
bee protection initiatives, including Women for Bees,
and the successful addition of the Microfilling Pen to
a partnership with UNESCO aimed at training women
to become beekeepers and developing new beekeeping
supply chains at UNESCO’s biosphere reserves around
the world.
Parfums Givenchy delivered a strong performance
in China, thanks in particular to its iconic Prisme Libre
line. Its fragrance L’Interdit continued to gain market
share in Europe, and especially in France. Benefit
was hampered by the limited availability of its services
its brow collection, an area in which the brand further
consolidated its global leadership position. Fresh
actively developed its digital marketing campaigns
and its online sales, particularly in China. Its premium
Crème Ancienne line proved extremely popular and
its Kombucha Facial Treatment Essence continued
to enchant customers. Make Up For Ever successfully
launched its new Rouge Artist lipstick, co-designed
with the Maison’s star makeup artists. Its innovative
due to closures of its points of sale. Nevertheless,
formula and unique look made it one of the brand’s
Parfums Givenchy
78 • 79
LVMH 2020 . Perfumes & Cosmetics Maison Francis Kurkdjian
new icons. Fenty Beauty maintained its appeal as
a premier makeup brand. Fenty Skin, which launched
exclusively online, generated unprecedented buzz
during the pandemic. At Parfums Kenzo, the Flower
by Kenzo line celebrated its 20th anniversary with
was driven by solid momentum in China, the success
of its Paula’s Ibiza fragrance and the launch of Home
Scents, a collection of home fragrances created with
Jonathan Anderson. Acqua di Parma opened new
stores in China and launched its first eau de cologne
the launch of Poppy Bouquet. The Maison has partnered
made with 99% natural ingredients, Colonia Futura.
with the Louvre to create floral compositions in
The Maison actively supported the fight against
the Tuileries Gardens in Paris each spring and summer
until 2023. Maison Francis Kurkdjian saw its growth
accelerate, due in particular to the success of its new
Covid-19 in Italy through its #StayHome campaign.
Ole Henriksen expanded its footprint in Europe
and the Middle East and added a serum to its flagship
fragrance L’Homme À la rose, which upends received
notions of masculinity. Perfumes Loewe’s performance
Banana Bright line.
Acqua di Parma
80 • 81
LVMH 2020 . Perfumes & Cosmetics Bvlgari, B.Zero1 Rock
LVMH
Watches &
Jewel r y
2020
TAG Heuer Connected Golf Edition
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 and Jewelry business group is one of the most dynamic
players in its sector. It continues to gain market share with a successful strategy
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. 2021 will see the arrival of the prestigious American
jewelry house Tiffany, which will substantially bolster the business group’s
standing in a very dynamic, highly promising market segment.
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 combining
audacity with excellence, as illustrated by TAG Heuer’s next-generation smart-
watch. Harnessing expertise is a key priority, which the Maisons address by
optimizing their manufacturing processes, implementing synergies and boost-
ing their production capacity. Developing brand awareness with target audi-
ences and increasing their social media presence are also crucial to gaining
new market share.
Quality and productivity in 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 with great care, making sure the most exacting standards are met. In
an equally selective approach, the Maisons also continue to refurbish and open
their own directly operated stores in buoyant markets in key cities.
2020 REVENUE BY REGION
(in %)
Other
markets
13%
Asia
(excl. Jap an)
43%
France
4%
Europe
(excl. France)
20%
United States
8%
Japan
12%
Revenue
€3 , 3 5 6 m
–23% (1)
Prof it f rom recur ring
op erations
€3 02 m
–59%
RJC COP
diamond cer tific ation (2)
9 9 %
Operating
investments
€2 10m
–29%
(1) Organic change 2020/2019.
(2) Percentage of diamond carats sourced from COP-certified direct suppliers.
Major s t r ateg ic
pr ior it ies
Reinforce our Maisons’
desirability thanks to expert
craftsmanship and distribution.
Integrate Tiffany.
Spur continued growth
at Bvlgari and TAG Heuer
with innovative products.
Optimally develop
manufacturing facilities.
84 • 85
LVMH 2020 . Watches & Jewelry O U R M A I S O N S T A K E A C T I O N
Bvlgari aims for
excellence in gold and
diamond sourcing
Hublot pledges
to protect
endangered rhinos
Bvlgari:
Save the Children
Beirut
Fred and
Visières de l’espoir
During the first lockdown, Fred got
In 2015, Bvlgari became the world’s
Two-thirds of the world’s rhinoceros
In 2009, Bvlgari decided to get
involved with the Visières de l’espoir
first jewelry house to source
species are at risk of disappearing
involved with Save the Children.
initiative, which makes 3D-printed
exclusively RJC CoC (Responsible
during our lifetime, primarily due to
Through its custom-designed Save
full face shields for hospital health-
Jewelry Council Chain of Custo-
poaching. Hublot has pledged to
the Children jewelry collection, the
care workers. Under this initiative,
dy)-certified gold, ensuring full
combat this irreversible loss for our
Maison has so far donated nearly
2,200 units of this vital personal pro-
traceability in its supply chain. Going
planet by partnering with Kevin
$100 million, helping more than
tective equipment were delivered to
one step further, more than 97% of
Pietersen and his platform Save
two million children. Through this
the AP-HP hospital system. In addi-
supplies in 2020 also came from
Our Rhino Africa India (SORAI) to
major financial support, Bvlgari’s top
tion, 20% of profits from the Maison’s
recycled sources in accordance
protect endangered rhinos. The
priority is helping ensure a quality
online sales until May 31, 2020 were
with RJC specifications. In 2020, the
Maison’s pledge is embodied in its
education for children around the
donated to Visières de l’espoir.
Maison also rolled out a sourcing
commitment to donate a substantial
world. Its other priority areas are
policy and procedures in line with
proportion of the sales proceeds
empowering young people and
OECD due diligence requirements
from its Big Bang Unico SORAI
helping them access employment,
for responsible supply chains of
directly to Care for Wild to help res-
responding to emergencies, and
minerals from conflict-affected and
cue and rehabilitate orphaned baby
fighting poverty. This year, Bvlgari
high-risk areas. These cover both
rhinos. One hundred people will be
also provided support to the non-
gold and diamonds. In 2020, more
able to participate in Hublot’s initia-
profit in its efforts to fight Covid-19.
than 99% of the diamonds used by
tive by becoming an owner of this
In addition, in the aftermath of the
the Maison came from RJC-certified
timepiece.
suppliers, all of which have been
audited in accordance with OECD
requirements.
Beirut explosions, the Maison
launched its “B for Beirut” initiative,
a large-scale fundraising campaign
to help children affected by the
situation. $400,000 were donated
to help survivors.
At a glance
2020 Review
Strong rebound in China in the second half of the year
Bvlgari was very responsive and quickly capitalized on the strong recovery in China. The
Maison maintained a high pace of jewelry innovation with the successful launches of its
Serpenti Viper, B.Zero1 Rock and Barocko collections. Chaumet inaugurated its new store
at its historic address on Place Vendôme in Paris at the start of 2020 and strengthened its
presence in China. In the watch sector, TAG Heuer celebrated its 160th anniversary with
several limited editions in the Carrera collection and launched the third generation of its
smartwatch in New York.
2021 Outlook
To adapt to an environment whose future and pace of improvement are still uncertain, the
Maisons will continue their management measures while further accentuating the appeal
of their brands. Market developments are being closely monitored and the focus is on
extremely rigorous resource allocation. Production and supply levels will remain strictly
aligned with demand. The Watches and Jewelry brands will receive highly targeted invest-
ments, with a special emphasis on digital, and will continue their programs focused on
distribution quality and productivity. Bvlgari will open an expanded and remodeled store
on Place Vendôme in Paris, as well as new stores in China, Saudi Arabia, the United States
and Russia. TAG Heuer will strengthen its partnership with Porsche and continue the highly
selective development of its retail network (particularly in China) with the implementation
of its new store concept. Chaumet, Hublot and Fred will also expand their store coverage
in China. Chaumet will present its Joséphine & Napoléon exhibition. Lastly, the highlight of
2021 will be the arrival of the prestigious Maison Tiffany, which will substantially bolster the
business group’s standing in a very dynamic, highly promising market segment.
