Louis Vuitton Moët Hennessy EPA: MC
LVMH (Louis Vuitton Moët Hennessey) is a French Conglomerate with 75 subsidiaries, known as “Maisons,” operating in wine & spirits, fashion & luxury wear, perfume, jewelry, retailing, and other experience-based activities, including hotels and the arts. It is Europe’s largest company, with a peak market capitalization of over $500 billion USD. Since its 52-week high, its stock has fallen more than 40%. It trades on the Euronext Paris exchange under the ticker OTCMKTS: LVMUY. Headquartered in Paris, France, its operations span 81 different countries worldwide with over 6,300 stores. It currently employs more than 215,000 workers worldwide and generated €84.7b ($99.2b USD) in the 2024 fiscal year. Its current market cap as of August 24, 2025, is €245.67b ($287.60b USD), while its peak in Q2 2023 reached over $500b.
As Europe’s largest conglomerate, their expansion and dominance can be largely attributed to the determination for growth by CEO, Bernard Arnault. His aggressive business style continued when he began working with Alan Chevalier, CEO of Moët Hennessy, and Henry Racamier, President of Louis Vuitton, to form the conglomerate LVMH in 1987. Soon after the company’s formation, tense rivalry between the two pre-merger companies began to escalate as LV group attempted to create a blocking minority by aggressively purchasing shares in LVMH to defend against a single entity attempting a hostile takeover. However, these promises soon turned to be futile as it failed to account for internal takeover attempts: Arnault provided 1.6B in 1988 to hold 24% of shares, then 600M for another 13.5% and finally another 500M in January 1989 to control a total of 43.5% of LVMH shares and 35% of the voting rights. Instead of the LV group’s attempt to create the blocking minority, Arnault reached the one-third (⅓) voting rights threshold and thus formed his own blocking minority. Arnault then usurped Henry Racamier of his leadership position in LVMH due to their differences in strategic vision and removed him from the board of directors. Just shortly after his final acquisition of LVMH shares in January 1989, he became the unanimously elected chairman of LVMH’s executive management board.
Today, LVMH is more than 400% bigger than the next conglomerate, Richemont, in terms of revenue figures. Bernard Arnault’s quest for growth and dissatisfaction has created an empire difficult to topple. However, FY 2024 has seen a dip in its revenue figures, particularly due to a decline in sales in China. While other conglomerates suffer a similar slowdown in growth, Hermès’ sales have remained resilient despite overall industry trends. This can largely be attributed to their exclusive business model, which forces clients to purchase entry-level products before introducing them to high-end, status-associated products. Additionally, the Hermes client base consists of more concentrated high-net-worth individuals who are resistant to macroeconomic headwinds. Additionally, its operating margins of 41.4% which is significantly higher than the industry average of 13.4% (10Y average) and LVMH’s 23.1% in 2024.
Can LVMH continue its dominance, or will 2024’s decline in fiscal health mark a shift in power within the luxury goods industry? Click here to learn more about LVMH.
