FISCAL YEAR ENDED DECEMBER 31, 2023
UNIVERSAL REGISTRATION DOCUMENT

FISCAL YEAR ENDED DECEMBER 31, 2023

UNIVERSAL REGISTRATION DOCUMENT

CONTENTS

History

Although the history of the LVMH group began in 1987 with the merger of Moët Hennessy and Louis Vuitton, the roots of the Group actually stretch back much further, to eighteenth-century Champagne, when a man named Claude Moët decided to build on the work of Dom Pérignon, a contemporary of Louis XIV; and to nineteenth-century Paris, famous for its imperial celebrations, where Louis Vuitton, a craftsman trunk-maker, invented modern luggage. Today, the LVMH group is the world’s leading luxury goods company, the result of successive alliances among companies that, from generation to generation, have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest. These companies now form a powerful, global Group in which the historic companies share their expertise with the newer brands, and continue to cultivate the art of growing while transcending time, without losing their soul or their image of distinction.

From the 14th century to the present

14th century

1365

Le Clos des Lambrays

16th century

1593

Château d’Yquem

18th century

1729

Ruinart

1743

Moët & Chandon

1765

Hennessy

1772

Veuve Clicquot

1780

Chaumet

19th century

1803

Officine Universelle Buly

1815

Ardbeg

1817

Cova

1828

Guerlain

1832

Château Cheval Blanc

1837

Tiffany & Co.

1843

Krug

Glenmorangie

1846

Loewe

1849

Royal Van Lent

1852

Le Bon Marché

1854

Louis Vuitton

1858

Mercier

1860

TAG Heuer

Jardin d’Acclimatation

1865

Zenith

1870

La Samaritaine

1884

Bulgari

1895

Berluti

1898

Rimowa

20th century

1908

Les Echos

1914

Patou

1916

Acqua di Parma

1923

La Grande Épicerie de Paris

1924

Loro Piana

1925

Fendi

1936

Dom Pérignon

Fred

Minuty

1944

Le Parisien-Aujourd’hui en France

1945

Celine

1946

Christian Dior Couture

1947

Parfums Christian Dior

Emilio Pucci

1952

Givenchy

Connaissance des Arts

1955

Château Galoupet

1957

Parfums Givenchy

Repossi

Vuarnet

1959

Chandon

1960

DFS

1969

Sephora

1970

Kenzo

1972

Perfumes Loewe

1973

Joseph Phelps

1974

Investir-Le Journal des Finances

1975

Ole Henriksen

1976

Benefit Cosmetics

Belmond

1977

Newton Vineyard

1980

Hublot

1983

Radio Classique

1984

Marc Jacobs

Make Up For Ever

1985

Cloudy Bay

1988

Kenzo Parfums

1991

Fresh

1992

Colgin Cellars

1993

Belvedere

1996

Terrazas de los Andes

1998

Bodega Numanthia

1999

Cheval des Andes

21st century

2006

Armand de Brignac

Château d’Esclans

Maisons Cheval Blanc

2007

Barton Perreira

2008

KVD Vegan Beauty

2009

Maison Francis Kurkdjian

2010

Woodinville

2013

Ao Yun

2017

Fenty Beauty by Rihanna

Volcán de mi Tierra

2020

Eminente

2022

Stella by Stella McCartney

Financial highlights

Key consolidated data

(EUR millions)

2023

2022

2021

Revenue

86,153

79,184

64,215

Profit from recurring operations

22,802

21,055

17,151

Net profit

15,952

14,751

12,698

Net profit, Group share

15,174

14,084

12,036

Cash from operations before changes in working capital

29,520

26,770

22,621

Operating investments

7,478

4,969

2,664

Operating free cash flow (a)

8,104

10,113

13,531

Equity (b)

62,701

56,604

48,909

Net financial debt (c)

10,746

9,201

9,607

Adjusted net financial debt/Equity ratio

17.1%

16.3%

19.6%

(a)  See the consolidated cash flow statement in the consolidated financial statements for the definition of “Operating free cash flow”.

(b)  Including minority interests.

(c)   Excluding “Lease liabilities” and “Purchase commitments for minority interests’ shares” included in “Other non-current liabilities”.

Information by business group

Revenue by business group (EUR millions)

2023

2022

2021

Wines and Spirits

6,602

7,099

5,974

Fashion and Leather Goods

42,169

38,648

30,896

Perfumes and Cosmetics

8,271

7,722

6,608

Watches and Jewelry

10,902

10,581

8,964

Selective Retailing

17,885

14,852

11,754

Other activities and eliminations

324

281

19

Total

86,153

79,184

64,215

Change in revenue by business group (EUR millions and as %)

2023

2022

2023-2022 Change

2021

Reported

Organic (a)

Wines and Spirits

6,602

7,099

-7%

-4%

5,974

Fashion and Leather Goods

42,169

38,648

9%

14%

30,896

Perfumes and Cosmetics

8,271

7,722

7%

11%

6,608

Watches and Jewelry

10,902

10,581

3%

7%

8,964

Selective Retailing

17,885

14,852

20%

25%

11,754

Other activities and eliminations

324

281

-

-

19

Total

86,153

79,184

9%

13%

64,215

(a)  On a constant consolidation scope and currency basis. The net impact of exchange rate fluctuations on Group revenue was -4% and the net impact of changes in the scope of consolidation was negligible. The principles used to determine the net impact of exchange rate fluctuations on the revenue of entities reporting in foreign currencies and the net impact of changes in the scope of consolidation are described on page 39.

Profit from recurring operations by business group (EUR millions)

2023

2022

2021

Wines and Spirits

2,109

2,155

1,863

Fashion and Leather Goods

16,836

15,709

12,842

Perfumes and Cosmetics

713

660

684

Watches and Jewelry

2,162

2,017

1,679

Selective Retailing

1,391

788

534

Other activities and eliminations

(409)

(274)

(451)

Total

22,802

21,055

17,151

Information by geographic region

Revenue by geographic region of delivery (as %)

2023

2022

2021

France

8

8

6

Europe (excl. France)

17

16

15

United States

25

27

26

Japan

7

7

7

Asia (excl. Japan)

31

30

35

Other markets

12

12

11

Total

100

100

100

Revenue by currency (as %)

2023

2022

2021

Euro

20

19

17

US dollar

28

30

28

Japanese yen

7

7

7

Hong Kong dollar

3

2

3

Other currencies

42

42

45

Total

100

100

100

Number of stores

2023

2022

2021

France

550

518

522

Europe (excl. France)

1,213

1,108

1,203

United States

1,128

1,054

1,014

Japan

497

496

477

Asia (excl. Japan)

2,003

1,829

1,746

Other markets

706

659

594

Total

6,097

5,664

5,556

Data per share

(EUR)

2023

2022

2021

Earnings per share

Basic Group share of earnings per share

30.34

28.05

23.90

Diluted Group share of earnings per share

30.33

28.03

23.89

Dividend per share

Interim

5.50

5.00

3.00

Final

7.50

7.00

7.00

Gross amount paid for fiscal year (a) (b)

13.00

12.00

10.00

(a)  For fiscal year 2023, amount proposed at the Shareholders’ Meeting of April 18, 2024.

