Editing LVMH Moët Hennessy - Louis Vuitton, Société Européenne

== Business Description ==
LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park. The company operates 5,556 stores. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was incorporated in 1923 and is headquartered in Paris, France.

=== What's the mission of the company? ===
“Our success is only worthwhile if it is also virtuous” Success can only last if it is fair. And if it benefits everyone, then it will be even greater. What’s the point of inspiring dreams with magnificent products if they don’t meet the highest social and environmental standards? We apply those standards for the benefit of our employees and our customers of course, for our stakeholders as well, but above all for our future.” Bernard Arnault

==== 2023 Objectives to further increase LVMH's global leadership position: ====

# Confidence: continue growth momentum of the company and increase their desirability.
# Creativity and excellence: focus on creativity, distribution and quality of our products with their core values always in mind.
# Digitalisation: enrich customer's experience online and in stores.
# Commitment: preserve the environment and corporate responsibilities.
# Vigilance: maintain vigilance within current economic and geopolitical context.
# Entrepreneurial spirit.

==== LIFE 360: LVMH environmental strategy for new luxury: ====

# Biodiversity: 2030 -> 5 millions hectares of flora and fauna preserved.
# Climate: 
## 2026 -> 50% reduction in energy- related greenhouse gas (GHG) emissions.
## 2030 -> 55% reduction and/or avoidance of Scope 3 GHG emissions per unit of added value.
# Create circularity: 2030 -> 100% of new products covered by a sustainable design approach.
# Traceability: 2030 -> 100% of strategic chains covered by a dedicated traceability system.

== Macro Analysis and Trends ==
LVMH operates in the luxury goods industry. This industry is characterized by high-end products that are often handmade and of the highest quality. Luxury goods are typically associated with status and exclusivity, and they are often seen as a way to express one's personal style.

The luxury goods industry is a global industry, with markets in all major regions of the world. The largest players are LVMH, Kering (which includes brands such as Bottega Veneta, Gucci, Saint Laurent), Richemont, Chanel, Burberry, Hermès, Moncler, and Prada.

The luxury goods industry is linked to macroeconomic factors such as economic growth, exchange rates, inflation, interest rates, political stability, and technological progress. Typically, growing economies, favourable exchange rates, low interest rates, and political stability positively impact the luxury sector.<ref>https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion</ref>

However, the luxury goods industry has shown resilience in periods of economic downturns, and it is expected to deliver sustained growth in 2023, as high inflation and interest rates have a weaker impact on wealthy shoppers’ behaviour. To protect their image, luxury brand manufacturers favour high inventory levels over offering discounts. So far, inelastic demand has allowed them to pass on higher costs to customers, thus increasing their margins.

The industry has experienced significant growth in recent years, and it is expected to continue to grow in the coming years. Looking ahead, this growth will be driven by a number of macro trends:

1.      '''The growth of the middle class in emerging markets''': The growth of the middle class in emerging markets is one of the most important trends in the global economy. This trend is driving demand for luxury goods in emerging markets. Despite a disappointing first half of 2023, China still represents the largest emerging market for luxury goods its economy is expected to grow by 5.2% in 2023.<ref>https://www.reuters.com/markets/asia/sp-global-cuts-china-2023-growth-forecast-52-55-2023-06-26/</ref>

2.      '''Generational trends''': Millennials are increasingly becoming the target market for luxury goods brands. This is because millennials have more disposable income than previous generations, and they are more likely to spend money on luxury goods. Additionally, “Gen Z” are expected to represent one-third of the market by 2030 and their spending is set to grow three times faster than for other generations until 2030.<ref>https://www.bain.com/about/media-center/press-releases/2022/global-luxury-goods-market-takes-2022-leap-forward-and-remains-poised--for-further-growth-despite-economic-turbulence/#:~:text=Global%20luxury%20goods%20market%20takes%202022%20leap%20forward,60%25%2B%20market%20growth%20to%202030%20...%20More%20items</ref> 

3.      '''The growth of online shopping''': The growth of online shopping is another important trend that is impacting the luxury goods industry. Online shopping is making it easier for consumers to buy luxury goods from around the world.

4.      '''The demand for sustainable luxury goods''': There is a growing demand for sustainable luxury goods. This is because consumers are becoming more aware of the environmental impact of luxury goods production.

== Key Professionals ==
{| class="wikitable"
!'''Name'''
!'''Title''' 
|-
|Arnault, Bernard
|Chairman & CEO
|-
|Guiony, Jean-Jacques
|Chief Financial Officer
|-
|Kuhn, Bernard
|General Counsel
|-
|Bouillonnec, Yann
|Vice President of Sales
|-
|Gaemperle, Chantal
|Group Executive Vice President of Human Resources & Synergies
|-
|Arnault, Antoine
|Group Chief Image & Environment Officer and Director
|-
|Arnault, Frederic
|Chief Executive Officer of TAG Heuer
|-
|Bazire, Nicolas
|Senior VP of Development & Acquisitions and Director
|-
|Beaufils, Benjamin
|President of North American Operations
|-
|Belloni, Antonio
|Group MD & Director
|-
|Bianchi, Stephane
|Head of LVHM's Watch & Jewelry Unit
|-
|Das, Ipsita
|Managing Director of India
|-
|de Lapuente, Christopher
|Chairman & CEO of Selective Retailing Division
|-
|Guerra, Andrea
|Head of Hospitality & Restaurant Business
|-
|Mukherji, Shantanu
|Managing Director od L Catterton
|-
|Rogers, Ian
|Chief Digital Officer
|-
|Voisin, Jean-Baptiste
|Chief Strategy Officer
|-
|Beccari, Pietro
|Chairman & CEO of Louis Vuitton
|-
|Boillot, Laurent
|CEO & President of Guerlain
|-
|Brocart, Sophie
|Chief Executive Officer of Jean Patou
|-
|Jamet, Marc-Antoine
|General Secretary
|-
|Schaus, Philippe Paul Auguste
|Chief Executive Officer of Moët Hennessy - Wines & Spirits Division
|-
|Toledano, Sidney
|Chairman and CEO of the Fashion Group
|-
|Hollis, Christopher
|Director of Financial Communications
|-
|Stalla-Bourdillon, Bertrand
|Group Vice President of Retail Development
|}