86 • 87
LVMH 2020 . Watches & Jewelry 2 0 2 0 H I G H L I G H T S
Store closures and the suspension of international
A number of digital initiatives were developed.
travel due to the global public health crisis affected
The Maison helped combat the pandemic by donating
the Watches and Jewelry businesses. However,
hand sanitizer to healthcare facilities in Italy, Switzerland
the rebound in China in the second half helped limit
and the United Kingdom, and launched the Bvlgari
the full-year revenue decline to 23% at constant
Virus Free Fund to support Covid-19 vaccine research
consolidation scope and exchange rates. In this
being done by leading teams at Oxford University,
context, the Maisons took measures to reduce costs
Rockefeller University and Lazzaro Spallanzani
and preserve cash while doing their best to spur
Hospital. New designs continued to appear at a rapid
demand and develop alternative distribution methods
pace, with the B.Zero1 Rock collection adding rings,
such as digital channels and direct sales. Watch Week
bracelets, pendants and earrings, reflecting the brand’s
– an event held by Bvlgari, Hublot, TAG Heuer and
bold creativity along with other iconic jewelry models
Zenith in Dubai in January – was an excellent
launched in the Diva, Fiorever and Bvlgari Bvlgari series.
opportunity to present the Maisons’ new collections
High jewelry featured the presentation of the Jannah
to retailers and the media.
Heavily affected by the market downturn starting
in mid-March, Bvlgari quickly capitalized on the
recovery in China starting in the second quarter.
Flower collection in Abu Dhabi and the bold and
colorful new Barocko line, reflecting the precious
link between the Maison, the city of Rome and
the baroque style. Sales held in Beijing and Shanghai
Hublot, Big Bang Integral King Gold
Bvlgari, Serpenti Viper
88 • 89
LVMH 2020 . Watches & Jewelry Chaumet, Perspectives high jewelry collection
confirmed the design’s major success. The Serpenti
collection. The end-of-year sale of a 1969 Heuer Monaco
Seduttori Tourbillon, Octo Répétition Minutes and
model worn by Steve McQueen fetched the highest
the new Bvlgari Aluminium watch designs sparked
auction price ever recorded by the Maison. The network
a keen interest. As a leading patron, the Maison
of directly operated stores was expanded in parallel
contributed to the restoration of 96 Greek and Roman
with its presence in digital channels, which is being
marble statues belonging to the Fondazione Torlonia.
actively developed. TAG Heuer’s team of brand
A new global marketing campaign was launched,
ambassadors and its sports contracts have helped
featuring Zendaya, Naomi Watts, Kris Wu and Lily
reinforce brand awareness among target customers
Aldridge.
TAG Heuer showed good resilience thanks to its solid
positioning with local customer bases in its main
and strengthen its social media presence. 2020 saw
TAG Heuer and Porsche join forces in a number of
collaborations that will be revealed over the course
markets. In March, the third generation of its smartwatch
of 2021. Together with Hublot and Zenith, TAG Heuer
was launched in New York. Its performance, innovative
showed its support in the fight against the pandemic
materials, wide range of features and elegance ensured
this product’s success, rounded out by a Golf version
that was well received by connoisseurs. The Maison’s
by donating protective face masks to Swiss hospitals.
Hublot’s new additions included the Big Bang Integral,
for the first time featuring an integrated metal bracelet,
flagship lines were enhanced with the new Carrera
and the Spirit of Big Bang Meca-10, whose manufacture
chronographs, additions to the Aquaracer and Formula 1
movement offering a 10-day power reserve was adapted
collections, and new versions in the iconic Monaco line.
to the “barrel” design. The marketing launch of the Big
To celebrate its 160th anniversary, the Maison offered
Bang e digital model was accompanied by the addition
a number of special limited editions in the Carrera
of an e-commerce function to the hublot.com website.
TAG Heuer Carrera
90 • 91
LVMH 2020 . Watches & Jewelry Innovative new models such as the Big Bang Millennial
partnerships in the realms of soccer, automobiles
Pink and the Big Bang MP-11 Red Magic reflected
and golf with current World Number 1 Dustin Johnson.
the Maison’s dynamism. After several previous
For the 2020/2021 season, Hublot became the official
collaborations on different models, Hublot and Berluti
timekeeper for the English Premier League, the most
pooled their talent for the first time on the iconic
Big Bang Unico chronograph. In Japan, which is now
the brand’s number-one market, a store was opened
popular soccer league in the world.
Zenith launched its Time To Reach Your Star marketing
campaign and a new website offering online sales.
in the Hublot Tower in Tokyo’s Ginza district. To celebrate
The Maison enriched its collections with the Defy
Hublot’s 40th anniversary, the new #timetoreflect
Midnight women’s model, as well as the new Elite and
campaign was launched, chronicling the origins
the Chronomaster Revival, which celebrates its long
of its iconic collections, all its ambassadors who have
tradition of watchmaking. A new store was opened
become loyal partners, and the Maison’s high-level
in Tokyo’s Ginza district.
Zenith Chronomaster Revival Shadow
Chaumet reopened its Place Vendôme location,
unveiling a meticulously restored space, true to the
and Harmony series performing especially well. The
Perspectives high jewelry collection was presented
spirit of the Maison. The new workshops showcase
in Monaco and China. In other regions, initiatives
the expertise and artistry of its jewelers. To mark
the occasion, the Légende de Chaumet collection
of 29 medallions was presented, along with Trésors
were taken to boost direct and remote sales.
Fred expanded its Force 10 line with the creation of
Color Crush and launched Chance Infinie, an original,
d’Ailleurs, a sparkling combination of gemstones,
seductive capsule collection. The Maison ramped up
colors and textures in 16 original high jewelry rings.
its development in China and expanded its digital
After a challenging first quarter, the Maison regained
presence. It showed its commitment to the fight
strong momentum in China, spurred by the launch
against the pandemic by participating in the Visières
of a WeChat site offering a wide range of products,
de l’Espoir program, which donated face shields
with pendants in the Jeux de Liens Mother-of-Pearl
to healthcare providers.
Chaumet, Joséphine Aigrette head ornament.
92 • 93
LVMH 2020 . Watches & Jewelry Sephora store by the Opéra Garnier in Paris.
LVMH
Selec t ive
Reta i l i n g
2020
Le Bon Marché Rive Gauche, ame nochi hana exhibition by Nendo.
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
With locations all around the world, our Selective Retailing Maisons make sure
that customers are the number-one priority for their strategies and their staff.
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 over half a century, Sephora has been revolutionizing the beauty industry,
elevating the shopping experience into a moment of pure pleasure and free-
dom, developing new in-store services and hunting out rare finds to add to its
unique range of brands and products. Combining the best of in-store and
online shopping, Sephora’s omnichannel beauty experience offers an interac-
tive, personalized, seamless customer journey. Le Bon Marché is a department
store like no other: striking architecture enhanced by tasteful updates; an
exclusive, elegant selection of products; and an expansive 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,
also 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 luxury 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, to
be followed by Paris in 2021. DFS will continue its expansion in the Asia-Pacific
region, in particular in China on the island of Hainan.
2020 REVENUE BY REGION
(in %)
Other
markets
15%
Asia
(excl. Jap an)
27%
Jap an
1%
France
13%
Europe
(excl. France)
9%
United States
35%
Revenue
€10, 1 5 5 m
–30% (1)
Prof it f rom recur ring
op erations
€(203) m
Number
of stores
2 ,07 2
+3%
Operating
investments
€4 10 m
–38%
(1) Organic change 2020/2019.
Major s t r ateg ic
pr ior it ies
Maintain Sephora’s innovative
momentum in stores and online.
Continue to cultivate a creative,
exclusive offering at Le Bon Marché
and La Grande Épicerie de Paris.
Continue the expansion of DFS
and develop digital initiatives
to build customer loyalty during
their travel experiences.