(b)  Gross amount paid for fiscal year, excluding the impact of the tax regulations applicable to the recipient.

Executive and supervisory bodies; Statutory Auditors

Board of Directors

Bernard Arnault

Chairman and Chief Executive Officer

Antonio Belloni (a)

Group Managing Director

Antoine Arnault (b)

Delphine Arnault

Dominique Aumont

Director representing the employees

Nicolas Bazire (c)

Marie-Véronique Belloeil-Melkin

Director representing the employees

Sophie Chassat (d)

Charles de Croisset (c) (d)

Lead Director

Clara Gaymard (d)

Marie-Josée Kravis (d)

Laurent Mignon (d)

Marie-Laure Sauty de Chalon (d)

Yves-Thibault de Silguy (c) (d)

Natacha Valla (d)

Hubert Védrine (d)

Advisory Board members

Yann Arthus-Bertrand

Diego Della Valle

Lord Powell of Bayswater

Appointments proposed at the Shareholders’ Meeting of April 18, 2024

Board of Directors

Henri de Castries (d)

Alexandre Arnault

Frédéric Arnault

Executive Committee

Bernard Arnault

Chairman and Chief Executive Officer

Antonio Belloni (a)

Group Managing Director

Delphine Arnault

Christian Dior Couture

Nicolas Bazire

Development and Acquisitions

Pietro Beccari

Louis Vuitton

Stéphane Bianchi

Watches & Jewelry

Michael Burke

Fashion Group

Chantal Gaemperle

Human Resources and Synergies

Jean-Jacques Guiony

Finance

Christopher de Lapuente

Selective Retailing

Stéphane Rinderknech

Hospitality Excellence & Beauty

Philippe Schaus

Wines & Spirits

Jérôme Sibille

General Administration & Legal Affairs

Jean-Baptiste Voisin

Strategy

General Secretary

Marc-Antoine Jamet

Performance Audit Committee (e)

Clara Gaymard (d)

Chairman

Charles de Croisset (c) (d)

Marie-Laure Sauty de Chalon (d)

Yves-Thibault de Silguy (c) (d)

Governance & Compensation Committee (e)

Natacha Valla (d)

Chairman

Sophie Chassat (d)

Charles de Croisset (c) (d)

Marie-Josée Kravis (d)

Ethics & Sustainable Development Committee (e)

Yves-Thibault de Silguy (c) (d)

Chairman

Delphine Arnault

Marie-Laure Sauty de Chalon (d)

Hubert Védrine (d)

Statutory Auditors

Deloitte & Associés

represented by Guillaume Troussicot and Bénédicte Sabadie

Mazars

represented by Isabelle Sapet and Simon Beillevaire

Appointment proposed at the Shareholders’ Meeting of April 18, 2024

Statutory Auditor in charge of certifying sustainability information

Deloitte & Associés

represented by Guillaume Troussicot and Olivier Jan

(a)  Antonio Belloni will carry out these terms of office and functions until April 18, 2024.

(b)  Renewal of term of office as Director proposed at the Shareholders’ Meeting on April 18, 2024.

(c)   Until the close of the Shareholders’ Meeting of April 18, 2024.

(d)  Independent Director.

(e)  Proposed changes to this committee to be made by decision of the Board of Directors following the Shareholders’ Meeting of April 18, 2024.

Simplified organizational chart of the Group as of December 31, 2023

The objective of this chart is to present the direct and/or indirect control structure of brands and trade names by the Group’s main holding companies. It does not provide a complete presentation of all Group shareholdings.

Holding companies   Brands and trade names

(*)  Accounted for using the equity method.

MANAGEMENT REPORT OF THE BOARD OF DIRECTORS: THE GROUP

LVMH’s business model

1. Business group overview

2. Group values

3. Operating model

The LVMH group was formed from the merger of Moët Hennessy and Louis Vuitton in 1987. Bernard Arnault became the leading shareholder and Chairman and Chief Executive Officer in 1989, with the ambition of making LVMH the world leader in luxury.

Today, the LVMH group has built its leading position through a unique portfolio of 75 exceptional Maisons, operating in six business segments. Each of them creates products that combine high-level expertise with a strong heritage, drawing their momentum from a spirit of innovation and openness to the world.

The Group helps its Maisons grow over the long term, based on respect for their specific strengths and individuality, underpinned by common values and a shared business model. LVMH provides them with all of the resources they need to grow in terms of designing, manufacturing and selectively retailing their products and services.

LVMH is a committed group. In addition to being a responsible corporate citizen which conducts its business in the most exemplary way, the Group has decided, in conjunction with its Maisons, to implement a number of initiatives not directly related to their business activities in support of society, the environment and culture. These longstanding commitments contribute to a long-term vision and provide a powerful response to the role a group like LVMH should play within society.

1.     Business group overview

LVMH is the only group that operates simultaneously, through its Maisons, in all the following major luxury sectors:

Wines and Spirits: Based in Champagne, Bordeaux and other renowned wine-growing regions, the LVMH group’s Maisons – some of which are hundreds of years old – all have their own unique character, backed by a shared culture of excellence. The activities of LVMH in Wines and Spirits are divided between the Champagne and Wines segment and the Cognac and Spirits segment. This business group focuses on growth in high-end market segments through a powerful, agile international distribution network. LVMH is the world leader in cognac, with Hennessy, and in champagne, with an outstanding portfolio of brands and complementary product ranges. It also produces high-end still and sparkling wines from around the world.

Fashion and Leather Goods: LVMH includes established Maisons with their own unique heritage and more recent brands. Whether they are part of Haute Couture or luxury fashion, LVMH’s Maisons have based their success on the quality, authenticity and originality of their designs, created by talented, renowned designers. All the Group’s Maisons are focused on the creativity of their collections, building on their iconic, timeless lines, achieving excellence in their retail networks and strengthening their online presence, while maintaining their identity.

Perfumes and Cosmetics: LVMH is a key player in the perfume, makeup and skincare sector, with a portfolio of world-famous established names as well as younger brands with a promising future. Its Perfumes and Cosmetics business group boasts exceptional momentum, driven by growing and securing the long-term future of its flagship lines as well as boldly developing new products. The Maisons cultivate their individuality, a differentiating factor for their followers in a highly competitive global market. At the same time, they are all driven by the same values: the pursuit of excellence, creativity, innovation and complete control of their brand image.