== Board Members ==
{| class="wikitable"
! rowspan="2" |'''Name'''
! rowspan="2" |'''Title'''
! rowspan="2" |'''Type'''
! colspan="2" |'''Tenure'''
|-
!Start date
!End date
|-
|Arnault, Bernard
|Chairman & CEO
|Internal
|1988
|Present
|-
|Arnault, Antoine
|Group Chief Image & Environment Officer and Director
|Internal
|2006
|Present
|-
|Bazire, Nicolas
|Senior VP of Development & Acquisitions and Director
|Internal
|1999
|Present
|-
|Belloni, Antonio
|Group MD & Director
|Internal
|2002
|Present
|-
|Beccari, Pietro
|Chairman & CEO of Louis Vuitton
|Internal
|2018
|Present
|-
|Toledano, Sidney
|Chairman and CEO of the Fashion Group
|Internal
|2018
|Present
|-
|de Silguy, Yves-Thibault
|Independent Director
|External
|2009
|Present
|-
|Gaymard, Clara
|Independent Director
|External
|2016
|Present
|-
|Valla, Natacha
|Independent Director
|External
|2020
|Present
|-
|de Croisset, Charles
|Lead Independent Director
|External
|2008
|Present
|-
|Arthus-Bertrand, Yann
|Member of Advisory Board
|External
|2019
|Present
|-
|Aumont, Dominique
|Employees Representing Director
|External
|2020
|Present
|-
|Belloeil-Melkin, Marie-Véronique
|Employees Representative Director
|External
|2020
|Present
|-
|Chassat, Sophie
|Independent Director
|External
|2018
|Present
|-
|de Chalon, Marie-Laure Sauty
|Independent Director
|External
|2014
|Present
|-
|Della Valle, Diego
|Member of Advisory Board
|External
|2002
|Present
|-
|Gancia, Delphine Arnault
|Director
|External
|2020
|Present
|-
|Kravis L.L.D., Marie- Josée
|Independent Director
|External
|2011
|Present
|-
|Mignon, Laurent
|Independent Director
|External
|2023
|Present
|-
|Powell KCMG, Charles David
|Member of Advisory Board
|External
|2020
|Present
|-
|Védrine, M. Hubert
|Independent Director
|External
|2004
|Present
|}

== Committees ==
{| class="wikitable"
!'''Committee'''
!'''Name'''
!'''Title'''
|-
| rowspan="4" |Audit Committee
|Gaymard, Clara
|Independent Director
|-
|de Chalon, Marie-Laure S.
|Independent Director
|-
|de Croisset, Charles
|Lead Independent Director
|-
|de Silguy, Yves-Thibault
|Independent Director
|-
| rowspan="4" |Compensation Committee
|Valla, Natacha
|Independent Director
|-
|Chassat, Sophie
|Independent Director
|-
|de Croisset, Charles
|Lead Independent Director
|-
|Kravis, Marie- J.
|Independent Director
|-
| rowspan="4" |Corporate Governance Committee
|Valla, Natacha
|Independent Director
|-
|Chassat, Sophie
|Independent Director
|-
|de Croisset, Charles
|Lead Independent Director
|-
|Kravis, Marie- J.
|Independent Director
|-
| rowspan="4" |Other Committee
|de Silguy, Yves-Thibault
|Independent Director
|-
|de Chalon, Marie-Laure S.
|Independent Director
|-
|Gancia, Delphine A.
|Director
|-
|Védrine, M. H.
|Independent Director
|}

== ESG - Materiality Matrix ==
{| class="wikitable"
!'''Particulars'''
!'''Wines and Spirits'''
!'''Fashion andLeather Goods'''
!'''Perfumes and Cosmetics'''
!'''Watches and Jewelry'''
!'''SelectiveRetailing'''
|-
|'''State of energy resources and climate change'''
| -Grape growing and yield
-Packaging production
-Distillation
-Transportation of products
-Soil erosion
| -Store lighting, air conditioning and location
-Transportation of products and carbon taxes
-Production of resources needed to manufacture products:
-Plant fibers used for textiles (cotton, etc.) Leather, including exotic leather, Fur, Wool
-Customer expectations in relation to more sustainable products
-Renewable energy costs
| -Packaging production
-Store lighting, air conditioning and location
-Transportation of products and carbon taxes
-Customer expectations in relation to more sustainable products
-Renewable energy costs
| -Store lighting, air conditioning and location
-Renewable energy costs
| -Store lighting, air conditioning and location
-Transportation of products
-Renewable energy costs
|-
|'''Impact on water resources'''
| -Water consumption (vineyard irrigation in Australia, New Zealand, Argentina and California) 
-Production of effluents containing organic matter during winemaking and distillation
| -Water consumption (crocodilian farms and tanneries)
-Production Ofeffluents containing organic matter
| - Water consumption (production and transformation of raw materials)
| -Water consumption during the extraction of mineral resources needed to manufacture products
-Production of effluents containing mineral matter
|
|-
|'''Impact on ecosystems (including deforestation and desertification) and depletion of natural resources'''
| -Production of plant resources needed for other production processes (grape vines, barley, rye, etc.)'
- Protecting biodiversity
| -Production of resources needed to manufacture products:
- Plantfibers used for textiles (cotton, etc.) Leather, including exotic leather Fur, Wool, Eider down
-Farming and trapping practices concerning raw materials of animal origin Protecting biodiversity
| -Production of plant resources needed to manufacture products (rose, jasmine, etc.)
-Protecting biodiversity
| -Extraction of resources needed to manufacture products:
- Gems and precious metals
-Exotic leather
-Farming and trapping practices concerning raw materials of animal origin
-Protecting biodiversity
|
|-
|'''Waste production'''
| -Production of residues from winemaking or distillation processes and packaging waste
-Circular economy
| -Unused raw materials, obsolete and unsold products, window displays and events
-Customer expectations in relation to more sustainable products
-Circular economy
| -Point-of-sale advertising, packaging waste, and obsolete and unsold products Circular economy
| -Scrap metal
- Circular economy
| -Point-of-sale advertising, packaging waste, and obsolete and unsold products
-Circular economy
|}


== Market ==

=== Total Addressable Market ===
Here, the total addressable market (TAM) is defined as the luxury goods global market, and based on a number of assumptions, it is estimated that the size of the market as of today (6<sup>th</sup> July 2023) in terms of revenue, is US$354.80bn, and is expected to grow at a CAGR of 3,38% in the forecast period of 2023- 2028.<ref name=":0">Luxury Goods - Worldwide | Statista Market Forecast</ref>

== Financial Highlights ==
{| class="wikitable"
!'''Key Consolidated Data ''(EUR Millions)'''''
!'''2020'''
!'''2021'''
!'''2022'''
|-
|Revenue
|44,651
|64,215
|79,184
|-
|Profit from recurring operations
|8,305
|17,151
|21,055
|-
|Net profit
|4,955
|12,698
|14,751
|-
|Net profit, Group share
|4,702
|12,036
|14,084
|-
|Cash from operations before changes in working capital
|13,997
|22,621
|26770
|-
|Operating investment
|2.478
|2,664
|4,969
|-
|Operating free cash flow
|6,117
|13,531
|10,113
|-
|Total equity <sup>(a)</sup>
|38,829
|48,909
|56,604
|-
|Net financial debt <sup>(b)</sup>
|4,241
|9,607
|9201
|-
|Adjusted net financial debt/Equity ratio
|10.9%
|19.60%
|14.30%
|}
<small>''(a) Including minority interests''</small>

<small>''(b) Excluding “Lease liabilities” and “Purchase commitments for minority interests’ shares” included in “Other non-current liabilities”''</small>