96 • 97
LVMH 2020 . Selective Retailing O U R M A I S O N S T A K E A C T I O N
The changing world
of beauty at Sephora
Sephora is committed to sustaina-
ble, inclusive and innovative beauty
La Grande Épicerie
de Paris suppor ts
its suppliers during
the lockdowns
Sephora reaffirms
its commitment
to combating
domestic violence
in the United States
Positive social
and environmental
impacts through
Sephora Stands
with its new “Good For” selection
Thanks to its status as an essential
In 2020, Sephora continued to
available at its stores. Products are
business, La Grande Épicerie de
In 2017, after the death of two of its
strengthen its “Sephora Stands”
easily identifiable thanks to tags
Paris was able to stay open, day in
employees, Sephora North America
CSR program developed in the
corresponding to specific criteria:
day out, throughout the lockdowns
made a commitment to combat the
Americas, Europe, the Middle East
– Good For You: Natural formulas
that were brought into force in
scourge of domestic violence. A year
and Asia. Its aim is to generate
with at least 90% naturally sourced
France. But this would never have
later, this commitment gave rise to
positive social and environmental
ingredients.
been possible without the commit-
Sephora Cares, part of its broader
impacts on Sephora’s employees,
– Good For a Better Planet: Sustain-
ment and professionalism of the
Sephora Stands program, which cov-
communities and the planet. It has
ably designed packaging and pack-
store’s employees.
ers all the Maison’s undertakings in
three key priorities, including giving
aging produced using sustainable
The retailer managed to maintain
the field of social and environmental
back and promoting inclusion.
raw materials.
the orders placed at its two Paris-
responsibility. Sephora Cares takes
Sephora has forged ties with more
– Good For Vegan: Vegan-friendly
based stores, Rive Gauche and
action on three levels: raising aware-
than 500 local NGOs around the
products with no animal-based
Rive Droite, with its suppliers – often
ness, providing training on how to
world, providing them with financial
ingredients.
small-scale local food producers –
help victims, and offering personal-
support, involving its employees
– Good For Recycling: In addition to
and support them during this par-
ized support for survivors. Amidst the
through volunteering initiatives and
perfume bottles, Sephora stores
ticularly crucial period.
lockdown, where domestic violence
mobilizing customers to round up
now collect skincare and makeup
In addition, to offer some comfort
rates have surged, Sephora has reaf-
purchase amounts as a donation
packaging for recycling or reuse.
during this trying time, 4,000 choc-
firmed the importance of this strong
and buy products that raise funds for
olates were donated to the AP HP
commitment.
hospital system for healthcare
providers.
good causes. Sephora also organ-
izes sales of fundraising products,
the proceeds of which are donated
to partner nonprofits.
At a glance
2020 Review
Good resilience at Sephora and strong impact
of the suspension of international travel on DFS
Sephora demonstrated good resilience during the health crisis, which, nonetheless, lead to the
closure of most of its stores for several months. The commitment and agility of its teams
have enabled an acceleration of online sales, which reached historic levels in all markets,
and the development of services such as Click & Collect and Live Shopping. Sephora has
also strengthened its offering with new skincare and hair products. A new partnership has
been signed with the American retailer Kohl’s, whose stores are expected to accommodate
200 beauty spaces dedicated to Sephora in 2021. DFS saw a significant decline in its activity
in most destinations due to the total suspension of international travel. While Hong Kong
continues to feel the impact of the pandemic strongly, Macau saw improved trends in the
latter part of the year. New services are being developed for its local customers and online
sales have strengthened.
2021 Outlook
In 2021, Sephora will accelerate its expansion in key markets, particularly by expanding its
physical and digital footprint in China and North America. The strong online momentum
will continue in all markets. A new shop-in-shop partnership in the US with the iconic
retailer Kohl’s will enable the brand to open 200 exclusive prestige beauty points of sale in
2021. Sephora will continue to delight consumers through exceptional product offer, with
its selected brand partners and own brand, as well as excellence of service and advice
delivered by expert teams and the best omnichannel experience. The Maison will accelerate
its synergies between its physical store network and digital presence with enhanced
services and experiences for the client. Corporate Social Responsibility will continue to be
a major priority for Sephora, with a very strong focus on clean products, community impact,
diversity and inclusion. DFS is expected to benefit from higher tourist numbers in Macao
in the first half of the year. For the other destinations that are still closed, the improvement
in the public health situation and forecasts on the resumption of air traffic will be closely
monitored to effectively prepare for the reopening of stores, in connection with the launch
of vaccination programs approved by local authorities. DFS will continue its omnichannel
transformation and maintain its expansion plans in the Asia-Pacific region and in China, on
the island of Hainan in particular. Postponed due to the pandemic, the grand opening of
La Samaritaine in Paris will take place in 2021. Le Bon Marché will rely more than ever on its
excellent customer service, its highly creative and exclusive offering, and its unique program of
events. Resolutely committed to returning to normal and welcoming back in-store customers,
Le Bon Marché will continue to cultivate its distinction and its unique positioning as a
trendsetting store and a venue for art and culture. La Grande Épicerie de Paris will continue
its initiatives to enhance its appeal and build customer loyalty on both sides of the Seine.
98 • 99
LVMH 2020 . Selective Retailing 2 0 2 0 H I G H L I G H T S
The Covid-19 pandemic slowed revenue sharply
of its teams, Sephora accelerated its online sales,
in Selective Retailing for 2020, spurring the Maisons
breaking all-time online sales records in all regions.
to take the necessary measures to adapt to the situation
To enhance client experience, Sephora accelerated
and expand their digital offering. With the improvement
best practices like Click & Collect, Call & Collect,
in the global health situation, they welcomed customers
new apps and livestream beauty advice, and set up
back to their stores with the unwavering desire
partnerships with recognized third parties to offer
to offer them the best experience yet, while ensuring
services such as payment deferral and same-day
their safety and that of their employees.
Sephora showed strong resilience in a retail environment
heavily impacted by the global health crisis that led
delivery. Sephora continued to gain market share
in its key regions and confirmed its leadership as
the world’s most loved beauty community. This was
to the closure of more than 90% of its stores worldwide
illustrated in mega-events like China’s Virtual Sephora
for more than two months in the first half of the year,
Day and the “11/11” day, when Sephora connected
and then a second wave of closures in Europe in the
with more than one million people on social media.
fourth quarter. Thanks to the commitment and agility
Importantly, Sephora put great emphasis on
Sephora store by the Opéra Garnier in Paris.
reopening stores with best-in-class health and safety
new Employee Value Proposition and strengthened
protocols for its clients and employees. Furthermore,
its commitment to the environment through product
Sephora continued to expand its long-term “Sephora
innovation, with the launch of the “Good For” label
Cares” program devoted notably to combating domestic
in Europe and Clean@Sephora in North America.
violence in the United States, and the employment
In an unprecedented context of suspended international
of people with disabilities, notably in its distribution
centers. Sephora continued to build new and exclusive
brands, and accelerated its growth in skincare and
travel and months-long store closures at airports
and downtown shopping areas, DFS was particularly
affected by the public health crisis and its economic
hair care categories, including the continued success
consequences. Placing top priority on the health and
of the “Good for skin.you.all” skincare line. The brand
safety of its customers and staff, starting in January
was reinforced with the launch in Europe and the Middle
the Maison deployed a wide range of resources
East of the corporate communication campaign “The
to inform and protect them and adapt employees’
Unlimited Power of Beauty” and the opening of a new
working hours. Programs were also launched to
Paris Opéra flagship store. Sephora also launched its
support local communities, aimed at donating food
La Grande Épicerie de Paris
100 • 101
LVMH 2020 . Selective Retailing and protective equipment to the most at-risk
decision by various countries and authorities in
individuals. Several stores have begun gradually
the markets it serves to ban cruises and the opening
reopening with strict safety measures, as the local
of national ports. While closely monitoring
public health situation improves. DFS’s two main
developments in each country that could lead
markets were affected to varying degrees during
to the possible resumption of operations, the Maison’s
this trying period: Hong Kong, which was already
teams reinforced their digital distribution channel,
hampered by the drop in tourism in 2019, was much
implemented strict new health and safety guidelines
more heavily hit by the pandemic; in Macao, on
in stores, and enriched their offering with a range
the other hand, the closure of DFS’s stores only
of innovative products tailored to their specific cruise
lasted a few weeks, and there was an improvement
in business activity at the end of the year with
the return of travelers from mainland China. In Venice,
clientele.
