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Family luxury still turning a profit

LMVH Moet Hennessy Louis Vuitton, the family-controlled luxury products group, yesterday announced revenues of €7.8 billion for the first half of 2009. This figure is a slight increase on the same period for 2008, although it is below predicted revenues.
 
The figures released in the statement are "particularly remarkable given the global economic crisis," according to LMVH chairman, CEO and group founder Bernard Arnault (pictured). "LVMH thus proves its exceptional capability to resist thanks to the strength of its brands, the responsiveness of its organisations and the talent of its teams," he added.
 
The Louis Vuitton brand proved one of the most successful for the group, showing double-digit revenue growth for this period. Arnault said: "Louis Vuitton has had a particularly exceptional first half of the year, probably the best in the luxury universe."
 
The financial statement released yesterday suggests the family is coping with the downturn better than many of its competitors in the luxury industry. "Reassured by the good resilience in the first half of the year, the Group approaches the second half with confidence," said Arnault in summary.

The group, which includes brands such as Dom Perignon, TAG Heluer and Marc Jacobs, began in 1987 after Arnault used his family's money to purchase Christian Dior.

Daughter Delphine joined the company in 2000 and became the first woman on the board in 2003 at the age of 29. She still holds a position in management and is actively involved in the fashion brands, particularly Louis Vuitton. The Arnault family own a majority stake in LVMH through the family's holding company, Groupe Arnault.

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