=== Business Group - Highlights ===
{| class="wikitable"
!'''Revenue by business group ''(EUR Millions)'''''
!'''2020'''
!'''2021'''
!'''2022'''
|-
|Wines and Spirits
|4,755
|5,974
|7099
|-
|Fashion and Leather Goods
|21,207
|30,896
|38,648
|-
|Perfumes and Cosmetics
|5,248
|6,608
|7722
|-
|Watches and Jewelry
|3,356
|8,964
|10,581
|-
|Selective Retailing
|10,155
|11,754
|14,852
|-
|Other activities and eliminations
| -70
|19
|281
|-
|'''Total'''
|'''44,651'''
|'''64,215'''
|'''79,184'''
|}
{| class="wikitable"
!'''Profit from recurring operations by business group''(EUR millions)'''''
!'''2020'''
!'''2021'''
!'''2022'''
|-
|Wines and Spirits
|1,388
|1,863
|2,155
|-
|Fashion and Leather Goods
|7,188
|12,842
|15,709
|-
|Perfumes and Cosmetics
|80
|684
|660
|-
|Watches and Jewelry
|302
|1,679
|2,017
|-
|Selective Retailing
| -203
|534
|788
|-
|Other activities and eliminations
| -450
| -451
| -274
|-
|'''Total'''
|'''8,305'''
|'''17,151'''
|'''21,055'''
|}

== Financial Statements<ref>lvmh_2022_annual-report.pdf (lvmh-static.com)</ref> ==
=== Historic ===
 
==== Most recent quarter ====
Comparing Q1 2023 to Q1 2022, in euro millions, the total LVMH group has experienced a 17% reported and organic increase in revenue from 18,003 to 21,035 respectively. The Wines & Spirits business group recorded a revenue growth of 3% with an organic revenue growth of 14% of the Champagne & Wines sector, due to a strong start to year driven by positive price effect, and a 5% organic revenue decrease of the Cognac & Spirits sector, due to China recovering from Covid impact while US impacted by softer economic environment. The Fashion & Leather Goods business group recorded a revenue growth of 18%, due to exceptional performance, driven by creativity and iconic products, specially in Louis Vuitton. The greatest revenue evolution was observed in the Selective Retailing sector, where an increase of 28% was recorded due to Sephora's strong performance, DFS benefiting from recovery in travel, notably in Asia and Le Bon Marché with its creative animations.<ref>Présentation PowerPoint (lvmh-static.com)</ref>

==== Most recent year ====
For the fiscal year 2022, ending on the 31st of December, LVMH reported an annual revenue of 79.2 billion euros a 23.3% increase over the previous fiscal year, 2021, as can be seen hereunder. As well as a 17% increase in the groups share of net profit, increasing from 12.036 billion euros in 2021 to 14.084 billion euros in 2022. 

Other important financial indicators include:<ref>Présentation PowerPoint (lvmh-static.com)</ref>

* a decrease in operating free cash flow by 3.418 billion euros in comparison with 2021.
* dividend of 12 euros in 2022, increased by 20% compared to 2021.
* Gearing of 16% compared to a gearing of 20% in 2021. (Gearing: the ratio of a company's debt to equity)

=== LVMH's Annual Income Statement ===
{| class="wikitable"
!'''EUR''' €, Millions, except for earnings per share data
!'''2020'''
!'''2021'''
!'''2022'''
|-
!                                     Period Ending:
!31-Dec
!31-Dec
!31-Dec
|-
|'''Revenue'''
|'''44,651'''
|'''64,215'''
|'''79,184'''
|-
|Revenue Growth (year to year)
|<nowiki>-16.80%</nowiki>
|43.82%
|23.31%
|-
|Cost of Goods and Services
|<nowiki>-15,871</nowiki>
|<nowiki>-20,355</nowiki>
|<nowiki>-24,988</nowiki>
|-
|'''Gross Margin'''
|'''28,780'''
|'''43,860'''
|'''54,196'''
|-
|Marketing and selling expenses
|<nowiki>-16,792</nowiki>
|<nowiki>-22,308</nowiki>
|<nowiki>-28,151</nowiki>
|-
|General and administrative expenses
|<nowiki>-3,641</nowiki>
|<nowiki>-4,414</nowiki>
|<nowiki>-5,027</nowiki>
|-
|Income/(Loss) from joint ventures
|<nowiki>-42</nowiki>
|13
|37
|-
|'''Profit from recurring operations'''
|'''8,305'''
|'''17,151'''
|'''21,055'''
|-
|Other operating income and expenses
|<nowiki>-333</nowiki>
|4
|<nowiki>-54</nowiki>
|-
|'''Operating profit'''
|'''7,972'''
|'''17,155'''
|'''21,001'''
|-
|Cost of net financial debt
|<nowiki>-35</nowiki>
|41
|<nowiki>-17</nowiki>
|-
|Interest of lease liabilities
|<nowiki>-281</nowiki>
|<nowiki>-242</nowiki>
|<nowiki>-254</nowiki>
|-
|Other financial income and expenses
|<nowiki>-292</nowiki>
|254
|<nowiki>-617</nowiki>
|-
|'''Net financial income/(expense)'''
|'''-608'''
|'''53'''
|'''-888'''
|-
|Income Tax Expense
|<nowiki>-2,409</nowiki>
|<nowiki>-4,510</nowiki>
|<nowiki>-5,362</nowiki>
|-
|'''Net Income to Company'''
|'''4,955'''
|'''12,698'''
|'''14,751'''
|-
|Minority Interest in Earnings
|<nowiki>-253</nowiki>
|<nowiki>-662</nowiki>
|<nowiki>-667</nowiki>
|-
|'''Net Income to Stockholders'''
|'''4,702'''
|'''12,036'''
|'''14,084'''
|-
|
|
|
|
|-
|'''Basic EPS, (EUR)'''
|'''9.34'''
|'''23.90'''
|'''28.05'''
|-
|Basic Weighted Average Shares Outstanding
|503,679,272
|503,627,708
|502,120,694
|-
|'''Diluted EPS (EUR)'''
|'''9.33'''
|'''23.89'''
|'''28.03'''
|-
|Diluted Weighted Average Shares Outstanding
|504,210,133
|503,895,592
|502,480,100
|-
|
|
|
|
|-
|'''EBITDA'''
|'''13,780'''
|'''23,280'''
|'''26,720'''
|}
[[File:LVMH Annual Income Statement.png|left|thumb|465x465px]]



