For Le Bon Marché, 2020 was a truly unprecedented
year, closed for nearly three months due to the public
the T Fondaco dei Tedeschi showcased local Italian
health situation: first from March 16 to May 11, then from
craftsmanship when it reopened in July. The Maison
October 30 to November 27. Despite these closure
resolutely undertook a series of cost-cutting measures
periods, the department store on Paris’ left bank
and, in order to continue to serve its customers,
maintained close ties with its customers by scaling up
concentrated on developing new distribution
mail-order sales, launching an e-commerce site
channels for its local clientele and ramping up its
for Christmas shopping and kicking off a holiday
online service offering.
Starboard Cruise Services gradually suspended
its activities during the first quarter, following the
edition of its eclectic OFF series of talks, tutorials
and concerts filmed in the store and shared on social
media. The year was marked by the carte blanche
T Fondaco dei Tedeschi, DFS, Venice.
given to Japanese design studio Nendo and its
upcycling stand, and more. Thanks to its highly
founder Oki Sato – set to music in a special evening
committed staff, the two sites of La Grande Épicerie
concert performed by a philharmonic orchestra right
de Paris continued to welcome their customers
in the store – and the cheerful, humorous back-to-
without interruption and to support their suppliers,
school exhibition Once Upon a Time in Belgium.
particularly small-scale producers. The Rive Droite
New permanent and pop-up spaces also emerged,
location in particular saw strong growth. To offer some
for a customer experience focused on service and
comfort during this trying time, 4,000 chocolates
sensation: Octobre Rose (Pink October), l’Atelier
were donated to the AP-HP hospital system
Maquillage (the Makeup Workshop), la Maison du
for healthcare providers.
Bien-Être (the House of Well-Being), Atelier Notify’s
Sephora store in Shanghai.
102 • 103
LVMH 2020 . Selective Retailing E X P L O R E
T H E W O R L D
O F O U R
M A I S O N S
108
109
110
112
115
116
118
121
124
126
128
130
131
132
134
137
138
140
141
142
144
147
Veuve Clicquot
Yayoi Kusama revisits La Grande Dame
TAG Heuer
Watchmaking craftsmanship + high-tech
Dior
A virtuoso’s stopover in Shanghai
Louis Vuitton
Taking the Men’s show on the road
Louis Vuitton
Sewelô and Sethunya, rare mega-diamonds
Guerlain
Protecting a natural treasure: Bees
Dior
Enchantment in Lecce
Louis Vuitton
A hybrid collection unveiled at La Samaritaine
Parfums Christian Dior
The Maison goes back to its Provençal roots
Loewe
Presenting collections in a completely new way
Hennessy
An explosion of color above the Charente River
RIMOWA
The new must-have
Fendi
Listening to the soul of the universe
Belmond
Dream destinations
Celine
20 in 2020
Sephora
Digital technology, prestige and emotion
Chaumet
Splendor restored at 12 Vendôme
Berluti
Penny loafers with Monnaie de Paris
Eminente
A new rum is born
Fendi
“Hand in Hand”: celebrating regional craftsmanship
Bvlgari
Barocko, a breathtaking tribute
Loro Piana
Vicuña: Queen of the Andes
106 • 107
LVMH 2020 . Explore the world of our Maisons
Reims - France
V E U V E C L I C Q U O T
Yayoi Ku s a m a rev i s it s
La Gr a nde Da me
As 2020 drew to a close, iconic Japanese artist Yayoi
their destinies are remarkably similar. Both Yayoi Kusama
Kusama unveiled an exceptional work of art to celebrate
and Madame Clicquot were born into wealthy families,
Veuve Clicquot’s latest vintage: La Grande Dame 2012.
faced rigid 19th and 20th century class-bound mental-
It is not the first time these two exceptional women
ities, pushed boundaries and broke with tradition. Both
have been brought together. For a charity auction in
had the same fierce desire for independence.
Tokyo in 2006, Yayoi Kusama gave new life to an original
portrait of Madame Clicquot using her famous polka
The Japanese artist revisited the bottle and box design
for the La Grande Dame 2012 vintage with her signature
dot pattern. The dialogue continues between the House
polka dot and floral motifs. The result is an exceptional
and the artist, reaching a new and inspiring milestone.
reinterpretation and a stunning tribute to “La Grande
Though more than 150 years separate the two women,
Dame of Champagne”.
New York - United States
T A G H E U E R
Watc h m a k i n g c r a f t s m a n s h ip
+ h igh-tec h
New York, March 12, 2020: TAG Heuer unveils its third-
generation luxury smartwatch. The Maison, which pio-
neered the luxury connected watch when it launched its
first smartwatch in 2015, is now accelerating its leadership
in the category with this new collection. The TAG Heuer
Connected is a unique combination of the refinement
and elegance of a chronograph-inspired timepiece with
a state-of-the-art digital experience. It is both a multi-
functional timepiece – its case is modelled after the
TAG Heuer Carrera chronographs – and a truly immersive
experience. As part of a dedicated digital ecosystem, it
opens up endless possibilities in terms of innovation,
allowing optimal fitness tracking for several sports
including golf and running. This exceptional timepiece
blends the finest watchmaking tradition with state-of-
the-art technology.
108 • 109
LVMH 2020 . Explore the world of our Maisons D I O R
A v i r t uoso’s s topover
i n Sh a n gh a i
After showing in Paris and London, the exhibition
Christian Dior: Designer of Dreams stopped over in
Shanghai, reinventing itself with a different narrative and
exhibit design. The Dior boutique at 30 Avenue Montaigne,
weaves its magic as soon as visitors enter, spurring them
on to explore 14 themed universes devoted to Dior’s
hallmarks and passion for global cultures. The exhibi-
tion features flamboyant pieces designed by the
Maison’s founder-couturier and his successors. They are
set off by a striking selection of photos, including some
by Annie Leibovitz, Steven Meisel and Leslie Zhang,
which highlight the endless diversity of this rich legacy.
In the vitrines, miniature silhouettes in a kaleidoscope
of blues to yellows and reds to pinks offer a captivating
display of color. This exceptional exhibition takes visitors
on a journey into the House of Dior’s prodigious world
and breathtaking dreams.
Shanghai - China
110 • 111
LVMH 2020 . Explore the world of our Maisons Louis Vuitton, Men’s Spring/Summer 2021 traveling collection, Tokyo.
Paris - Tokyo - Shanghai - Miami
L O U I S V U I T T O N
Ta k i n g t he Men’s s how
on t he road
Louis Vuitton took its Spring/Summer 2021 Men’s
to “embrace” Louis Vuitton’s global community, creating
collection on an international tour, presenting it at
an inclusive conversation between the Maison and its
events in Paris, Shanghai, Tokyo and Miami. This new
roving show format – unveiled gradually, a chapter per
audiences and transcending the traditional rules of
fashion and seasonality. Dubbed “Message in a Bottle”,
port of call – reveals how strongly Virgil Abloh, the
the collection also focuses on upcycling, with new looks
Maison’s Artistic Director for Menswear, feels about
made from existing materials, and repeated looks from
diversity, inclusion and unity. The designer uses the trip
other collections.
L O U I S V U I T T O N
S ewelô a nd S et hu ny a ,
r a re meg a- d i a mond s
In February 2020, an astonishing 549-carat rough
gem was uncovered by the Maison in collaboration with
diamond was unearthed at Botswana’s Karowe Mine.
Karowe mine-owner Lucara, and diamond merchant HB
The find came less than a year after the historic discov-
Antwerp. Each will play a role in transforming the rough
ery of Sewelô, the rough diamond that weighed in at
stone into a one-of-a-kind jewel for Louis Vuitton’s cus-
1,758 carats. The sumptuous new rock is of exceptional
tomers. This collaboration reflects two of the Maison’s
purity, shine and color. In a subtle reference to Louis
core values – adventure and discovery – and chronicles the
Vuitton’s iconic Monogram, it has been named Sethunya,
diamond’s journey from its extraction at the Karowe Mine,
which means flower in the Setswana language. Like
through the expert hands of diamond cutters in Antwerp,
Sewelô at the beginning of the year, this second rare
to Louis Vuitton’s high jewelry workshop in Paris.
