Bernard Arnault, the chairman and CEO of LVMH, recently delivered the group’s annual results, marking the first time in three years. The presentation took place on January 26 at LVMH’s headquarters in Paris, where Arnault expressed his enthusiasm for announcing record-breaking results for the luxury conglomerate. He highlighted the impressive double-digit growth of the company, which recorded a turnover of over 79.2 billion euros, representing a 23% increase from the previous year. Additionally, LVMH reported a current operating profit of 21 billion euros and a cash flow exceeding 10 billion euros.
Despite challenging macroeconomic and geopolitical conditions, Arnault emphasized LVMH’s continuous market share growth since 2019, attributing this success to the hard work of the teams within LVMH’s various brands. He particularly praised the leaders of Louis Vuitton and Celine, acknowledging their significant accomplishments. Michael Burke, the leader of Louis Vuitton, was commended for surpassing 20 billion euros in sales and maintaining the brand’s desirability through innovation and exceptional creations. Similarly, Hedi Slimane’s creative direction at Celine led to the brand exceeding 2 billion euros in sales.
During the presentation, Arnault was accompanied by Jean Jacques Guiony, LVMH’s financial director, and Antonio Belloni, the group’s deputy general manager. Prominent executives, including Arnault’s children, were also present. Arnault acknowledged recent leadership changes within the group, highlighting the strategic continuity while adopting a different managerial approach.
The executive also expressed admiration for LVMH’s star designers, such as Nicolas Ghesquière at Louis Vuitton, Maria Grazia Chiuri at Dior, and Jonathan Anderson at Loewe. He emphasized the ambition to enhance the desirability of these brands, noting their steady improvement compared to competitors.
While discussing societal views, Arnault focused on LVMH’s environmental contributions and expressed skepticism towards e-commerce and the second-hand market. He prioritized the value of the first-hand experience. Arnault also criticized certain practices in the Chinese market, emphasizing the importance of avoiding parallel exports and preserving the integrity of the brand image.
In conclusion, Arnault displayed confidence in the future, particularly with regard to China’s ongoing positive progress. He highlighted LVMH’s commitment to investment even during challenging times and expressed optimism for the upcoming year.
Jean Jacques Guiony further emphasized the significant marketing investments made in the last quarter of the year, including collaborations with renowned artists like Yayoi Kusama and grand fashion shows held at iconic locations such as the Giza pyramids.
In a surprising turn, Arnault’s positive comments about Patek Philippe sparked rumors of a potential acquisition of the Swiss watch brand by LVMH.
Useful links:
– LVMH Annual and Half-Year Reports
– LVMH Press Release – Annual Report 2021