=== LVMH's Annual Balance Sheet ===
{| class="wikitable"
!'''Year end date (31/12)'''
!'''2020'''
!'''2021'''
!'''2022'''
|-
|'''Assets''' (EUR millions)
|
|
|
|-
|Brands and other intangible assets
|17,012
|24,551
|25,432
|-
|Goodwill
|16,042
|25,904
|24,782
|-
|Property, plant and equipment
|18,224
|20,193
|23,055
|-
|Right-of-use assets
|12,521
|13,705
|14,615
|-
|Investment in joint ventures and associates
|990
|1,084
|1,066
|-
|Non-current available for sale financial assets
|739
|1,363
|1,109
|-
|Other non-current assets
|845
|1,054
|1,186
|-
|Deferred tax
|2,325
|3,156
|3,661
|-
|'''Non-current Assets'''
|'''68,698'''
|'''91,010'''
|'''94,906'''
|-
|Inventories and work in progress
|13,016
|16,549
|20,319
|-
|Trade accounts receivable
|2,756
|3,787
|4,258
|-
|Income taxes
|392
|338
|375
|-
|Other current assets
|3,846
|5,606
|7,488
|-
|Cash and cash equivalents
|19,963
|8,021
|7,300
|-
|'''Current Assets'''
|'''39,973'''
|'''34,301'''
|'''39,740'''
|-
|'''Total Assets'''
|'''108,671'''
|'''125,311'''
|'''134,646'''
|-
|
|
|
|
|-
|'''Liabilities and Equities''' (EUR millions)
|
|
|
|-
|Long-term borrowing
|14,065
|12,165
|10,380
|-
|Non-current lease liabilities
|10,665
|11,887
|12,776
|-
|Non-current provisions and other liabilities
|3,322
|3,980
|3,902
|-
|Deferred tax
|'''5,481'''
|'''6,704'''
|'''6,952'''
|-
|Purchase commitments for minority interests' shares
|'''10,991'''
|'''13,677'''
|'''12,489'''
|-
|'''Non-current liabilities'''
|'''44,524'''
|'''48,413'''
|'''46,499'''
|-
|Short-term borrowing
|10,638
|8,075
|9,359
|-
|Current lease liabilities
|2,163
|2,387
|2,632
|-
|Trade accounts receivable
|5,098
|7,086
|8,788
|-
|'''Income taxes'''
|'''721'''
|'''1,267'''
|'''1,211'''
|-
|'''Current Provisions and other liabilities'''
|'''6,698'''
|'''9,174'''
|'''9,553'''
|-
|'''Current Liabilities'''
|'''25,318'''
|'''27,989'''
|'''31,543'''
|-
|'''Total Liabilities''' 
|'''69,842'''
|'''76,402'''
|'''78,042'''
|-
|Equity, Group Share
|37,412
|47,119
|55,111
|-
|Minority Interests
|1,417
|1,790
|1,493
|-
|'''Total Equity'''
|'''38,829'''
|'''48,909'''
|'''56,604'''
|-
|'''Total liabilities and Equity'''
|'''108,671'''
|'''125,311'''
|'''134,646'''
|-
|'''Total Debt'''
|'''37,531'''
|'''34,514'''
|'''35,147'''
|}
[[File:LVMH Balance Sheet.png|left|thumb|443x443px]]




















=== LVMH's Cash Flow Statement ===
{| class="wikitable"
!'''EUR''' €,  Millions
!'''2020'''
!'''2021'''
!'''2022'''
|-
|Cash  flow operating activities
|
|
|
|-
|Operating  profits
|7,972
|17,155
|21,001
|-
|Income/loss  and dividends received from joint ventures and associates
|64
|41
|26
|-
|Net  increase in depreciation, amortisation and provisions
|3,478
|3,139
|3,219
|-
|Depreciation  of right-of-use assets
|2,572
|2,691
|3,007
|-
|Other  adjustments and computed expemses
|<nowiki>-89</nowiki>
|<nowiki>-405</nowiki>
|<nowiki>-483</nowiki>
|-
|'''Cash  from operations before changes in working capital'''
|'''13,997'''
|'''22,621'''
|'''26,770'''
|-
|Cost of  net financial debt: interest paid
|<nowiki>-58</nowiki>
|71
|<nowiki>-74</nowiki>
|-
|Lease  liabilites: interest paid
|<nowiki>-290</nowiki>
|<nowiki>-231</nowiki>
|<nowiki>-240</nowiki>
|-
|Tax  paid
|<nowiki>-2,385</nowiki>
|<nowiki>-4,239</nowiki>
|<nowiki>-5,604</nowiki>
|-
|Change  in working capital
|<nowiki>-367</nowiki>
|426
|<nowiki>-3,019</nowiki>
|-
|'''Net  cash from/ (used in) operating activities'''
|'''10,897'''
|'''18,648'''
|'''17,833'''
|-
|Cash  flow investing activities
|
|
|
|-
|Operating  investments
|<nowiki>-2,478</nowiki>
|<nowiki>-2,664</nowiki>
|<nowiki>-4,969</nowiki>
|-
|Purchase  and proceeds from sale of consolidated investments
|<nowiki>-536</nowiki>
|<nowiki>-13,226</nowiki>
|<nowiki>-809</nowiki>
|-
|Dividends  received
|12
|10
|7
|-
|Tax  paid relates to non-current available for sale financial assets
|'''-'''
|'''-'''
|'''-'''
|-
|Purchase  and proceeds from sale of non-current available for sale financial assets
|63
|<nowiki>-99</nowiki>
|<nowiki>-149</nowiki>
|-
|'''Net  cash from/ (used in) investing activities'''
|'''-2,939'''
|'''-15,979'''
|'''-5,920'''
|-
|Cash  flow financing activities
|
|
|
|-
|Interim  and final dividends paid
|<nowiki>-2,799</nowiki>
|<nowiki>-4,161</nowiki>
|<nowiki>-6,774</nowiki>
|-
|Purchase  and proceeds from sale of minority interests
|<nowiki>-67</nowiki>
|<nowiki>-435</nowiki>
|<nowiki>-351</nowiki>
|-
|Other  equity-related transaction
|27
|<nowiki>-552</nowiki>
|<nowiki>-1,604</nowiki>
|-
|Proceeds  from borrowings
|17,499
|251
|3,774
|-
|Repayment  of borrowing
|<nowiki>-5,024</nowiki>
|<nowiki>-6,413</nowiki>
|<nowiki>-3,891</nowiki>
|-
|Repayment  of lease liabilities
|<nowiki>-2,302</nowiki>
|<nowiki>-2,453</nowiki>
|<nowiki>-2,751</nowiki>
|-
|Purchase  and proceeds from sale of current available for sale financial assets
|69
|<nowiki>-1,393</nowiki>
|<nowiki>-1,088</nowiki>
|-
|'''Net  cash from/ (used in) financing activities'''
|'''7,403'''
|'''-15,156'''
|'''-12,685'''
|-
|'''Effect  of exchange rate changes'''
|<nowiki>-1,052</nowiki>
|498
|55
|-
|'''Net increase/  decrease in cash and cash equivalents'''
|18,773
|<nowiki>-43,124</nowiki>
|<nowiki>-717</nowiki>
|-
|Cash  and cash equivalents at the beginning of period
|5,497
|19,806
|7,817
|-
|Cash  and cash equivalents at end of period
|19,806
|7,817
|7,100
|-
|Total  tax paid
|<nowiki>-2,501</nowiki>
|<nowiki>-4,464</nowiki>
|<nowiki>-5,933</nowiki>
|-
|
|
|
|
|-
|'''Alternative  performance measure'''
|
|
|
|-
|'''EUR''' €,  Millions
|'''2020'''
|'''2021'''
|'''2022'''
|-
|Net  cash from operating activities
|10,897
|18,648
|17,833
|-
|Operating  investments
|<nowiki>-2,478</nowiki>
|<nowiki>-2,664</nowiki>
|<nowiki>-4,969</nowiki>
|-
|Repayment  of lease liabilities
|<nowiki>-2,302</nowiki>
|<nowiki>-2,453</nowiki>
|<nowiki>-2,751</nowiki>
|-
|'''Operating  free cash flow'''
|'''6,117'''
|'''13,531'''
|'''10,113'''
|}

