The two most visited posts on my blog are College Chic: The Messenger Bag and Louis Vuitton and the Economic Crisis. The first one I can’t do much about. The second one, however, is less about LV’s actually economic performance and more about its image. To benefit those who Google “louis vuitton and the economic crisis” I give you here a more robust analyst report compiled late at night, while doing laundry, by yours truly for LV’s parent company, LVMH. It’s neither comprehensive nor perfect. It’s probably more waxing and idealistic, but you get the point. Ask questions in the comment section, and I’ll be sure to get back to you. LVMH Moet Hennessy Louis Vuitton (LVMH) – as traded on the Paris Stock Exchange (An ADR is available OTC in the US) Price (11/09): Market Cap: Dividend: Yield:
52 Week Hi/Lo:
74.90 EUR 36.7b EUR 1.60 EUR
2.14% 75.89/38.10 EUR
LVMH Moet Hennessy Louis Vuitton is the world’s largest luxury company that, as a conglomerate, has existed since 1987, but, accounting for its numerous entities, can trace its roots to the 16th century. Now based in France and run by CEO Bernard Arnault, the company is divided into five major divisions: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing. Notable brands under the LVMH umbrella include Moet & Chandon, Hennessy, Veuve Clicquot, Louis Vuitton, Givenchy, Guerlain, Sephora, Fendi, Pucci, Marc Jacobs, Thomas Pink and over 50 others. While its holdings are impressive, LVMH’s enormous reach into the global luxury market exposed the company to some of the harshest aspects of the recent global financial crisis. This same reach, however, may be just what helps move the company forward as 2010 comes around the corner. Overall, if one were really to ask the question, “How did LVMH perform during the financial crisis?”, the answer would be, “Fairly well.” LVMH reported revenues of over EUR 17 million in 2008, a 4.3% increase from 2007. (See its...
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