LVMH's valuation

April 26, 2023
< 1 minute

By Sorin Anagnoste

Strategy | Business Models | Tech

LVMH's portfolio

Photo: Leah Grace Capitan / Seeking Alpha

Congrats to $LVMH for reaching a EUR +500 bn valuation. Here are my thoughts on their business model:
1/ Rarity will continue to outperform abundance. That is the power of artisanship.

2/ The group has a balanced ‘egg basket’, that can perform in any business environment: Fashion/Leather Goods, Spirits,  Perfumes & Jewelry

3/ Their growth strategy was two-fold: (1) focus on emerging markets and (2) M&As (including building their web 3.0 team)

4/ Some of their iconic brands have a history that started in the 19th or 18th century: Louis Vuitton (1854), Tiffany & Co. (1837), Birkenstock (1774), Hennessey (1765), Moët (1743)

5/ The LMVH group has more than 5500 stores; most in Asia (China) and the USA

6/ Although the shop experience is crucial, the omnichannel strategy is a strong point

7/ Regardless of the inflation, the groups posted a +23% in profit (YoY)

Of course, there are also some challenges, but I will address them in another post.

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