LVMH

LVMH operates through five distinct business segments that together create the world's most comprehensive luxury goods portfolio. In the first half of 2025, the company recorded revenue of €39.8 billion with profit from recurring operations of €9 billion, demonstrating solid performance despite challenging global economic and geopolitical conditions. LVMH employs approximately 186,000 people globally and maintains a portfolio of over 75 prestigious luxury brands serving affluent consumers worldwide.

Fashion & Leather Goods represents LVMH's largest business segment, generating €19.1 billion in H1 2025 revenue. This segment includes iconic brands such as Louis Vuitton, Christian Dior, Fendi, Celine, Givenchy, and Loewe. Despite a 7% decline in organic revenue, the segment maintained very high operating margins, reflecting the enduring strength and pricing power of LVMH's core fashion and leather goods brands. Louis Vuitton continued to demonstrate powerful creativity through continuously reinvented iconic products and unique customer experiences, including "The Louis," a museum-like space in Shanghai designed as a cruise ship that epitomizes the brand's innovative spirit.

Wines & Spirits generated €2.6 billion in H1 2025 revenue, experiencing an 8% decline in organic growth. This segment includes prestigious champagne and spirits brands such as Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, and Hennessy. The segment faced ongoing weak demand for cognac, though champagne showed improvement in trends during the second quarter of 2025. Despite revenue pressure, the wines and spirits brands maintained their premium positioning and continued to invest in product innovation and heritage preservation.

Perfumes & Cosmetics achieved €4.1 billion in H1 2025 revenue, remaining stable on an organic basis. This segment demonstrated remarkable innovation and ongoing selective retail approaches, with successful launches including La Beauté Louis Vuitton, a new creative universe led by Dame Pat McGrath. The cosmetics and perfumes segment benefited from strong brand recognition and continued investment in product development, sustainability initiatives, and digital marketing capabilities.

Watches & Jewelry recorded €5.1 billion in H1 2025 revenue, remaining stable organically. This segment includes prestigious brands such as Tiffany & Co., Bulgari, TAG Heuer, Hublot, and Zenith. The segment benefited from the success of iconic lines and Tiffany & Co.'s renovated stores, which enhanced customer experience and brand presentation. The watches and jewelry brands maintained their focus on craftsmanship excellence, heritage preservation, and innovation in design and technology.

Selective Retailing generated €8.6 billion in H1 2025 revenue, achieving 2% organic growth. This segment includes Sephora, DFS (duty-free retail), and Le Bon Marché department store. Sephora continued to achieve growth in both revenue and profit, demonstrating strong performance in the competitive beauty retail market. The selective retailing segment benefited from improved local customer demand and effective digital transformation initiatives.

LVMH's corporate structure emphasizes brand-level management maintaining independent identities while benefiting from group resources and expertise. Each brand operates with significant autonomy, preserving its unique heritage and creative direction while accessing LVMH's shared resources in manufacturing, distribution, marketing, and technology. This structure enables brands to maintain authenticity and craftsmanship excellence while leveraging group-level scale and efficiency.

The company invests significantly in brand positioning, digital channels, and customer experience enhancement across all segments. LVMH has embraced digital transformation while maintaining the exclusivity and personal service that define luxury retail. The company's e-commerce platforms, digital marketing initiatives, and customer relationship management systems complement physical retail experiences and enhance brand engagement.

LVMH's supply chain emphasizes craftsmanship quality and heritage production supporting luxury positioning. The company maintains significant manufacturing facilities in France and Italy, preserving traditional artisanal skills and production techniques while investing in modern technology and sustainability practices. This commitment to quality and authenticity underpins LVMH's brand equity and customer trust.

Financial highlights from H1 2025 demonstrate LVMH's resilience and strategic discipline. The company achieved an operating margin of 22.6% and generated operating free cash flow of €4 billion, representing a 29% increase compared to the previous year. Net financial debt decreased by 16% to €10.2 billion, reflecting strong cash generation and prudent financial management.