Watches and Jewelry: The Maisons in Watches and Jewelry – LVMH’s youngest business group – operate in the high-end watchmaking, jewelry and high jewelry sectors. LVMH’s brands in this business group are positioned to complement each other’s strengths. These Maisons rely on their outstanding expertise, creativity and innovation to surprise their customers all over the world and respond to their aspirations.

Selective Retailing: The Group’s Selective Retailing brands all pursue a single objective: transforming shopping into a unique experience. From elegant interior design to a specialist selection of products and services, combined with personalized relationships, customers are the focus of their attention on a daily basis. Operating all over the world, the Maisons are active in two spheres: selective retail and travel retail (selling luxury goods to international travelers).

Other activities: The Maisons in this business group are all ambassadors for culture and an art de vivre that is emblematic of LVMH. This approach is taken by Maisons including the Les Echos group, which – in addition to Les Echos, the leading daily financial newspaper in France – owns several business and arts titles; the Royal Van Lent shipyard, which builds and markets custom-designed yachts under the prestigious Feadship name; Belmond, which has a large portfolio of hotels, trains, cruise lines and safari lodges that combine heritage, expertise, authenticity and impeccable service; and the exceptional Cheval Blanc hotels, which operate worldwide.

Key figures (as of December 31, 2023)

75

Maisons

31

Maisons over 100 years old

81

countries worldwide

86.1

billion euros in revenue

213,268

employees worldwide

6,097

stores worldwide

Geographic presence (as of December 31, 2023)

2.     Group values

Driven by the engagement of LVMH and its Maisons to craft dreams, our Group puts heart and soul into everything it does. Our core identity is based on the fundamental values that run through it and are shared by all of us.

Being creative and innovative: Creativity and innovation are part of LVMH’s DNA; throughout the years, they have been the keys to the Maisons’ success and the basis of their solid reputations. These fundamental values of creativity and innovation are pursued in tandem by the Group’s Maisons as they focus on achieving the ideal balance between continually renewing their offer while resolutely looking to the future, always respecting their unique heritage.

Delivering excellence: Within the Group, quality can never be compromised. Because the Maisons embody everything that is most noble and accomplished in the world of fine craftsmanship, they pay extremely close attention to detail and strive for perfection: from products to services, it is in this quest for excellence that the Group differentiates itself.

Cultivating an entrepreneurial spirit: The Group’s agile, decentralized structure fosters efficiency and responsiveness. It encourages individuals to take initiative by giving everyone a significant level of responsibility. The entrepreneurial spirit promoted by the Group makes risk-taking easier and encourages perseverance. It requires a pragmatic approach and the ability to motivate staff to achieve ambitious goals.

Taking action to make a difference: Every action taken by the Group and its employees reflects our commitment to ethics, corporate social responsibility and respect for the environment. These commitments drive our Maisons’ performance and ensure their longevity. Firmly convinced that truly desirable products can only come from sustainable businesses, we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places we operate, and that our Group is actively working to build a better future.

3.     Operating model

LVMH has implemented a unique operating model based on six pillars, which contributes to the Group’s long-term success by combining profitable growth, sustainability and a commitment to excellence:

Decentralized organization: The structure and operating principles adopted by LVMH ensure that Maisons are both autonomous and responsive. As a result, they are able to build close relationships with their customers, make fast, effective and appropriate decisions, and motivate Group employees for the long term by encouraging them to take an entrepreneurial approach.

Internal growth: The LVMH group prioritizes internal growth and is committed to developing its Maisons, and encouraging and protecting their creativity. Staff play a critical role in a model of this kind, so supporting them in their career and encouraging them to exceed their own expectations is essential.

Vertical integration: Designed to cultivate excellence both up- and downstream, vertical integration ensures control of every stage of the value chain, from sourcing to production facilities and Selective Retailing. It also guarantees strict control of each Maison’s brand image.

Creating synergies: Resources are pooled at Group level to create intelligent synergies while respecting each Maison’s independence and autonomy. The combined strength of the LVMH group is leveraged to benefit each of its Maisons.

Securing expertise for the long term: The Maisons that make up the Group cultivate a long-term vision. To preserve their distinctive identities and excellence, LVMH and its Maisons have developed a range of initiatives to pass down skills and expertise, and promote craft trades and design professions among younger generations.

Balance across business segments and geographies: The LVMH group has the resources to sustain regular growth thanks to the balance across its business activities and a well-distributed geographic footprint. This balance means that the Group is well-positioned to withstand the impact of shifting economic factors.

Management Report of the Board of Directors: the Group

Business overview, highlights and outlook

1. Wines and Spirits

1.1 Champagne and Wines

1.2 Cognac and Spirits

1.3 Wines and Spirits distribution

1.4 Highlights of 2023 and outlook for 2024

2. Fashion and Leather Goods

2.1 The brands of the Fashion and Leather Goods business group

2.2 Competitive position

2.3 Design

2.4 Distribution

2.5 Supply sources and subcontracting

2.6 Highlights of 2023 and outlook for 2024

3. Perfumes and Cosmetics

3.1 The brands of the Perfumes and Cosmetics business group

3.2 Competitive position

3.3 Research

3.4 Manufacturing, supply sources and subcontracting

3.5 Distribution and communication

3.6 Highlights of 2023 and outlook for 2024

4. Watches and Jewelry

4.1 The brands of the Watches and Jewelry business group

4.2 Competitive position

4.3 Distribution

4.4 Supply sources and subcontracting

4.5 Highlights of 2023 and outlook for 2024

5. Selective Retailing

5.1 Travel retail

5.2 Selective retail

5.3 Competitive position

5.4 Highlights of 2023 and outlook for 2024

6. Other activities

1.     Wines and Spirits

In 2023, revenue for the Wines and Spirits business group represented 8% of the LVMH group’s total revenue. Champagne and wines made up 52% of this revenue, while cognac and spirits accounted for 48%.

1.1         Champagne and Wines

1.1.1       Champagne and Wine brands

LVMH produces and sells a very broad range of high-quality champagnes. Beyond the Champagne region, the Group develops and distributes a range of high-end still and sparkling wines produced in nine countries spanning four continents: France, Spain, the United States (California), Argentina, Brazil, Australia, New Zealand, India and China.

Moët & Chandon was founded in 1743 by Claude Moët and elevated to international renown by his descendant Jean-Rémy Moët, who dreamed of “sharing the effervescence of champagne with the world”. From royal court to red carpet and from Studio 54 to grand slams, Moët & Chandon brings people together to share thrilling and extraordinary moments. With the region’s largest and most diversified vineyards, the Maison offers a universal and versatile portfolio of champagnes to suit every occasion and palette. Easy to love, each creation – from the iconic Moët Impérial to the exquisite Grand Vintage collection, from the innovative Moët Ice Impérial to the smooth Nectar Impérial, and the multifaceted Collection Impériale, which represents a new expression of the Maison’s “Haute Œnologie” (high winemaking) expertise – amazes with a broad range of flavors and aromas capturing the full extent of its terroir. Through its long-term sustainable development program, Natura Nostra, Moët & Chandon is working to protect biodiversity in the region. The Maison has also been supporting philanthropic initiatives through Toast for a Cause since 2009. For nearly three centuries, Moët & Chandon has been the champagne of choice to mark key events in history and personal celebrations, adding a spark of effervescence to each toast.