Botswana
114 • 115
LVMH 2020 . Explore the world of our Maisons G U E R L A I N
Protec t i n g a n at u r a l
t rea s u re: B ees
Drawing its inspiration from the natural world, Guerlain
has placed nature conservation at the heart of its activ-
ities for over 13 years now. The Maison is literally buzzing
with initiatives to protect one of its most precious
treasures: Bees. Since alighting on the Eau de Cologne
Impériale bottle designed for Empress Eugénie in 1853,
Bees – which symbolize Guerlain – have soared from one
creation to the next. And the need to protect them is a
starkly self-evident responsibility. Guerlain has created
several meaningful partnerships to protect this sentry of
the environment. The Maison has lent its ongoing sup-
port to research efforts at the Association Conservatoire
de l’Abeille Noire Bretonne on the Island of Ushant
since 2011 and, since 2015, has also helped the French
Apidology Observatory (OFA) promote the singularly
invaluable occupation of beekeeper. In 2020, it launched
a collaboration with the UNESCO-MAB program and the
OFA, which will train women beekeepers and measure
the benefits of pollination in biosphere reserves. It also
teamed up with the GoodPlanet Foundation in 2020 to
raise awareness among young people of the importance
of protecting bees.
Ouessant - France
116 • 117
LVMH 2020 . Explore the world of our Maisons Dior, 2021 Cruise show, Lecce.
Lecce - Italy
D I O R
Enc h a nt ment i n Lecce
Set in Lecce’s emblematic Piazza del Duomo, the 2021
installations this region of Italy is famed for, reinter-
Croisière fashion show on July 22, 2020 was a magically
preted for the occasion by Marinella Senatore. The show
poetic spectacle. Its captivating décor was the fruit
of a very special collaboration between the worlds of
was a collaborative effort, blending Dior’s legacy with the
traditions and crafts of Puglia, a region dear to Maria
fashion, traditional craftsmanship and engaged con-
Grazia Chiuri’s heart. She joined forces with several
temporary art. The models’ silhouettes lit up under the
local artists to create the fashion show: a real declara-
mesmerizing lights of the Luminarie, the fairytale light
tion of love to this region and its traditions.
L O U I S V U I T T O N
A hybr id col lec t ion u nvei led
at La S a m a r it a i ne
Louis Vuitton chose Paris’ iconic landmark La Samaritaine
as the venue for its Women’s Spring/Summer 2021 run-
way show. This season, the Maison’s Creative Director
of Womenswear, Nicolas Ghesquière, ventured into a
territory where gender is fluid and creative possibilities
are endless. The resulting collection is at once energetic,
bold, and neutral.
Paris - France
120 • 121
LVMH 2020 . Explore the world of our Maisons Louis Vuitton, Women’s Spring/Summer 2021 Show, La Samaritaine.
Grasse - France
P A R F U M S C H R I S T I A N D I O R
The Ma i s on goes b ac k
to it s Provenç a l root s
Centifolia Rose, Jasmine Grandiflorum, Neroli Pays and
Tuberose… are the evocative names of the exceptional
flowers grown in Grasse, Southern France, that make up
the radiant heart of Dior’s perfumes. The Maison formed
its first exclusive partnership with perfume flower farmer
Carole Biancalana of the Domaine de Manon in 2006.
Other partnerships ensued with the young generation
of growers who followed in her footsteps. Thanks to
these enduring ties, Parfums Dior has played a key role
in redynamising this terroir, and has also gone back to
its own Provençal roots in the Château de La Colle Noire
and the Bastide des Fontaines Parfumées where the Dior
fragrances are created. They include the new J’adore
Eau de Parfum Infinissime by François Demachy, which
features the Grasse Tuberose as its key ingredient.
Through its exclusive partnerships with flower farms,
Dior reintroduced this legendary flower, which had dis-
appeared from the region because it was so costly and
difficult to cultivate. The Maison takes quality to the
highest level, choosing the lengthy, painstaking arti-
sanal technique of enfleurage to capture the flower’s
sensual notes as faithfully as possible. It is through this
age-old extraction procedure, which is only used for
the Tuberose in Grasse, that it is able to obtain the full
intensity of the precious fragrance that unfolds in the
bouquet of J’adore Eau de Parfum Infinissime.
124 • 125
LVMH 2020 . Explore the world of our Maisons L O E W E
Pres ent i n g col lec t ion s
i n a completely new w ay
This year Loewe’s Creative Director Jonathan Anderson
presented in a box containing a set of elements to be
redefined the possibilities of what a runway show could
assembled in life-size on a wall. These elements
be: using the restrictions of Covid-19 as his framework,
included posters of the looks and accessories plus a
he pioneered the Show-in-a-Box concept. This format
set of tools to apply wallpaper designed by artist
invited the recipients to become part of the show
Anthea Hamilton. Magnified in all its theatricality, the
experience, delighting all who received it and many
collection itself was described by Anderson as a story
more who experienced it online. The Women’s SS21
of dramatic silhouettes exploring the skilled craft of
collection followed this format as a Show-on-the-Wall,
pattern making.
Online - All over the world
Cognac - France
H E N N E S S Y
A n ex plos ion of color
ab ove t he Ch a rente R iver
World-renowned Chinese artist Cai Guo-Qiang staged
an exceptional daytime fireworks show from the
Hennessy quays in Cognac to celebrate the universal
values of hope, perseverance, and optimism. Inspired
by Hennessy’s rich history, Cai Guo-Qiang composed
an ephemeral artistic masterpiece that was performed
and live-streamed worldwide on September 25, 2020.
The spectacle, which he designed like a play in three
acts, was ablaze with drama, magic, color, and emotion,
as multi-colored fireworks were launched from oak
barrels floating on the Charente River. Only nontoxic,
low-smoke, CE-certified materials were used, reflecting
both the artist’s and the Maison’s commitment to the
environment. This landmark artistic event coincided
with Hennessy X.O’s 150th anniversary and heralded
a new chapter in the iconic blend’s history.
128 • 129
LVMH 2020 . Explore the world of our Maisons Cologne - Germany
R I M O W A
The new mu s t-h ave
RIMOWA’s brand-new RIMOWA Personal collection
polycarbonate, this unisex, hard-shell cross-body hand-
was unveiled to mark the twentieth anniversary of its
bag is just the right size for everyday essentials. With
very first polycarbonate suitcase – an innovation that
its detachable, adjustable leather strap, it can be worn
continues to take the industry by storm. Available in
on the shoulder or carried like a clutch. Great care has
the latest polycarbonate Essential collection colors, the
RIMOWA Personal collection signals a shift from travel
gone into every detail, from its straps and leather lining
to its metal features in silver or gunmetal. The launch of
into lifestyle and was first unveiled on the Dior Men’s
the RIMOWA Personal collection heralds an unprece-
Spring/Summer 2020 runway. Made in Germany and
dented phase for this product and its addition to the
crafted for the first time in ultra-light, dent-resistant
Maison’s core range of travel and everyday accessories.
F E N D I
Li s ten i n g to t he s ou l
of t he u n ivers e
Fendi took its Anima Mundi (Soul of the Universe) con-
cert series to Rome for a unique tribute to the Maison’s
roots, to Italian excellence, and to the profound sense
of togetherness inspired by the philosophical concept
of the “soul of the universe”. At the Palazzo della Civiltà
Italiana, the Maison’s headquarters in the Eternal City,
solo violinist Anna Tifu, accompanied by the symphonic
orchestra of the Accademia Nazionale di Santa Cecilia,
performed the three movements of Vivaldi’s Four Seasons
“Summer” concerto.
Rome - Italy
130 • 131
LVMH 2020 . Explore the world of our Maisons Cap Juluca - Anguilla
B E L M O N D
Drea m des t i n at ion s
Since the acquisition of Hotel Cipriani in Venice 45 years
ago, Belmond has been a pioneer in luxury travel, offering
one-of-a-kind experiences in some of the world’s most
inspiring locations. Its portfolio extends across 24 coun-
tries with 46 remarkable properties spanning hotels,
trains, boats and safaris. Since joining the LVMH Group
in 2019, Belmond has further reinforced its position as the
world’s most desirable luxury travel brand. From 2020,
the Maison has continued to perpetuate the legendary
art of travel with its renewed long-term strategy to safe-
guard its precious assets for future generations. Despite
a challenging year that saw travel come to a halt and
temporary closures of its properties, Belmond forged
ahead with sensitive restoration projects of the Grand
Suites aboard the iconic Venice Simplon-Orient-Express
and a major renovation of Splendido Mare in Portofino.
