Luxury tycoon Bernard Arnault recently captivated the audience at the LVMH group’s headquarters in Paris as he revealed the company’s incredible revenue of €86.2 billion in fiscal 2023. Despite battling a cold and struggling with a hoarse voice, Arnault managed to entertain the crowd with clever anecdotes and witty remarks aimed at both colleagues and competitors.

During his speech, Arnault addressed the future governance of LVMH after confirming that his sons would be joining the board of directors. He emphatically declared that he has no intentions of leaving the company in the near future, expressing his excitement about welcoming new talent to the board. This reassurance from Arnault assured the audience of his steadfast dedication to the company’s success.

Arnault also took the opportunity to praise the outstanding performance of top executives within the group, highlighting individuals like Stéphane Bianchi, who leads LVMH’s watch-making division, and Chris de Lapuente, responsible for Sephora’s remarkable results. His remarks hinted at the careful management of growth within the organization, despite the ambitious plans of his successful deputies. This strategic move was likely aimed at managing investors’ expectations for fiscal 2024.

In regard to Louis Vuitton, Arnault specifically emphasized the brand’s exceptional watches crafted by La Fabrique du Temps in Geneva. He humorously described a high-end model featuring a design of Einstein sticking out his tongue, applauding its uniqueness and functionality. This playful anecdote showcased Arnault’s appreciation for innovation within the luxury market.

Arnault also acknowledged the success of Bulgari and Tiffany, drawing attention to the latter’s tripled operating income since its acquisition by LVMH. While he briefly touched upon the results of other brands within the fashion and leather goods division, Arnault predominantly focused on highlighting LVMH’s flagship assets. He proudly referenced an article in the Financial Times, which proclaimed Louis Vuitton and Dior as the two most powerful brands in the soft luxury sector. Arnault also stressed LVMH’s strength in the hard luxury sector, thanks to the addition of Tiffany and Bulgari to their portfolio.

When it came to potential partnerships, Arnault commended Richemont’s exceptional leadership, assuring everyone that he has no intentions of disrupting their strategy. However, he expressed his willingness to support Richemont in maintaining its independence if necessary. This gesture showcased Arnault’s commitment to collaboration and mutual success within the luxury industry.

While Arnault did not provide specific details about LVMH’s external growth plans, he did highlight the recent acquisition of Chateau Minuty. This strategic move solidifies LVMH’s position as the leading producer of Provence rosé wines. Additionally, Arnault emphasized the significance of real estate operations for the company, noting the importance of acquiring prime locations for LVMH’s businesses. He cautioned against purchasing low-quality properties at inflated prices, subtly admonishing competitors who may not fully grasp this concept.

In conclusion, Bernard Arnault’s presentation not only demonstrated his wit and strategic thinking, but it also showcased his unwavering commitment to sustainable growth within the LVMH group. With their record-breaking revenue and a portfolio of successful brands, LVMH continues to establish its dominance in the luxury market.

Useful links:
Reuters: LVMH Revenues Rise to €86Bln in 2023 Driven by Demand in Asia
Forbes: LVMH Revenue Surpasses €80 Billion on Asia Demand