Dom Pérignon is driven by a creative ambition – a relentless quest to achieve perfect harmony. This vision has guided Dom Pérignon from the outset: in 1668, Dom Pierre Pérignon, the 17th-century Benedictine monk, made it his ambition to produce “the best wine in the world”. Today, Vincent Chaperon, the Maison’s Cellar Master, brings that same creative ambition to each vintage champagne he crafts, fully embracing the three dimensions having built Dom Pérignon’s renown: the year and the character of its seasons; the successive windows of expression, called Plénitudes, requiring long maturation on lees; and color, through the hues captured in white and rosé styles.

Founded in 1772, Veuve Clicquot, has been spreading its joyful, sun-kissed “Culture Solaire” all over the world for more than 250 years, always driven by daring, creativity and innovation. When she took over the management of the Maison in 1805, Madame Clicquot became one of the first businesswomen of modern times. Staying true to her motto, “Only one quality: the finest”, this great lady changed the face of Champagne through a series of creative breakthroughs, including the first vintage champagne, the first riddling table, and the first blended rosé champagne, all still holding sway today. As part of this quest for excellence, the Maison continues to apply its unique expertise grounded in a love for Pinot Noir and a deep understanding of the art of aging. Drawing on more than two centuries of know-how, Veuve Clicquot’s constancy of style has given rise to iconic cuvées like Brut Yellow Label as well as the prestige cuvée La Grande Dame, the epitome of the Maison’s wine-making prowess. The gold-yellow color used on its labels since 1877 is also that of the rising sun, evoking at once Veuve Clicquot’s unique heritage, its radiant vision and its optimistic mindset. Paying tribute to its history and the extraordinary destiny of an exceptional woman, in 1972 the Maison established what is known today as the Bold Woman Award, taking shape as an impactful program offering tangible support throughout the year to women entrepreneurs around the world.

Ruinart, founded in 1729, is the oldest of the champagne houses. Each of its cuvées expresses the distinctive personality of Chardonnay, the Maison’s dominant grape variety. Born in 1843 out of the dream of one man with a vision, Krug stands out for the indisputable excellence of its expertise and its unending quest to deliver poetic sensory experiences. Joseph Krug dreamed of offering the most generous expression of champagne each and every year, whatever the vagaries of the climate. Krug Grande Cuvée is the embodiment of this raison d’être: the Krug family has created a new edition of this cuvée every year going back six generations. Mercier, founded in 1858, offers the simplest of tasting experiences. A reflection of its era, it adapts traditional ways of tasting, putting the focus on spontaneity over ceremony, while remaining faithful to the vision of quality espoused by its founder Eugène Mercier.

Armand de Brignac is the latest champagne house to join the Group’s portfolio, bringing unrivaled energy and innovation to the sector since 2006. Also known under the name Ace of Spades and reflecting the unique vision of Shawn “Jay-Z” Carter, Armand de Brignac upends conventions and encapsulates contemporary luxury, all while honoring the traditions of Champagne’s famed terroirs. Jointly owned by LVMH and Shawn “Jay-Z” Carter since 2021, the Maison is continuing to expand its reach by reaffirming its resolutely upscale positioning.

LVMH’s portfolio of wines from outside the Champagne region includes a number of prestigious appellations in France, Spain, America, Asia and Oceania.

LVMH owns the following wineries outside of France: Cloudy Bay in New Zealand; the iconic Colgin Cellars (founded by Ann Colgin 30 years ago and acquired by LVMH in 2017), Joseph Phelps (one of the most acclaimed wine estates in Napa Valley and acquired by LVMH in 2022) and Newton Vineyard in California; Terrazas de los Andes and Cheval des Andes in Argentina; Ao Yun in China; and Bodega Numanthia in Spain. The Cape Mentelle winery in Australia was sold in 2023. The Chandon brand (created in 1959 in Argentina) includes the Moët Hennessy sparkling wines developed in California, Argentina, Brazil, Australia, India and China by Chandon Estates.

In France, since 1999 LVMH has owned Château d’Yquem, the most celebrated Sauternes and the only Premier Cru Supérieur in the 1855 classification. Since 2009, the Group has held a 50% stake in the prestigious winery Château Cheval Blanc, Premier Grand Cru Classé A Saint-Émilion, accounted for using the equity method. In 2014, LVMH acquired Domaine du Clos des Lambrays, one of the oldest and most prestigious Burgundy vineyards, and Grand Cru of the Côte de Nuits. Château Galoupet (which has held the acclaimed Cru Classé des Côtes-de-Provence designation since 1955) and Château d’Esclans (the US market leader in Provence rosé wines) also joined the portfolio of wines in 2019. Lastly, in 2023 LVMH acquired Château Minuty, renowned worldwide for its rosé wine, which has also been a Cru Classé des Côtes-de-Provence since 1955, and is located in Gassin on the peninsula of Saint-Tropez.

1.1.2       Competitive position

In 2023, shipments of LVMH champagne brands were down 6.8% from 2022, while shipments from the Champagne region decreased by 8.2% (source: CIVC). LVMH’s market share thus rose to 22.9% of the total shipments, compared to 22.5% in 2022.

Champagne shipments, for the whole Champagne region, break down as follows:

(in millions of bottles and percentage)

2023

2022

2021

Sales volume

Market share (%)

Sales volume

Market share (%)

Sales volume

Market share (%)

Region

LVMH

Region

LVMH

Region

LVMH

France

127

9.0

7.1

138.4

9.1

6.6

140.8

8.6

6.1

Export

172

59.4

34.6

187.5

64.4

34.3

180.0

60.4

33.6

Total

299

68.4

22.9

325.9

73.4

22.5

320.8

69.0

21.5

(Source: Comité Interprofessionnel du Vin de Champagne – CIVC).

The geographic breakdown of LVMH champagne sales is as follows (as a percentage of total sales expressed in number of bottles):

(as %)

2023

2022

2021

Germany

5

5

5

United Kingdom

7

7

7

United States

20

23

25

Italy

4

4

4

Japan

10

10

9

Australia

5

5

5

Other

36

34

32

Total export

87

88

87

France

13

12

13

Total

100

100

100

1.1.3       The champagne production method

The Champagne appellation covers a defined geographic area classified A.O.C. (Appellation d’Origine Contrôlée), which covers the 34,000 hectares that can be legally used for production. There are essentially three main types of grape varietals used in the production of champagne: Chardonnay, Pinot Noir and Meunier.