=== Financial Forecast ===

==== What are the assumptions used to estimate the financial forecasts? ====
{| class="wikitable"
!Description
!Value
!Commentary
|-
|What’s the estimated current size of the total addressable market?
|$354,800,000,000
|The total addressable market is defined as the luxury goods  global market and , it is estimated that the size of the market as of today (6<sup>th</sup>  July 2023) in terms of revenue, is US$354.80bn.<ref name=":0" />
|-
|What growth stage is the company in?
|Maturity stage
|Research shows that a company goes through four/ five stages  of cash flow growth. A key way to determine the stage which a company is in  by examining the cash flow patterns. The Stockhub users estimate that with  LVMH’s cash flow patterns over the past 4 years: (+) operating cash flow, (-)  investing cash flow and (+/-) but with a (-) average of it’s financing cash  flow. LVMH is in its maturity stage of growth.
|-
|What is the estimated company lifespan?

Group - LVMH

|80 years
|LVMH employees approximately 196,000, making the company a  large organisation, research has proven that the average life span of a large  company is approximately 50 years.<ref>Stadler, Enduring Success, 3–5.</ref> Due to LVMHs exponential revenue growth in  the last 36 years, and assuming that the company is in the maturity stage of  growth which is approximately 50% of a companies lifecycle,<ref name=":1">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref> I am going to assume a life span of 80 years.
|-
|What is the estimated annual growth of the total addressable  market over the lifecycle of the company?
|3.38%
|The market is estimated to grow at a 3.38% CAGR (Compound Annual  Growth Rate) in the forecast period of 2023- 2028.<ref name=":0" />
|-
|What is the estimated company peak market share?
|Approximately 25%
|Take LVMH’s revenue as the revenue specified at the end of 2022,  which was 79.2 billion euros. Assuming a currency exchange rate as of 31<sup>st</sup>  Dec 2022 EUR/USD of 1.07. Resulting in a companies annual revenue of 84.744  billion USD.
|-
|Which distribution function do you want to use to estimate company  revenue?
|Gaussian
|Research has suggested that the revenue pattern of companies  is similar to the pattern produced by the gaussian distribution.<ref name=":1" />
|-
|What is the estimated standard deviation of company revenue?
|
|
|-
|
|
|
|}

==== Economic links to cash flow patters ====
{| class="wikitable"
!Cash flow  type
!Introduction
!Growth
!Shake out
!Mature
!Decline
|-
!Operating 
| -
| +
| +/-
| +
| -
|-
!Investing
| -
| -
| +/-
| -
| +
|-
!Financing
| +
| +
| +/-
| -
| +/-
|}




== Valuation ==
[[File:Screenshot 2023-07-06 at 11.10.01.png|thumb|Unlevered Free Cash Flow [[File:Screenshot 2023-07-06 at 11.10.11.png|thumb|Fixed Assets[[File:Screenshot 2023-07-06 at 11.10.21.png|thumb|Net Working Capital[[File:Screenshot 2023-07-06 at 11.10.54.png|thumb|Weighted Average of Capital[[File:Screenshot 2023-07-06 at 11.11.11.png|thumb|Implied Share Price and Sensitivity Table[[File:Screenshot 2023-07-06 at 11.59.35.png|thumb|Base Case, Bear Case, Bull Case]]]]]]]]]]]]
In the following section, there are 2 valuation methods, DCF model and the relative valuation. 

For the DCF model, the base case implied share price is $1175.92, which has a 27.64% potential upside; the bull case implied share is 1436.27, which has a 55.90% upside; the bear case implied share is 782.49, which has a 15.07% downside. Therefore, for a weighted average of 50% bull case, 25% bull case and 25% bear case, we get 1142.65, which has a 31.09% upside. We take these weighted average percentage is because the inflation rate remains high, the FED has 95% chance to increase the interested rate in the next FOMC meeting, due to this uncertainty, a conservative prediction is applied. Also, we assumed that all the growth is constant in the next 5 years of projection, taking the average from the past 5 years for the base case. The bull case and bear case is calculated with the earnings in EV/EBITDA and Net Debt/EBITDA, and the Free Cash Flow Equity Yield based on their free cash flow, both earning price target and the FCFE price target are weighted 50% each. Throughout the calculation, we obtained the WACC with 13.33% and the CAPM is 14.08%.

For the relative valuation,  






















== Growth Drivers and Catalysts ==
LVMH has a strong set of growth catalysts that are attractive to potential investors. 

Since the beginning of COVID in 2019 and impact on retail shopping, LVMH recognised the trend as luxury goods moved towards digital transformation and invested heavily in its e-commerce. Their commitment to online shopping extended its luxury shopping experience to its customers at home, building a stronger brand image and customer loyalty.  Strong focus on marketing campaigns throughout the pandemic saw the group out compete competitors in terms of growth throughout 2020, attributed to its sales and presence in emerging markets, despite the closure of stores.

The groups presence in emerging markets is, and continues to be, a massive contributor to LVMH growth. As economies stable and disposable income rises, luxury product available to a broader consumer base. LVMH strategic expansion into regions of Asia, such as China and Japan, and Brazil has allowed the group to capture new markets and grow its customer base. In 2022, revenue rose 23% across all markets and branches of LVMH, highlighting its ability to perform exceptionally in years effected by economic and geopolitical challenges. 

LVMH strong and continued performance in the market can also be credited to its offering of a wide range of high end products. This way, the group captures attention in many markets such as; wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery and selective retailing (all sectors saw revenue growth in 2022). The recent acquisition of Tiffany & Co. in 2021 for $15.8 billion is also evidence of the groups continued strong performance in uncertain economic times and the groups focus on diversification, reducing its reliance on specific products and mitigating risk associated with market conditions. LVMH diversification and ability to innovate new products keeps it at the forefront of the luxury goods market.

After a successful year in 2022, LVMH is confident in its pursuit of brand development and innovation through 2023. 

Recent development includes a partnership with Epic Games, creator of Unreal Engine and Fortnite, to help transforms the groups creative pipeline and brings a new type of customer base and immersive product experience. The partnership allows the utilisation of Epic Games powerful 3D creation tools to offer visual experiences, opening new digital ecosystems for advertisement campaigns and digital stores.