LVMH was formed on December 23, 1987, through the strategic merger of Moët Hennessy and Louis Vuitton orchestrated by Bernard Arnault, creating the foundation for what would become the world's largest luxury goods conglomerate. Moët Hennessy itself represented a merger of two prestigious French luxury houses: Moët & Chandon, the renowned champagne producer founded in 1743, and Hennessy, the distinguished cognac manufacturer established in 1765. Louis Vuitton, founded in 1854, brought legendary leather goods and trunk manufacturing expertise to the combined entity.

Bernard Arnault's vision for the merged entity was revolutionary in the luxury industry - creating a diversified luxury goods conglomerate that could leverage shared resources, expertise, and market presence across multiple luxury categories. Arnault acquired controlling stakes in both companies and established himself as chairman and CEO, beginning a period of aggressive strategic expansion that would transform the luxury industry landscape.

Throughout the 1990s, LVMH executed an ambitious acquisition strategy that dramatically expanded its brand portfolio across luxury categories. In 1996, LVMH acquired Christian Dior, adding one of the most prestigious French fashion houses to its growing collection. The same year saw the acquisition of Celine, the luxury leather goods and ready-to-wear brand. In 1995, LVMH acquired Givenchy, bringing another iconic French fashion and beauty brand into the portfolio. The acquisition of Fendi in 1999 expanded LVMH's presence in Italian luxury fashion and leather goods.

The early 2000s marked LVMH's emergence as the world's largest luxury goods conglomerate by revenue and market capitalization. The company continued its strategic expansion with acquisitions including Loewe (Spanish luxury leather goods), Kenzo (Japanese-French fashion house), and numerous other luxury brands across different categories and geographic origins. LVMH's ability to maintain brand independence while providing group-level resources and expertise became a key competitive advantage.

The 2008 financial crisis presented significant challenges to the luxury goods industry, but LVMH demonstrated remarkable resilience through strategic positioning and brand strength. The company navigated the economic downturn by focusing on core luxury values, maintaining brand prestige, and leveraging its diversified portfolio across different luxury segments and geographic markets.

In the 2010s, LVMH continued its expansion with major acquisitions including Bulgari in 2011, bringing one of the world's most prestigious jewelry and watch brands into the group. The acquisition of Tiffany & Co. in 2021 for $15.8 billion represented LVMH's largest acquisition to date, significantly strengthening its position in the jewelry market and adding an iconic American luxury brand to its predominantly European portfolio.

Recent years have seen LVMH focus on digital transformation, sustainability initiatives, and maintaining brand heritage while embracing innovation. The company has invested significantly in e-commerce capabilities, digital marketing, and customer experience enhancement across all brands. LVMH has also taken leadership positions in sustainability and ethical luxury practices, addressing growing consumer concerns about environmental and social responsibility in luxury production.

In 2025, LVMH demonstrated solid performance despite challenging global economic and geopolitical conditions. The company recorded revenue of €39.8 billion in the first half of 2025, with profit from recurring operations reaching €9 billion. Bernard Arnault commented on the company's performance, emphasizing "the power of our iconic brands and their boundless capacity for innovation while remaining true to their culture of incomparable artisanal craftsmanship."

The company's performance in 2025 reflected solid local demand in Europe and the United States, though Japan experienced a decline compared to the previous year's exceptional performance driven by tourist spending. LVMH's diverse business segments showed varying performance, with Fashion & Leather Goods maintaining very high operating margins despite revenue pressure, while Selective Retailing achieved growth in both revenue and profit.

LVMH's evolution from a relatively small luxury conglomerate to a global luxury powerhouse represents one of the most successful corporate transformations in modern business history. The company's ability to maintain brand heritage while driving innovation, combined with strategic acquisitions and disciplined financial management, has established LVMH as the undisputed leader in the global luxury goods market.