In addition to its effervescence, the primary characteristic of champagne is that it is the result of blending wines from different years and/or different varieties and land plots. The best brands are distinguished by their masterful blend and consistent quality, achieved thanks to the talent of their wine experts.

Weather conditions significantly influence the grape harvest from one year to the next. The production of champagne also requires aging in cellars for two years or more for premium, vintage and/or prestige cuvées. To protect themselves against crop variations and manage fluctuations in demand, but also to ensure consistent quality year after year, LVMH’s champagne houses regularly adjust the quantities available for sale and keep reserve wines in stock, mainly in storage tanks. As maturation times vary, the Group constantly maintains significant champagne inventories in its cellars. As of year-end 2023, 241 million bottles were stored in LVMH’s cellars in Champagne, equivalent to about 3 years of sales; in addition to this bottled inventory, the Group has wines still in storage tanks waiting to be drawn (equivalent to 100 million bottles), including the quality reserve withheld from sale in accordance with applicable industry rules (equivalent to 10 million bottles).

The making of champagne involves extremely rigorous processes in order to ensure absolute consistency in quality from year to year. Moët et Chandon fully operates its Mont Aigu site, with its vat room, bottling line, cellars, disgorging area and packaging workshop supplementing the production capacity of Moët & Chandon’s historic facilities in Épernay, which are undergoing renovation work. The historic production sites of Veuve Clicquot, Ruinart and Krug are in Reims. Veuve Clicquot continued construction of its new Comète production facility located in Saint-Léonard, near Reims, while Krug finalized construction of a new winemaking site in Ambonnay.

In order to drive innovation and develop expertise in its production processes, the Group inaugurated its research and development facility in Oiry in 2021, which is open to all its Maisons.

1.1.4       Grape supply sources and subcontracting

The Group owns 1,650 hectares under production, which provide 21% of its annual needs. In addition, the Group’s Maisons purchase grapes and wines from winegrowers and cooperatives on the basis of multi-year agreements; the largest supplier of grapes and wines represents less than 10% of total supplies for the Group’s Maisons.

LVMH’s champagne houses, along with their partner grape suppliers, are steadily building up their use of sustainable winegrowing practices for Viticulture Durable en Champagne certification.

Since 1996, industry agreements have established a qualitative reserve in order to cope with variable harvests. The surplus inventories stockpiled this way can be bottled and sold in years with a poor harvest. Each year, the INAO (the French governing body for appellations of origin) sets the maximum harvest that can be made into wine and sold under the Champagne appellation, as well as the ceiling known as the PLC (plafond limite de classement), the quantity by which the appellation’s marketable yield can be exceeded. For the 2023 harvest, the marketable yield for the Champagne appellation was set at 11,400 kg/ha. The maximum level of the stockpiled reserve was revised at the time of the 2023 harvest and is now set at 10,000 kg/ha (up from 8,000 kg/ha previously).

The price paid for each kilogram of grapes in the 2023 harvest ranged between 6.25 euros and 7.35 euros depending on the vineyard, an average increase of 7.5% compared to the 2022 harvest. Premiums may be paid on top of the base price in line with the special conditions agreed under each partnership, in particular the additional work required for Viticulture Durable en Champagne certification.

Dry materials (bottles, corks, etc.) and all other components of containers and packaging are purchased from non-Group suppliers.

In 2023, the champagne houses also used subcontractors for about 42 million euros of services, notably pressing, co-packing, handling and storing bottles.

1.2         Cognac and Spirits

1.2.1       Cognac and Spirits brands

LVMH holds the most powerful brand in the cognac sector with Hennessy. The company was founded by Richard Hennessy in 1765. Historically, the brand was most prominent in the Irish and British markets, but Hennessy rapidly expanded its presence in Asia, which represented nearly 30% of its shipments as early as 1925. The brand became the world cognac leader in 1890. Hennessy created X.O (Extra Old) in 1870, and since then it has developed a range of high-end cognac for which it is highly renowned.

In 2005, LVMH acquired The Glenmorangie Company, which owns the single malt whisky brands Glenmorangie, distilled in northeastern Scotland in Europe’s tallest stills, and Ardbeg, distilled on the Isle of Islay in the southern Hebrides.

Since 2007, LVMH has owned the luxury vodka Belvedere, founded in 1993 in order to bring a luxury vodka for connoisseurs to the American market. It is made at the Polmos Żyrardów distillery in Poland, which was founded in 1910.

Since 2017, Volcán de mi Tierra tequila, which was created in collaboration with Mexican entrepreneur Juan Gallardo Thurlow, has been primarily available in the United States and Mexico. Volcán de mi Tierra is accounted for using the equity method.

Acquired in 2017, Woodinville Whiskey Company – which was established in 2010 by Orlin Sorensen and Brett Carlile and is now the largest craft whiskey distillery in Washington State – finished work on a major production capacity expansion program in 2022.

In 2020, the Group expanded its portfolio of spirits with the launch of Eminente, an exceptional Cuban rum aimed primarily at the European market.

1.2.2       Competitive position

In 2023, the volumes shipped from the Cognac region were down 22.3% from 2022 (source: BNIC), while volumes of Hennessy shipped decreased by 20.9%. Hennessy’s market share of volumes shipped from the Cognac region improved by 0.9 points to 49% in 2023 from 48% in 2022. The company is the world leader in cognac and premium international spirits, with particularly strong positions in the United States, China and other important markets for cognac (South Africa, Nigeria, the United Kingdom, etc.).

The leading geographic markets for cognac, both for the industry and for LVMH, on the basis of shipments in number of bottles, excluding bulk, are as follows:

(in millions of bottles and percentage)

2023

2022

2021

Sales volume

Market share (%)

Sales volume

Market share (%)

Sales volume

Market share (%)

Region

LVMH

Region

LVMH

Region

LVMH

France

4.4

1.6

36.8

5.1

2.3

45.2

5.3

2.4

45.4

Europe (excl. France)

26.8

7.3

27.1

27.7

7.4

26.7

28.9

6.6

22.8

United States

58.1

38.1

65.6

110.6

63.5

57.4

114.5

62.6

54.7

Asia

57.4

21.3

37.0

50.1

17.3

34.5

57.2

19.2

33.6

Other markets

15.4

10.8

69.6

15.2

9.3

61.6

12.9

8.0

62.0

Total

162.2

79.0

48.7

208.7

99.8

47.8

218.9

98.9

45.2

(Source: Bureau National Interprofessionnel du Cognac – BNIC).