== Competitors Comparison ==
'''LVMH Overview''': In 2023, LVMH reported a Q1 FY 2023 revenue of 21 billion euros, showing a significant increase of 17% compared to the same period in 2022. LVMH's strength lies in its high level of customer loyalty and diverse portfolio of 75 prestigious brands across various luxury sectors.

'''Richemont Overview''': Richemont, a key competitor of LVMH, reported a sales revenue of 19.95 billion euros in the first quarter of FY 2023. Richemont's focus on watches and jewelry, particularly through brands like Cartier, IWC, and Van Cleef & Arpels, has contributed to its continued growth.

'''Kering Overview''': Kering, another significant competitor of LVMH, reported a revenue of 5.077 billion euros in the first quarter of FY 2023. Kering's most prominent brand, Gucci, contributes significantly to its overall revenue. However, Kering has a weak growth rate of 1% compared to Q1 2022 suggests that its performance is not as strong as that of LVMH and Richemont.

'''Strengths of Richemont:'''

1. Focus on watches and jewelry: Richemont's specialization in these sectors has allowed it to become a leader in the industry, attracting customers who specifically seek luxury timepieces and high-end jewelry, and its emphasis on core businesses resonates well with customers who value the culture, history, and pioneer status in the industry.

2. Extensive collection of luxury brands: With 26 luxury brands and businesses in its portfolio, Richemont offers a wide range of options to cater to different consumer preferences.

3.  Richemont's commitment to environmental, social, and governance (ESG) practices in this year is highly attractive to customers and aligns with current policies and expectations.

'''Strengths of Kering:'''

1. Customer loyalty to specific brands: Kering has built strong brand loyalty, particularly with Gucci, Bottega Veneta, and Saint Laurent. This customer loyalty contributes to a consistent customer base and brand recognition.

Weaknesses of LVMH in comparison to Richemont:

1. Less competitive in the jewelry industry: LVMH's presence in the jewelry sector is relatively weaker compared to Richemont. To capture a larger market share and increase profitability, LVMH should consider expanding its focus on jewelry.

2. Sustainability focus: Customers are increasingly concerned about sustainability, and products marketed as environmentally friendly have gained traction.

'''Conclusion''':

1. Richemont could be a big competitor: Based on the revenue data and performance analysis, LVMH remains the market leader in the luxury industry. However, it faces major challenges from Richemont, each with its own strengths and weaknesses. LVMH should focus on expanding its presence in the jewelry industry to compete more effectively with Richemont. Besides, The decision of Richemont to reject the acquisition proposal from LVMH could potentially impact Richemont's stock and attract more attention, particularly from investors who value the "more boutique in core business" mindset.

2. Geographical Factor: LVMH has a strong geographical presence in the Asia Pacific region, with most sectors and revenue generated from Asia in 2022. Particularly in China, where the Covid policies have allowed for reopening, the spending power of Chinese consumers continues to rise. The total revenue in Asia will be very significant in 2023. Richemont also generates a significant portion of its revenue from the Asian market. The 2023 total revenue in Asia Pacific of Richemont would be positive to be expected. On the other hand, Kering's performance has been negative, experiencing a decline of 7% from Q1 2022 to Q4 2022. The pace of growth was well below that of competitors.

Overall, LVMH's performance is expected to continue to increase, and there is optimism regarding its total revenue for 2023.

== Risks ==
Investing in any company, including LVMH Moët Hennessy, carries various risk factors. These risks should be carefully considered by potential investors before making a decision. Some risks specifically associated with LVMH Moët Hennessy might include:

# '''Economic Fluctuations:''' As a luxury goods company, LVMH's success is strongly correlated with the global economy's performance. During periods of economic downturn, consumer spending, especially on luxury items, often decreases. This could negatively impact LVMH's revenues and profits.
# '''Foreign Exchange Risk:''' Since LVMH operates worldwide, it's exposed to fluctuations in various currencies. If the euro strengthens against other currencies, it could reduce the company's profits when overseas earnings are converted back into euros.
# '''Fashion Trends and Consumer Preferences:''' The fashion industry is notably fickle, with trends and consumer tastes constantly changing. If LVMH fails to anticipate or adapt to these changes, its brands might lose popularity, impacting the company's financial performance.
# '''Regulatory Risks:''' As a global company, LVMH must comply with a wide array of regulations and laws across multiple jurisdictions. Changes in these regulations, including import/export laws, environmental laws, and taxation policies, could affect its operations.
# '''Brand Reputation:''' The value of LVMH's brands is one of its key assets. Any events that damage these brands' reputations – such as product quality issues, scandals involving brand ambassadors, or negative environmental or social impacts – could harm LVMH's business.
# '''Competition:''' The luxury goods market is highly competitive. LVMH competes with other large luxury groups, as well as smaller, more nimble brands and emerging digital-native brands. If LVMH can't maintain its competitive advantage, it could lose market share.
# '''Supply Chain Disruptions:''' LVMH relies on a complex global supply chain. Disruptions to this chain – such as those caused by natural disasters, geopolitical events, or pandemics – could impact its ability to produce and distribute its products.
# '''Intellectual Property Risks:''' As with many companies in the fashion industry, LVMH faces risks from counterfeiting and other intellectual property violations, which could harm its brands and its financial performance.

