Please see below article received from EPIC Investment Partners this morning, which provides a succinct and interesting insight into the success of Louis Vuitton’s parent company, LVMH.
Last week LVMH, the parent company of Louis Vuitton, surpassed USD500bn in market value, the first European company to reach the half a trillion-dollar mark, less than two weeks after joining the club as one of the world’s top 10 most valuable companies. LVMH, which also includes brands such as Moët & Chandon, Hennessy, Givenchy, and Bulgari under its umbrella, reported a 17% rise in first-quarter sales earlier in April, more than double analyst expectations. In total, LVMH controls around 60 businesses that manage 75 prestigious brands. The shares were up nearly 33% year to date.
The rise in LVMH stock means that its co-founder, chairman and chief executive, Bernard Arnault’s net worth now approaches USD213bn, the world’s richest man, and a staggering USD50bn more than the world’s second richest, Elon Musk.
Arnault’s vice-like grip on the company is also pretty much guaranteed in the long term after he recently appointed his offspring to key positions within the business. The eldest child, Delphine, was named CEO of Christian Dior, the empire’s second-largest brand. Antoine, her brother, was appointed head of the holding corporation that oversees LVMH and the Arnault family fortune.
His three youngest children were also given important roles within the company. Alexandre is an executive at Tiffany, Frédéric is the chief executive of TAG Heuer, while the youngest, Jean, heads marketing and product development for Louis Vuitton’s watch division.
According to some articles, Arnault, 74, in giving his children the positions, is auditioning them to see which one will be the best fit for the top job the day he decides to hang his boots up. It is reported he invites his offspring to a monthly lunch at the company’s headquarters in Paris, where he asks them for advice, their thoughts on how the company should move forward and even presents a list of topics up for discussion.
However, as the CEO of LVMH’s fashion arm, Sidney Toledano, said recently “there is no guarantee that any of his children will succeed him”.
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Chloe
03/05/2023