Around the world, its properties joined forces with
local charities to help communities prevent the spread
of the virus. Determined to keep travel dreams alive,
Belmond turned its digital platforms to provide an ave-
nue of escapism, offering at-home virtual entertainment
such as concerts, culinary workshops and meditation
classes. With an eye on the future, the Maison continued
to recognize its responsibility to nurture the creative talent
and specialist skills on which its industry depends, and was
once again proud to support New Designers, London’s
largest graduate design show. Belmond awarded two
young graduates with a unique opportunity to design
and produce a bespoke product for its Afloat in France
that is due to complete the renovation in 2021.
132 • 133
LVMH 2020 . Explore the world of our Maisons C E L I N E
20 i n 2020
Since his arrival at the Maison, Hedi Slimane has reinter-
inspiration: 20 in 2020. Slimane sought to evoke how
preted Celine’s wardrobe and signature looks season
the look and feel of fashion have evolved among
after season, distilling his vision of an intrinsically and cul-
today’s youth faced with an uncertain future: the urge
turally French fashion house, and revisiting the ineffable
and the desire to seize the day, to make one’s mark
spirit of Parisian couture.
against all odds, and to witness the emergence of new
To present Celine’s Summer 2021 Women’s collection,
codes. Celine’s hallmarks were transposed into a new
the Maison’s Artistic, Creative and Image Director
visual language; a new attitude; a nonchalant, sporty
chose to hold the show outside, with models walking
look infused with an athletic aesthetic.
around the Louis II Stadium in Monaco, by the sea. The
Monaco
Online - All over the world
S E P H O R A
Dig it a l tec h nolog y,
pres t ige a nd emot ion
Across the world, Sephora strives to offer its customers
of today’s customers, the Maison is forging partner-
a seamless, enriched omnichannel journey. It actively
ships with logistics and last-mile specialists so it can
seeks to provide the full emotion-led, relationship- and
offer same-day home deliveries. In China, Sephora is at
advice-based experience that has made its in-store
the forefront of the digital ecosystem, trailblazing the
reputation. During the first Spring lockdown, which
omnichannel experience of the future. In April 2020,
forced it to close most of its stores, the Maison innovated
by offering customers live video consultations with its
Sephora China notably launched Sephora Virtual Day,
an exclusive digital event where more than a million
beauty advisors. This initiative has been so successful it
customers could remotely discover new products by
is now being tested in several countries for long-term
43 global brands. Step by step, the Maison continues to
roll-out. To meet the increasingly sophisticated needs
shape the beauty experience of tomorrow...
136 • 137
LVMH 2020 . Explore the world of our Maisons C H A U M E T
Splendor res tored
at 1 2 Vendôme
Chaumet reopened its recently refurbished, historic
tography lab – to record each creation. This historic
hôtel particulier in central Paris to celebrate 240 years
address is still the Maison’s beating heart, and is now
of youth and modernity, refreshed year after year with
used to welcome customers, preserve and promote
the creation of remarkable jewels.
culture, and foster creativity.
Even before it became known as Chaumet, the Maison
The building has been restored to all its former grandeur
was the first jeweler on Place Vendôme, where it opened
and glory by interior designer Patricia Grosdemange.
a store at No. 15, now the Ritz Paris, in 1812. In 1907,
Within the walls of 12 Vendôme, past and present now
Joseph Chaumet moved his Maison to No. 12, where he
combine to offer visitors a uniquely warm, welcoming
could house the boutique, the workshop and a pho-
experience.
Paris - France
138 • 139
LVMH 2020 . Explore the world of our Maisons Paris - France
B E R L U T I
Pen ny loa fers
w it h Mon n a ie de Pa r i s
The year 2020 coincided with Berluti’s 125th anniver-
striking coins and medals since the year 864, created a
sary and the Maison celebrated by reinterpreting the
one-of-a-kind penny embossed with the Berluti coat of
emblematic Andy moccasins in a collaboration with
arms and slightly curved for a perfect fit.
Monnaie de Paris.
To complete the collection which features four versions
It revisited this iconic shoe, crafted by Olga Berluti for
of the coin, Monnaie de Paris struck a selection of gold
Andy Warhol in 1962, and created authentic penny
loafers – so-called because of the coin English students
and silver coins. They are available in three sizes and
pay tribute to much-cherished Berluti hallmarks: the
used to slip into the half-moon strap across the top of
Scritto motif, the Signature canvas monogram, the
their moccasins. France’s mint, Monnaie de Paris, which
Maison’s seal and its logo, shoemaker’s nails and the
is located on the banks of the River Seine and has been
Andy moccasin footprint.
Cuba - Isla del Cocodrilo
E M I N E N T E
A new r u m i s b or n
Eminente, Moët Hennessy’s new premium rum, hails from
the heart of lush-green Cuba, an island locals call “Isla
del Cocodrilo”, whose unusual shape resembles that of
its native crocodile. Launched in August 2020, Eminente
is a rich and full-bodied rum that draws its inspiration
from 19th-century Cuban sugarcane eaux-de-vie. Its
sublime blend is the expert work of César Martí, Cuba’s
youngest Maestro Ronero, or Rum Master.
140 • 141
LVMH 2020 . Explore the world of our Maisons Venice - Italy
F E N D I
“ Ha nd i n Ha nd ”: celebr at i n g
reg ion a l c r a f t s m a n s h ip
Fendi’s “Hand in Hand” initiative honors the ancestral
skills of Italy’s craftspeople. It kicked off this unprece-
dented partnership with artisans in all the country’s
regions – from Tuscany and Puglia to the island of
Sardinia – by inviting them to reinterpret the iconic
Baguette bag, designed in 1997 by the Maison’s Artistic
Director, Silvia Venturini Fendi.
Through these collaborations, the Maison celebrates
its enduring indebtedness to centuries-old Italian
craftsmanship and helps to promote and preserve
these age-old skills. The Maison explored every corner
of Italy, seeking out the unique creative potential of
each region. In Tuscany, for example, it collaborated
with the Peroni workshop which has been using a
time-honored Florentine technique to manufacture
small leather goods in typical vegetable-tanned leather
since 1956. In Veneto, “Hand in Hand” delved into the
archives of the ancient Jacquard weaving house of Luigi
Bevilacqua. In Umbria, it honored the city of Perugia’s
sumptuous hand-woven fabrics in another collabora-
tion with the Giuditta Brozzetti workshop which has
been reproducing their decorative, historical designs
since 1921.
142 • 143
LVMH 2020 . Explore the world of our Maisons Bvlgari, Barocko high jewelry collection.
Rome - Italy
B V L G A R I
B a roc ko, a breat ht a k i n g
t r ibu te
In Rome, Bvlgari unveiled its Barocko High Jewelry col-
ping pear-shaped rubellite. The result is a stunning cre-
lection, immortalizing the iconoclastic spirit of the
ation of absolute beauty. Lady Arabesque, for its part,
baroque era and the rock attitude of the 1970s. The
captures the unfettered creativity of baroque style with
collection weaves a bold, colorful and treasured bond
its astonishingly intricate design and spectacular com-
between the Maison, the Eternal City and the baroque
style. It revisits Bvlgari’s iconic 1970s sautoir, Lady
bination of signature gemstones. Another necklace in
the collection, the one-of-a-kind Cabochon Exuberance,
Rubellite, giving it a contemporary design by irrever-
is a daring hymn to life with its striking ornamental design
ently combining pearls – the ultimate baroque luxury
inspired by Rome’s Farnese Gardens. Tens of thousands
and a symbol of timeless elegance – with a showstop-
of passionate and creative craftsmanship hours.