== References and notes ==
__INDEX__
<references />
[[Category:Competitors Comparasion]]
@@ Line 1: / Line 1: @@
-{{Infobox company
-| name = LVMH Moët Hennessy Louis Vuitton<!--full legal name-->
-| trade_name = LVMH
-| logo = LVMH-black.png
-| image = 22 avenue Montaigne Paris.jpg
-| image_size = 250px
-| image_caption = Headquarters in Paris
-| type = [[Public company|Public]] (''[[Societas Europaea]]'')<ref name="Infogreffe" />
-| traded_as = {{EuronextParis|MC|FR0000121014|XPAR}}<br/>[[CAC 40|CAC 40 Component]]
-| ISIN = {{ISIN|sl=n|pl=y|FR0000121014}}
-| predecessors = {{ubl|[[Moët & Chandon]]|[[Hennessy]]|[[Louis Vuitton]]}}
-| num_locations = 5,664 stores (2022)<ref name="lvmh-fy22" />
-| area_served = Worldwide
-| key_people = [[Bernard Arnault]] {{small|([[chairman]] and [[Chief executive officer|CEO]])}} <br /> [[Delphine Arnault]] {{small|(director)}} <br /> Antonio Belloni {{small|(MD, Deputy CEO)}}<br /> Andrew Lovell{{small| (MD)}}
-| industry = [[Luxury goods]]
-| founders = [[Bernard Arnault]]<br /> Alain Chevalier <br/> [[Henry Racamier]]
-| products = {{hlist|[[Clothing]]|[[cosmetics]]|[[Fashion accessory|fashion accessories]]|[[Jewellery|jewelry]]|[[perfume]]s|[[Distilled beverage|spirits]]|[[watch]]es|[[wine]]s}}
-| services = [[Department store]]s
-| revenue = {{increase}} €79.2 billion (2022)<ref name="lvmh-fy22">{{cite web|url=https://r.lvmh-static.com/uploads/2023/03/lvmh_2022_annual-report.pdf|title=LVMH 2022 Annual Report |date=June 8, 2023}}</ref>
-| operating_income = {{increase}} €21.1 billion (2022)<ref name="lvmh-fy22" />
-| net_income = {{increase}} €14.1 billion (2022)<ref name="lvmh-fy22" />
-| assets = {{increase}} €135 billion (2022)<ref name="lvmh-fy22" />
-| equity = {{increase}} €56.6 billion (2022)<ref name="lvmh-fy22" />
-| num_employees = 196,006 (2022)<ref name="lvmh-fy22" />
-| subsid = [[#Subsidiaries|List of subsidiaries]]
-| homepage = [https://www.lvmh.com lvmh.com]
-| parent = [[Dior|Christian Dior SE]] (41.1%)
-| foundation = {{Start date and age|1987|6|3|df=y}}
-| location = {{nowrap|Global: 22 [[Avenue Montaigne]]}}<br/>[[Paris]], France<br/>Overseas: [[LVMH Tower]]<br/>19 [[57th Street (Manhattan)|East 57th Street]]<br/>[[New York City|New York]], [[New York (state)|N.Y.]], U.S.
-}}
 == Business Description ==
-LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands.
+LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park. The company operates 5,556 stores. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was incorporated in 1923 and is headquartered in Paris, France.
-It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands.
-In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands.
-Watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands.
-Selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park.
-== Summary ==
-LVMH Moët Hennessy - Louis Vuitton was founded in 1987 and is headquartered in Paris, France.
-Today, the group is made up of more than 75 Maisons, with each one creating high quality products, but with their distinctive identities. The Maisons have carefully preserved their heritage by ensuring that the quality of their products is maintained and improved. To achieve products excellence over time vertical integration across the value chain is used, from sourcing the finest raw materials, production and selective retailing. The group will carry on pursuing its brand development-focused strategy in 2023. <ref name=":1">LVMH’s Growth Was Challenged In Fourth Quarter: Is It A Harbinger For 2023? (forbes.com)[https://www.forbes.com/sites/pamdanziger/2023/01/29/lvmhs-growth-was-challenged-in-fourth-quarter-is-it-a-harbinger-for--2023/?sh=3470d6b742dd]</ref>
-The company operates 5,556 stores world wide and currently employs over 196,000 people.
-It is the only group present in all five major sectors of the luxury market: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing.<ref>Mission (lvmh.com)</ref>
 === What's the mission of the company? ===
-“Our success is only worthwhile if it is also virtuous. Success can only last if it is fair. And if it benefits everyone, then it will be even greater. What’s the point of inspiring dreams with magnificent products if they don’t meet the highest social and environmental standards? We apply those standards for the benefit of our employees and our customers of course, for our stakeholders as well, but above all for our future.” Bernard Arnault
+“Our success is only worthwhile if it is also virtuous” Success can only last if it is fair. And if it benefits everyone, then it will be even greater. What’s the point of inspiring dreams with magnificent products if they don’t meet the highest social and environmental standards? We apply those standards for the benefit of our employees and our customers of course, for our stakeholders as well, but above all for our future.” Bernard Arnault
 ==== 2023 Objectives to further increase LVMH's global leadership position: ====
@@ Line 60: / Line 12: @@
 # Commitment: preserve the environment and corporate responsibilities.
 # Vigilance: maintain vigilance within current economic and geopolitical context.
-# Entrepreneurial spirit
+# Entrepreneurial spirit.
+==== LIFE 360: LVMH environmental strategy for new luxury: ====
+# Biodiversity: 2030 -> 5 millions hectares of flora and fauna preserved.
+# Climate:
+## 2026 -> 50% reduction in energy- related greenhouse gas (GHG) emissions.
+## 2030 -> 55% reduction and/or avoidance of Scope 3 GHG emissions per unit of added value.
+# Create circularity: 2030 -> 100% of new products covered by a sustainable design approach.
+# Traceability: 2030 -> 100% of strategic chains covered by a dedicated traceability system.
 == Macro Analysis and Trends ==
@@ Line 73: / Line 34: @@
 The industry has experienced significant growth in recent years, and it is expected to continue to grow in the coming years. Looking ahead, this growth will be driven by a number of macro trends:
-.      '''The growth of the middle class in emerging markets''': The growth of the middle class in emerging markets is one of the most important trends in the global economy. By 2030 the global middle class, is expected to reach 4.8 billion people, that is 1.3 billion more people with increased purchasing power than today.<ref>Growing consumption | Knowledge for policy (europa.eu)[https://knowledge4policy.ec.europa.eu/growing-consumerism_en#:~:text=By%202030%2C%20the%20global%20middle%20class%2C%20also%20termed,more%20people%20with%20increased%20purchasing%20power%20than%20today.]</ref> This trend is driving demand for luxury goods in emerging markets. Despite a disappointing first half of 2023, due to a stall in US sales growth. Jean-Jacques Guiony, CFO, has stated that the stall in US sales is due to favourable currency exchange rates, American tourists travelled to Europe to make their purchases.<ref name=":1" /> This can be explained as Europe advances 28% in Q4-2022, with market share reaching 24% up from 21% in 2021. China still represents the largest emerging market for luxury goods and Asia's economy rebounded in Q1-2023 where sales grew 14%, compared to a falling 8% in the last 3 months on 2022. <ref>UBS’s Credit Suisse challenge | Financial Times (ft.com)[https://www.ft.com/content/cdc1cf20-136b-4dd4-9232-d9bc89f49420]</ref>
+.      '''The growth of the middle class in emerging markets''': The growth of the middle class in emerging markets is one of the most important trends in the global economy. This trend is driving demand for luxury goods in emerging markets. Despite a disappointing first half of 2023, China still represents the largest emerging market for luxury goods its economy is expected to grow by 5.2% in 2023.<ref>https://www.reuters.com/markets/asia/sp-global-cuts-china-2023-growth-forecast-52-55-2023-06-26/</ref>