The geographic breakdown of LVMH cognac sales, as a percentage of total sales expressed in number of bottles, is as follows:

(as %)

2023

2022

2021

United States

54

60

65

Japan

1

1

-

Asia (excl. Japan)

22

19

18

Europe (excl. France)

9

8

7

Other

13

12

10

Total export

99

100

100

France

1

-

-

Total

100

100

100

1.2.3       The cognac production method

The Cognac region is located around the Charente basin. The vineyard, which currently extends over more than 83,000 hectares, consists almost exclusively of the Ugni Blanc varietal which yields a wine that produces the best eaux-de-vie. This region is divided into six vineyards, each of which has its own qualities: Grande Champagne, Petite Champagne, Borderies, Fins Bois, Bons Bois and Bois Ordinaires. Hennessy selects its eaux-de-vie essentially from the first four vineyards, where the quality of the wines is more suitable for the preparation of its cognacs.

Charentaise distillation is unique because it takes place in two stages: a first distillation (première chauffe) and a second distillation (seconde chauffe). The eaux-de-vie obtained are aged in oak barrels. Cognac results from the gradual blending of eaux-de-vie selected on the basis of vintage, origin and age.

Hennessy – which carries out all of its production in Cognac – inaugurated a state-of-the-art bottling and packaging plant named Pont Neuf in 2017. With the inauguration of a second production line at the Pont Neuf plant in 2021, the Maison’s production capacity has been raised to 10 million cases per year. The design of this 26,000-square-meter facility reduces its environmental footprint and optimizes working conditions to an extent never achieved previously.

1.2.4       Supply sources for wines and cognac eaux-de-vie and subcontracting

Most of the cognac eaux-de-vie that Hennessy needs for its production are purchased from a network of approximately 1,600 independent producers, a collaboration which enables the company to ensure that exceptional quality is preserved as part of an ambitious sustainable winegrowing policy. Hennessy directly operates about 180 hectares, providing for less than 1% of its eaux-de-vie needs.

Purchase prices for eaux-de-vie are agreed on between the company and each producer based on supply and demand and the quality of the eaux-de-vie. Following an increase of 3.5% in 2021, and then 6% in 2022, Hennessy decided not to raise its purchase prices for eaux-de-vie in 2023.

With an optimized inventory of eaux-de-vie, the Maison can manage the impact of price changes by adjusting its purchases from year to year under the contracts with its partners. Hennessy continues to control its purchase commitments and diversify its partnerships to prepare for its future growth across the various quality grades.

Like the Champagne and Wine businesses, Hennessy obtains its dry materials (bottles, corks and other packaging) from non-Group suppliers. The barrels and casks used to age the cognac are also obtained from non-Group suppliers. Hennessy makes only very limited use of subcontractors for its core business: aging, blending and bottling eaux-de-vie.

1.2.5       The vodka production method, supply sources and subcontracting

Belvedere vodka is made using only two ingredients – Polish rye and pure water – and is produced at one of Poland’s oldest distilleries, which has been making vodka since 1910. Belvedere contains no additives, and is produced according to Polish laws governing vodka production, which stipulate that nothing may be added. Belvedere, an expert in rye distilling, draws upon more than 600 years of Polish tradition to produce extraordinary vodka with a distinct flavor and character. Belvedere has three main and long-standing raw eaux-de-vie suppliers, each accounting for around 30% of the Maison’s supplies. Belvedere began transitioning its star product, Belvedere Pure, to organic production in 2023, with the aim of achieving full conversion by 2025.

1.2.6       The Scotch whisky production method

As required by law to receive the Scotch whisky designation, the Glenmorangie and Ardbeg single malt whiskies are produced in Scotland from water and malted barley, fermented using yeast, and distilled and matured in Scotland for at least three years, in oak casks whose capacity may not exceed 700 liters. As single malt whiskies, they are the product of only one distillery. Glenmorangie’s stills are the tallest in Scotland at 5.14 meters and allow only the lightest vapors to ascend and condense. The spirit still at Ardbeg has a unique spirit purifier. Glenmorangie whiskies are normally matured for a minimum of 10 years in very high-quality casks, while Ardbeg whiskies can be sold earlier as their uniquely peaty flavor has already developed.

1.3         Wines and Spirits distribution

Moët Hennessy has a powerful and agile global distribution network, thanks to which the Wines and Spirits business group continues to expand the presence of its portfolio of brands in a balanced manner across all geographies. Part of this network consists of joint ventures with the Diageo spirits group(1), governed by agreements that have been in place since 1987, which help strengthen the positions of the two groups, improve distribution control, enhance customer service and increase profitability by sharing distribution costs. This mainly involves Japan, China and France. In 2023, 26% of champagne and cognac sales were made through this channel.

1.4         Highlights of 2023 and outlook for 2024

2023

2022

2021

Revenue (EUR millions)

6,602

7,099

5,974

Of which: Champagne and wines

3,461

3,474

2,793

Cognac and spirits

3,141

3,625

3,181

Sales volumes (in millions of bottles)

Champagne

66.5

70.9

66.8

Cognac

83.2

94.3

102.6

Other spirits

21.5

23.9

20.8

Still and sparkling wines

52.7

56.5

51.5

Revenue by geographic region of delivery (%)

France

7

6

6

Europe (excl. France)

20

18

18

United States

32

37

38

Japan

6

6

5

Asia (excl. Japan)

21

20

21

Other markets

14

13

12

Total

100

100

100

Profit from recurring operations (EUR millions)

2,109

2,155

1,863

Operating margin (%)

31.9

30.4

31.2

Highlights

Following an exceptional year in 2022, 2023 was marked by contrasting trends across different markets. Consumer demand waned in the United States and China, while Europe showed remarkable resilience, and Asia-Pacific, Latin America and the Caribbean continued to see strong growth, particularly in private sales and travel retail. Against this backdrop, Moët Hennessy pursued its value strategy, enhancing the appeal of its brands and diversifying its portfolio through product innovation and the integration of Château Minuty, confirming its leadership in the Provence rosé market. The desire to forge closer, more direct connections with end-consumers led to the opening of new points of sale, including the first Hennessy store in mainland China and the Cravan cocktail bar in the heart of Paris. Stepping up its commitment to sustainability, Moët Hennessy presented its Maisons’ sustainable farming practices at the ChangeNOW summit, the world’s largest event for sharing solutions for protecting the planet.