Andes mountain range - Peru
L O R O P I A N A
Vicuña: Queen of the Andes
Seen as a sacred creature by the Incas, the vicuña
that respect animal well-being and ancestral traditions.
was once at risk of disappearing forever from its native
Each year, hundreds of people gather on the mountain
highlands of the Andes. Centuries of poaching deci-
plateaus to take part in the Chaccu shearing ritual, which
mated its population from 3 million in pre-Columbian
features traditional dances and chants, carrying on
times to just 5,000 in 1960. This cousin of the alpaca,
centuries of heritage with the utmost respect for this
with its incredibly soft, golden fleece, was saved from
exceptional gift of nature. In 2008, Loro Piana created
extinction thanks to the creation of the first vicuña
the Franco Loro Piana reserve, Peru’s first private nature
reserve by the Peruvian government, followed by con-
reserve, spanning 2,500 hectares, where the vicuña pop-
servation efforts made by Loro Piana in the 1990s.
ulation quadrupled in ten years. The company recently
Leading an international consortium, the Maison built up
pursued a new project in Peru in collaboration with local
a partnership with communities in the Andes and still
workers to build canals and reservoirs to gather rainwater
today benefits from this special relationship in purchasing
during the wettest months of the year, guaranteeing a
the fiber of vicuñas raised and shorn under conditions
better water supply to the animals and their territory.
146 • 147
LVMH 2020 . Explore the world of our Maisons 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. Any shareholder holding at
least one LVMH share which is listed on the Paris Market,
Listed on: Eurolist by Euronext Paris
Stock market capitalization: €257.9 bn as of 12/31/2020
(the largest capitalization on the Paris stock market)
Number of shares: 504,757,339 as of 12/31/2020
Member of indices: CAC 40, Dow Jones Euro
can become a LVMH Shareholders’ Club member.
Stoxx 50, MSCI Europe, FTSE Eurotop 100, Global
LAT EST N EWS A BOU T
OU R M A ISONS
We send Club members several publications, such as the
Annual Report, the Letter to Shareholders and the annual
issue of Apartés, our Club magazine.
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. The Club’s private tours have
been temporarily put on hold due to the current situation,
but in the meantime, the “LVMH Comes to You!” program
offers a number of live virtual visits, available from the
Dow and FTSE4Good.
SHA R EHOLDER
ST RUCT U R E (1)
(November 2020)
French
institutional
investors
7.9%
Individuals
4.8%
Foreign
institutional
investors
39.6%
Arnault
family
group
47.5%
Treasury
stock
0.2%
comfort of your home.
(1) Voting rights: Arnault family group 63.4%; Other 36.6%.
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
AGEN DA
wines and spirits, for delivery in France only, Club members
can purchase discounted subscriptions to Group media
Tuesday, January 26, 2021: 2020 annual revenue and results
April 2021: 2021 first-quarter revenue
publications – Les Echos, Investir and Connaissance des
Thursday, April 15, 2021: Shareholders’ Meeting
Arts – and order priority-access tickets for the Fondation
Thursday, April 22, 2021: Payment of the final dividend for
Louis Vuitton.
fiscal year 2020
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 the
exclusive offer of Wines and Spirits, subscriptions to
the Group’s newspapers and magazines and tickets to
the Fondation Louis Vuitton are available via the Club’s
July 2021: 2021 half-year revenue and results
October 2021: 2021 third-quarter revenue
CON TACTS
Investor and Shareholder Relations
website at www.clublvmh-actionnaires.fr/en. This private
Tel.: +33 (0)1 44 13 27 27
online space, dedicated to Club members, can be
Shareholders’ Club
accessed once they have created their account.
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)
2018
2019
2020
CHANGE IN THE DIVIDEND
(in euros)
2018
2019
2020
High (mid-session)
313.70
419.50
Low (mid-session)
232.50
243.65
Year-end share price
258.20
414.20
Change during the year
(%)
+5%
+60%
Change in the CAC 40 (%)
-11%
+26%
Market capitalization
at Dec. 31 (EUR bn)
130.0
208.0
517.20
278.70
510.90
+23%
–7%
257.9
Gross dividend
6.00
4.80(1)
6.00(2)
Change for the year
+20%
–20%
+25%
Payout ratio
Basic Group share
of net earnings per share
47%
12.64
34%
14.25
64%
9.33
(1) Proposed by LVMH’s Board of Directors at its meeting on April 15, 2020, during
which it 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 with respect to the amount initially
announced on January 28, 2020, and approved at the Shareholders’ Meeting
on June 30, 2020.
(2) To be proposed at the Shareholders’ Meeting on April 15, 2021.
COMPARISON BETWEEN THE LVMH SHARE PRICE AND THE CAC 40 INDEX SINCE JANUARY 2, 2018
(in euros)
525
500
475
450
425
400
375
350
325
300
275
250
225
200
175
150
125
100
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
2018
OSAJ
J
2019
DN
JJMAMFJ
2020
A
DNOS
0
LVMH
CAC 40 rebased
Volume of transactions (right-hand scale)
2020 was a year like no other for stock markets, with the unprecedented public health crisis that struck most countries
around the world. The various lockdown measures adopted by governments led to whole swathes of the economy
being brought to a sudden halt, causing all stock exchanges to plummet in March-April. The rapid implementation
of massive support measures by governments and central banks, followed by the gradual slowdown in the spread
of the virus, nevertheless allowed markets to recover somewhat in the spring. After a wait-and-see period, investors
enthusiastically welcomed the November announcement of vaccines that were found to be effective against the virus,
enabling a substantial rebound. In a calmer market environment, also relieved of the uncertainty surrounding the US
elections, the main indices ended the year with only slight losses, or even gains in some cases.
The CAC 40 and Euro Stoxx 50 indices finished 2020 down 7.14% and 5.14%, respectively. The LVMH closing share price
ended the year up 23%, at €510.90, after having reached a new record high toward the end of the year. LVMH’s market
capitalization was €258 billion as of December 31, making it the largest company on the Paris stock exchange.
150 • 151
LVMH 2020 . 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
2020 REVENUE BY REGION
(in %)
STORES
(number)
4,915 5,003
4,592
Other
markets
11%
Asia
(excl. Japan )
34%
Japan
7%
France
8%
Europe
(excl. France)
16%
United States
24%
REVENUE
(EUR millions)
53,670
46,826
44,651
2018
2019
2020
PROFIT FROM RECURRING OPERATIONS
(EUR millions)
11,504
10,003
8,305
2018
2019
2020
2018
2019
2020
REVENUE BY BUSINESS GROUP
(EUR millions)
PROFIT FROM RECURRING OPERATIONS BY BUSINESS GROUP
(EUR millions)
Wines & Spirits
2020
4,755
Fashion & Leather Goods 21,207
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
Other activities
and eliminations
5,248
3,356
10,155
Change
2020/2019
Organic
change(1)
–15%
–5%
–23%
–24%
–31%
–14%
–3%
–22%
–23%
–30%
(70)
–
–
Wines & Spirits
Fashion & Leather Goods
Perfumes & Cosmetics
Watches & Jewelry
Selective Retailing
Other activities
and eliminations
2020
1,388
7,188
80
302
(203)
(450)
Change
2020/2019
Operating
margin(1)
–20%
–2%
–88%
–59%
–
–
29.2%
33.9%
1 . 5%
9.0%
(2.0%)
–
TOTAL LVMH
44,651
–17%
–16%
TOTAL LVMH
8,305
–28%
18.6%
(1) At comparable structure and exchange rates. For 2020, the currency effect
was -1%, and the structural impact was almost zero.
(1) As % of revenue of each business group.
NET PROFIT, GROUP SHARE
(EUR millions)
7, 171
6, 354
4,702
OPERATING INVESTMENTS
(EUR millions)
3,294
3,038
2,478
2018
2019
2020
2018
2019
2020
FREE CASH FLOW
(EUR millions)
6, 167
6,117
5,452
SIMPLIFIED BALANCE SHEET AS OF 12/31/2020
(EUR billions and % of balance sheet total)
108.7
108.7
63%
N o n - c u r r e n t
a s s e t s
36%
E q u i t y
12% Inv e n t o r i e s
25% O t h e r
c u r r e n t a s s e t s
41%
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
2018
2019
2020
Assets Liabilities
and equity
EQUITY AND RATIO
OF NET FINANCIAL DEBT
TO EQUITY
(EUR millions and %)
38,365
38,829
33,957
16%(1)
16%
11%
2018
2019
2020
(1) Belmond shares deducted from net debt (€274 million).