While maintaining a firm pricing policy as part of their value strategy, the champagne houses continued to achieve high sales volumes, achieving a record market share of Champagne-appellation shipments. Moët & Chandon benefited from the successful launch of its Grand Vintage 2015 in the first half of the year, celebrating the Maison’s 280 years of expertise and craftsmanship; in October, it unveiled Collection Impériale Création No. 1, the first cuvée of its “Haute Œnologie” (high winemaking) vision, inspiring a collaboration with American artist Daniel Arsham. Dom Pérignon had a record year, with the release of two new vintages and several creative collaborations, while Veuve Clicquot turned in an exceptional performance, buoyed by the launch of La Grande Dame 2015, and offered unforgettable experiences including a tasting of bottles aged underwater in the Baltic Sea. The Maison also reaffirmed its commitment to sustainable luxury and women’s entrepreneurship through a collaboration with Stella McCartney. Krug saw significant growth, with new editions paired with its signature sources of inspiration: fine dining and music. Ruinart unveiled a major collaboration with artist Eva Jospin and launched Blanc Singulier, a new cuvée that highlights the impact of climate change. Armand de Brignac continued its integration into the Moët Hennessy portfolio of brands and expanded its sales into strategic markets, starting with Japan.

The still wine Maisons continued to consolidate their market presence, against a backdrop of normalizing demand in the United States following the post-pandemic surge. Château d’Esclans consolidated its leadership in Côtes-de-Provence wines, Château Galoupet obtained organic certification and Château Minuty joined the Moët Hennessy portfolio. Chandon saw a slight decrease in sales volumes in 2023, despite the success of its all-natural aperitif, Chandon Garden Spritz.

In the first part of the year, Hennessy experienced a significant slowdown in sales in the United States, although the situation gradually recovered at the end of the year. The Maison was also affected by the effects of the Covid pandemic on Chinese New Year celebrations at the beginning of the year. Despite this, it still managed to extend its global leadership in the spirits category. The brand stepped up its commitment to sustainability through initiatives such as the decarbonization of its Cognac distillery and the “Living Landscapes” program aimed at planting hedges in the Cognac region.

Revenue for Glenmorangie and Ardbeg whiskies was affected by market conditions in the United States and China, but substantially exceeded pre-Covid levels, thanks to strong performance in travel retail and in dynamic markets such as Japan. The two Maisons continued to focus on innovation, with Ardbeg introducing gift sets showcasing its legendary history. Belvedere vodka reaffirmed its value strategy with the launch of Belvedere 10, an exceptional vodka designed for the nightlife market. The Maison also obtained organic farming certification in 2023. Woodinville expanded its retail presence in the United States, where it is now available in 35 states. Volcán de mi Tierra continued to develop its ultra-premium expression, partnering with Formula 1 in Las Vegas. Cuban rum-maker Eminente opened a “Casa Eminente” pop-up location in Paris.

Outlook

In an environment that remains uncertain, especially in the United States and China, and with shifts in consumer behavior, the business group is approaching 2024 with caution and pragmatism. It will continue to draw on the strengths of its dynamic teams and solid foundations, including its balanced geographic coverage and diverse portfolio of prestigious brands. The Maisons will continue to enhance their desirability through powerful product-focused initiatives including Armand de Brignac’s launch of the Blanc de Noirs cuvée and Hennessy’s release of new bottles, as well as promotional initiatives including Veuve Clicquot’s partnership with the legendary Venice Simplon-Orient Express and a new creative collaboration for Dom Pérignon. Mindful of their rich heritage and environmental responsibility, they will continue to pursue their sustainability-focused roadmap, aimed at protecting biodiversity and reducing their carbon footprint. In the second half of the year, Moët Hennessy will welcome the world’s leading experts in soil microbiology and sustainable winegrowing to its second World Living Soils Forum, to be held in October in Arles (southern France), aimed at sparking dialogue and stepping up the pace of scientific progress in these fields. Excellence, authenticity, innovation and sustainability remain the guiding principles for the Maisons in the Wines and Spirits business group: core values that reflect their mission – “Crafting Experiences” – as well as Moët Hennessy’s vision of being the leader in luxury wines and spirits.

2.     Fashion and Leather Goods

In 2023, the Fashion and Leather Goods business group represented 49% of the total revenue of LVMH.

2.1         The brands of the Fashion and Leather Goods business group

In the luxury fashion and leather goods sector, LVMH holds a group of brands that are primarily French, but also include Italian, Spanish, British, German and American companies.

Since 1854, Louis Vuitton’s success has been built on the flawless execution of its trunk-making craftsmanship, its complete control over distribution and its exceptional creative freedom, a source of perpetual renewal and innovation. By ensuring the right balance between new designs and iconic leather goods lines, between constantly perfected unique artisanal expertise and the dynamics of fashion designed in perfect symbiosis with the brand universe, the Maison is committed to surprising its customers, and making its stores inspiring. For over 150 years, its product line has continuously expanded with new models – from luggage to handbags and more – and new materials, shapes and colors. Famous for its originality and the high quality of its creations, today Louis Vuitton is the world leader in luxury goods and offers a full range of products: fine and high-end leather goods, ready-to-wear for men and women, shoes and accessories, watches, jewelry, eyewear and, since 2017, a collection of women’s and men’s fragrances.

Christian Dior was founded in 1946. Ever since its first “New Look” show, the Maison has continued to assert its vision through elegant, structured and infinitely feminine collections, becoming synonymous around the world with French luxury. Christian Dior’s unique vision is conveyed today with bold inventiveness throughout the Maison’s entire range, from Haute Couture, leather goods and ready-to-wear to footwear and accessories for both men and women as well as Watches and Jewelry. Parfums Christian Dior is included in the Perfumes and Cosmetics business group.

Founded in Rome by Adele and Edoardo Fendi in 1925, Fendi initially seduced its clientele of elegant Italian women, before conquering the rest of the world. Fendi has been part of the Group since 2000. Particularly well-known for its skill and creativity in furs, the brand is also present in accessories – including the iconic Baguette bag and the timeless Peekaboo – as well as ready-to-wear and footwear for men and women.

Loewe, the Spanish Maison founded in 1846 and acquired by LVMH in 1996, originally specialized in very high-quality leather work. Today it operates in leather goods, ready-to-wear and footwear. Perfumes Loewe is part of the Perfumes and Cosmetics business group.

Marc Jacobs, created in New York in 1984, is named after its founder and has been part of LVMH since 1997. Through its collections of men’s and women’s ready-to-wear, leather goods and shoes, it aims to be the symbol of an irreverent urban fashion movement that is culturally driven but also socially engaged.

Celine, founded in 1945 by Céline Vipiana and owned by LVMH since 1996, offers women’s and men’s ready-to-wear, leather goods, shoes, accessories and women’s and men’s fragrances.

Kenzo, formed in 1970, joined the Group in 1993. Renowned for its lavish prints and vibrant colors, the Maison operates in the areas of ready-to-wear for men and women, fashion accessories, shoes and leather goods. Its perfume business is part of the Perfumes and Cosmetics business group.

Givenchy, founded in 1952 by Hubert de Givenchy and part of the Group since 1988, is rooted in a tradition of excellence in Haute Couture, and is also known for its collections of men’s and women’s ready-to-wear and its fashion accessories. Parfums Givenchy are included in the Perfumes and Cosmetics business group.

Emilio Pucci, an Italian brand founded in 1947, is a symbol of casual fashion in luxury ready-to-wear, a synonym of escape and refined leisure. Emilio Pucci joined LVMH in 2000.

Berluti, an artisan bootmaker established in 1895 and held by LVMH since 1993, designs and markets very high-quality men’s shoes, as well as a line of leather goods and ready-to-wear items for men.

Loro Piana – an Italian company founded in 1924 and held by LVMH since 2013 – creates exceptional products and fabrics, particularly from cashmere, of which it is the world’s foremost processor. The brand is famous for its dedication to quality and the noblest raw materials, its unrivaled standards in design and its expert craftsmanship.

Rimowa, founded in Cologne in 1898, is the first German brand to be owned by LVMH since 2016. Renowned for its prestigious luggage, its products feature an iconic design and reflect its constant quest for excellence.

2.2         Competitive position

In the Fashion and Leather Goods sector, the luxury market is highly fragmented, consisting of a handful of major international groups plus an array of smaller independent brands. LVMH’s brands are present all around the world, and it has established itself as one of the most international groups. All these groups compete in various product categories and geographic areas.

2.3         Design

Working with the best designers, while respecting the spirit of each brand, is a strategic priority: the creative directors promote the Maisons’ identities, and are the artisans of their creative excellence and their ability to reinvent themselves. As a means to continually renew this precious resource, LVMH has always been committed to supporting young designers and nurturing tomorrow’s talent, in particular through the LVMH Prize for Young Fashion Designers, which each year honors the work of an up-and-coming designer displaying exceptional talent and outstanding creativity.

LVMH believes that one of its essential assets is its ability to attract a large number of internationally recognized designers to its Maisons.

In 2023, Pharrell Williams became Creative Director of Menswear at Louis Vuitton. He succeeded Virgil Abloh, who had been the Maison’s Creative Director of Menswear from 2018 until his tragic passing in late 2021. At Givenchy, after three years helming both its men’s and women’s collections, Matthew M. Williams is stepping down as the Maison’s Creative Director. In 2021, Tomoaki Nagao, known as Nigo, was named Creative Director of Kenzo, taking over from Felipe Oliveira Baptista who had been at the helm since 2019, while Camille Miceli became the first female designer to lead Emilio Pucci and Kris Van Assche departed as Creative Director of Berluti. In 2020, Kim Jones succeeded Karl Lagerfeld to continue driving the success of the Rome-based fashion house alongside Silvia Fendi. Since 2018, Kim Jones has been Creative Director of Menswear at Christian Dior and Hedi Slimane has been Artistic, Creative and Image Director at Celine. Since 2016, Maria Grazia Chiuri has been Dior’s first female Creative Director of Womenswear. At Louis Vuitton, Nicolas Ghesquière has been creating designs for women’s collections in perfect symbiosis with the values and spirit of the brand since 2013. Jonathan Anderson has been Loewe’s Creative Director since 2013. Marc Jacobs continues to lead the design team at the brand he founded in 1984.

2.4         Distribution

Controlling the distribution of its products is a core strategic priority for LVMH, particularly in luxury Fashion and Leather Goods. This control allows the Group to benefit from distribution margins, and guarantees strict control of the brand image, sales reception and environment that the brands require. It also gives the Group closer contacts with its customers so that it can better anticipate their expectations, thereby offering them unique shopping experiences.

In order to meet these objectives, LVMH has the premier international network of exclusive boutiques under the banner of its Fashion and Leather Goods brands. This network included more than 2,200 stores as of December 31, 2023.

2.5         Supply sources and subcontracting

As of 2023, Louis Vuitton has twenty-eight leather goods workshops – nineteen in France, four in Spain, three in the United States and two in Italy – which manufacture most of the Maison’s leather goods. In addition to manufacturing and model making for leather goods, Louis Vuitton’s workshops in Italy handle all development and manufacturing processes for all types of footwear, as well as development for certain accessories (textiles, jewelry and eyewear). In addition to leather goods manufacturing, Louis Vuitton’s workshops in Spain also handle all leather goods accessories (belts and straps). Louis Vuitton uses external manufacturers only to supplement its manufacturing.

Louis Vuitton purchases its materials from suppliers located around the world, with whom the Maison has established sustainable partnership relationships. The supplier strategy implemented over the last few years has enabled the Maison to meet its requirements in terms of volume, quality and innovation while engaging its suppliers in a CSR approach. This strategy is the result of a policy of focusing on and supporting the best suppliers while limiting Louis Vuitton’s reliance on them. Accordingly, the leading supplier in both the leather and metal parts markets accounts for around 20% of Louis Vuitton’s leather supplies and metal parts, respectively.

Christian Dior’s production capacity and use of outsourcing vary very widely depending on the product. In leather goods, Christian Dior works with companies outside the Group to increase its production capacity and provide greater flexibility in its manufacturing processes. In ready-to-wear and jewelry, it purchases supplies primarily from non-Group businesses.

Fendi and Loewe have leather workshops in their countries of origin, and in Italy for Celine and Berluti, which cover only a portion of their production needs. Rimowa manufactures a large proportion of its products in Germany. Generally, the subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brand’s country of origin, France, Italy and Spain.

Loro Piana manages all stages of production of its ready-to-wear collections, from the sourcing of natural fibers to the delivery of finished products to stores. Loro Piana procures its unique materials (Baby Cashmere from northern China and Mongolia, vicuña from the Andes, and extra-fine Merino wool from Australia and New Zealand) through exclusive partnerships with suppliers all over the world. Its exquisite textiles and products are then manufactured in Italy.

Moreover, in order to safeguard and develop the Fashion and Leather Goods Maisons’ access to the high-quality raw materials and expertise they need, the LVMH Métiers d’Art business segment created in 2015 invests in, and provides long-term support to, its best suppliers. In leather, for example, LVMH has been involved with the Heng Long tannery in Singapore since 2011 and has been present in Italy since 2022. Founded in 1950, it is now a leading crocodilian leather tannery. In 2012, LVMH acquired Tanneries Roux, founded in 1803 and one of the last French tanneries specializing in calfskin. More recently, LVMH has invested in the production of metal parts, notably in Jade Group, a manufacturer of metal jewelry and accessories with workshops in France and Portugal, which joined LVMH in 2021.

In 2017, LVMH formed Thélios, a joint venture with Marcolin, combining the latter’s eyewear expertise with the know-how of LVMH. At the end of 2021, LVMH purchased the stake held by Marcolin and became the sole owner of Thélios.

Lastly, fabric suppliers for the different Maisons are often Italian, but on a non-exclusive basis. The designers and style departments of each Maison ensure that manufacturing does not generally depend on patents or exclusive expertise owned by third parties.

2.6         Highlights of 2023 and outlook for 2024