NET FINANCIAL DEBT(1)
(EUR millions)
6,206
5,487(1)
4,241
2018
2019
2020
Further information can be found in the 2020 Universal Registration Document.
152 • 153
LVMH 2020 . 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 2019
CO2 emissions
in 2020
pro forma(1)
Change(1)
(in %)
2019
2020
pro forma(1)
Change(1)
(in %)
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other
activities
TOTAL
40,893
33,796
113,314
100,759
–17%
–11%
–4%
12,971
7,257
12,501
6,128
–16%
72,643
56,866
–22%
3,340
2,810
–16%
250,418
212,860
–15%(2)
(1) Value and change at constant scope.
(2) Approximately 10% of the reduction was related to the impact of the public
health crisis and store closures.
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other
activities
TOTAL
223,395
214,226
394,620
356,003
93,923
90,419
40,726
35,405
286,142
232,281
21,086
18,319
–4%
–10%
–4%
–13%
–19%
–13%
1,059,892
946,653
–11%(2)
(1) Value and change at constant scope.
(2) Approximately 10% of the reduction was related to the impact of the public
health crisis and store closures. The Wines and Spirits and the Perfumes
and Cosmetics business groups were not affected to the same extent because
they operate fewer stores.
WATER CONSUMPTION BY BUSINESS GROUP
(process requirements in m3)
WEIGHT OF PACKAGING THAT REACHES CUSTOMERS
BY BUSINESS GROUP (in metric tons)
2019
2020
pro forma (1)
Change(1)
(in %)
1,247,673
1,068,162
1,918,215
1,392,806
–14%
–27%
194,720
196,169
+1%(2)
75,955
62,203
306,062
229,211
–18%
–25%
184,408
190,449
+3%(3)
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other
activities
13,375
12,871
2019
181,319
31,115
4,416
6,375
2
2020
pro forma(1)
Change(1)
(in %)
141,224
23,163
3,121
4,541
–22%
–4%
–26%
–29%
–
1
–50%
Wines &
Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
Jewelry
Selective
Retailing
Other
activities
TOTAL
3,927,034
3,139,000
–20%
TOTAL
236,602
184,921
–22%(2)
(1) Value and change at constant scope.
(2) Change related to the installation of new equipment at a site.
(3) Change related to measurement adjustments at a site.
(1) Value and change at constant scope.
(2) Change related to the decline in business activity and the impact of sustainable
packaging design.
BREAKDOWN BY BUSINESS GROUP (as of December 31, 2020)
BREAKDOWN BY REGION (as of December 31, 2020)
Wines & Spirits
Fashion &
Leather Goods
Perfumes &
Cosmetics
Watches &
jewelry
Selective
Retailing
Other activities
2020(1)
7,530
53,002
28,017
9,078
43,741
9,111
As %
of total
%
women(2)
As %
of total
%
women(2)
France
Europe
(excl. France)
United States
Japan
Asia (excl. Japan)
Other markets
2020(1)
32,813
37,693
24,749
7,012
35,382
12,830
38%
67%
82%
59%
83%
38%
71%
TOTAL
150,479
100%
(1) Total permanent and fixed-term headcount.
(2) Under permanent contracts.
22%
25%
16%
5%
23%
9%
64%
71%
75%
73%
76%
67%
71%
TOTAL
150,479
100%
(1) Total permanent and fixed-term headcount.
(2) Under permanent contracts.
BREAKDOWN OF PERSONNEL
BY PROFESSIONAL CATEGORY (as of December 31, 2020)
AVERAGE LENGTH OF SERVICE AND BREAKDOWN
BY LENGTH OF SERVICE (as of December 31, 2020)
As %
of total
%
women(2)
As % of global workforce
2020(1)
32,713
14,575
79,059
24,132
Executives
and managers
Technicians
and supervisors
Administrative
and sales staff
Production
workers
TOTAL
150,479
100%
(1) Total permanent and fixed-term headcount
(2) Under permanent contracts.
64%
66%
79%
57%
71%
Length of service:
Less than 5 years
5 - 9 years
10 - 14 years
15 - 19 years
20 - 24 years
25 - 29 years
30 years and up
TOTAL
Average length of service
58%
19%
10%
5%
4%
2%
2%
100%
7 years
5%
35%
19%
6%
29%
6%
22%
9%
53%
16%
Further information can be found in the 2020 Universal Registration Document.
154 • 155
LVMH 2020 . Performance measures Photographs
Cover, p. 4, 10: Louis Vuitton Malletier, Viviane Sassen – p. 6: Jamel Toppin – p. 12, 15: Jean-François Robert –
p. 13: Tiffany & Co. – p. 17: Laure Sée – p. 18: Dior, Sarah Blais – p. 22: Parfums Christian Dior, Christophe Pelletier – p. 27, 29, 30:
Boby Allin – p. 28: Christian Dior Couture, DR – p. 34, 72, 125: Parfums Christian Dior – p. 38: Fondation Louis Vuitton
© Gehry Partners, LLP and Frank O. Gehry © Iwan Baan 2014 – p. 40: © C2RMF/Alexis Komenda – p. 41: Fondation Louis Vuitton
© 2018 Cindy Sherman @ Courtesy of the artist and Metro Pictures, New York – p. 42, 147: Loro Piana – p. 46: Château d’Yquem,
G. Uféras – p. 48: Hennessy – p. 50, 62, 74, 86, 98: Annabel Briens – p. 52: Dom Pérignon – p. 53: Château d’Esclans – p. 54, 108: Veuve
Clicquot, Yayoi Kusama – p. 55: Ruinart – p. 56: Glenmorangie, DDB 2020 – p. 57: Krug, Zoë Ghertner – p. 58: Louis Vuitton
Malletier, Giovanni Giannoni – p. 60: Dior, Brigitte Niedermair – p. 64: Louis Vuitton, Steven Meisel – p. 65, 131, 142, 143: Fendi – p. 66:
Dior, Adrien Dirand – p. 67, 134-136: Celine, Hedi Slimane – p. 68: Loro Piana, Jamie Hawkesworth – p. 69, 126, 127: Loewe – p. 70:
Parfums Christian Dior, Jérôme Galland – p. 76: Parfums Christian Dior, Florian Joye – p. 77: Guerlain, Koichiro Doi – p. 78: Guerlain,
Florian Joye – p. 79: Parfums Givenchy, Guido Mocafico – p. 80: Maison Francis Kurkdjian – p. 81: Acqua di Parma – p. 82, 89, 146:
Bvlgari – p. 84, 91, 109: TAG Heuer – p. 88: Hublot – p. 90, 138, 139: Chaumet – p. 92: Zenith – p. 93: Chaumet, Fred Meylan –
p. 94, 100: Sephora – p. 96: Le Bon Marché Rive Gauche, Nendo – p. 101: La Grande Épicerie, Laurent Fau – p. 102: DFS – p. 103, 137:
Sephora China – p. 110, 111: Dior, Dirk Weiblen – p. 121: Louis Vuitton Malletier, Alessandro Garofalo – p. 112: Louis Vuitton Malletier –
p. 114: Louis Vuitton Malletier, Xiaoki Ka – p. 115: Louis Vuitton, Philippe Lacombe – p. 116: Guerlain, Pierrick Jégou –
p. 118: Dior, Antonio Maria Fantetti – p. 120: Dior, Lean Lui – p. 122: Louis Vuitton Malletier, Grégoire Vieille – p. 128: Hennessy,
Simon Cassanas_Filmography – p. 130: RIMOWA, Anthony Seklaoui – p. 133: Belmond – p. 140: Berluti – p. 141: Eminente –
p. 144: Bvlgari, Thomas Lohr – Other photographs: LVMH and Group Maisons’ libraries.
This product is made of material from well-managed
FSC® -certified forests and from recycled materials.
LVMH – 22, avenue Montaigne – 75008 Paris – France
Tel.: 33 (0)1 44 13 22 22 – www.lvmh.com
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