 .      '''Generational trends''': Millennials are increasingly becoming the target market for luxury goods brands. This is because millennials have more disposable income than previous generations, and they are more likely to spend money on luxury goods. Additionally, “Gen Z” are expected to represent one-third of the market by 2030 and their spending is set to grow three times faster than for other generations until 2030.<ref>https://www.bain.com/about/media-center/press-releases/2022/global-luxury-goods-market-takes-2022-leap-forward-and-remains-poised--for-further-growth-despite-economic-turbulence/#:~:text=Global%20luxury%20goods%20market%20takes%202022%20leap%20forward,60%25%2B%20market%20growth%20to%202030%20...%20More%20items</ref>
-.      '''The growth of online shopping''': The growth of online shopping is another important trend that is impacting the luxury goods industry. Online shopping is making it easier for consumers to buy luxury goods from around the world. This trend was observed during the Covid- 19 global pandemic, due to the closure of retail stores.
+.      '''The growth of online shopping''': The growth of online shopping is another important trend that is impacting the luxury goods industry. Online shopping is making it easier for consumers to buy luxury goods from around the world.
-.      '''The demand for sustainable luxury goods''': There is a growing demand for sustainable luxury goods. This is because consumers are becoming more aware of the environmental impact of luxury goods production. Even though, according to Bain-Altagamma, the luxury market is only expected to grow 3% to 5% or 6% to 8%, best case scenario, in 2023. <ref>LVMH’s Growth Was Challenged In Fourth Quarter: Is It A Harbinger For 2023? (forbes.com)[https://www.forbes.com/sites/pamdanziger/2023/01/29/lvmhs-growth-was-challenged-in-fourth-quarter-is-it-a-harbinger-for--2023/?sh=3470d6b742dd]</ref>
+.      '''The demand for sustainable luxury goods''': There is a growing demand for sustainable luxury goods. This is because consumers are becoming more aware of the environmental impact of luxury goods production.
-== Key Professionals <ref>https://www.capitaliq.com/CIQDotNet/Company/Professionals.aspx?CompanyId=195488</ref> ==
+== Key Professionals ==
 {| class="wikitable"
-!Name
+!'''Name'''
-!Title
+!'''Title'''
-!Brief Desciption
 |-
 |Arnault, Bernard
 |Chairman & CEO
-|Mr. Bernard Arnault is a prominent figure in the luxury industry and serves as the Executive Chairman and Chief Executive Officer of LVMH Moët Hennessy Louis Vuitton. He has been with the company since January 1989. Mr. Arnault began his career as an engineer and later became Chairman and CEO of Ferret-Savinel. He then led a reorganization of Financière Agache and Christian Dior, focusing on luxury brands.Mr. Arnault is also the Chairman of Christian Dior SE and serves as the Chairman of Groupe Arnault SAS and Montaigne Participations et Gestion SA. He has directorship positions in various companies, including LVMH Moet Hennessy Louis Vuitton SA, Financiere Jean Goujon, Christian Dior Couture, and Societe Civile du Cheval Blanc. He is actively involved in the luxury industry and owns Chateau Cheval Blanc SA. Outside of LVMH, Mr. Arnault has served as a Director of companies such as Diageo plc and Vivendi Société Anonyme. He has been recognized for his business acumen and leadership, holding positions in organizations like Paris EUROPLACE and Frere-Bourgeois. Mr. Arnault's influence extends internationally, as he serves on the Director boards of LVMH subsidiaries in the United States and Japan. He holds the position of Chairman of the Executive Board at Groupe Arnault SEDCS and is the Chairman of Louis Vuitton, Fondation d’Entreprise.
 |-
 |Guiony, Jean-Jacques
 |Chief Financial Officer
-|Mr. Jean-Jacques Guiony holds multiple executive positions within the LVMH group and its subsidiaries. He serves as the President and Managing Director of Delphine SAS, L Real Estate Advisors (France), LVMH Hotel Management, SOFIDIV, and UFIPAR. Mr. Guiony is also the President of Lvmh Inc. and Marc Jacobs Holdings, LLC.
-Since 2004, Mr. Guiony has been the Chief Financial Officer of LVMH Moët Hennessy - Louis Vuitton. He is also the Chief Executive Officer and President of GRANDS MAGASINS DE LA SAMARITAINE MAISON ERNEST COGNACQ S.A. Prior to joining LVMH, he served as the Head of Mergers & Acquisitions at Lazard Ltd.
-Mr. Guiony holds various directorship positions in numerous companies, including Belmond Ltd. He also serves as the Chairman of several entities such as GRANDS MAGASINS DE LA SAMARITAINE MAISON ERNEST COGNACQ S.A., Creare Pte Ltd., LA Samaritaine, LBD Holding, LVMH Iberia SL, LVMH Finance, and LVMH Iberia SL.
-Additionally, he serves as a Member of the Supervisory Board of Berluti, LES Echos, and RVL Holding BV, representing LV Group. Mr. Guiony holds directorship positions in companies such as Ashbury Finance SA, Bulgari S.P.A, DFS Group Limited, and Louis Vuitton Malletier, among others, on behalf of LVMH entities.
-Mr. Guiony is a graduate of Groupe HEC, a prestigious business school in France. His extensive involvement and leadership roles within LVMH and its subsidiaries highlight his significant contributions to the luxury conglomerate.
 |-
 |Kuhn, Bernard
 |General Counsel
-|Bernard Kuhn serves as General Counsel of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (formerly known as LVMH Moët Hennessy Louis Vuitton SE)-
 |-
 |Bouillonnec, Yann
 |Vice President of Sales
-|Yann Bouillonnec serves as Managing Director of Asia Pacific at Vacheron & Constantin SA. Yann Bouillonnec serves as Vice President of Sales at LVMH Moët Hennessy - Louis Vuitton, Société Européenne.-
 |-
 |Gaemperle, Chantal
 |Group Executive Vice President of Human Resources & Synergies
-|Mrs. Chantal Gaemperle is the Group Executive Vice President of Human Resources and Synergies at LVMH Moët Hennessy - Louis Vuitton. She has held this position since January 2007. Prior to joining LVMH, Mrs. Gaemperle served as the Head of Corporate Management Development and Sourcing at Nestlé from 2001.
-With a background in human resources, Mrs. Gaemperle previously worked as the Director of Human Resources for LVMH. She began her career at Philip Morris and later joined Merrill Lynch as the Director of Human Resources for Switzerland.
-Mrs. Gaemperle holds a Master's degree in Political and Social Sciences, as well as an MBA in Public Administration from the University of Lausanne. She is also a graduate of INSEAD, a prominent business school in France.
-In her role at LVMH, Mrs. Gaemperle oversees the human resources function and works on implementing synergies within the group. Her extensive experience and educational background contribute to her strategic management of human resources within the luxury conglomerate.
 |-
 |Arnault, Antoine
 |Group Chief Image & Environment Officer and Director
-|Mr. Antoine Arnault holds several key positions within the luxury conglomerate LVMH Moët Hennessy Louis Vuitton and its subsidiary Christian Dior. Since December 2022, he has served as the Chief Executive Officer and Vice-Chairman at Christian Dior. Additionally, he has been the Managing Director of Berluti since 2011 and serves as the Chairman of the Executive Board at Berluti SA.
-Mr. Arnault is also the Chairman and Chief Executive Officer at LV Group SA. He holds the position of Managing Director at Berluti LLC (United States) and France Marbeuf Capital SARL. Since 2013, he has been the Chairman of the Board at Loro Piana SpA (Italy). Furthermore, Mr. Arnault is a Member of the Executive Board at France Groupe Arnault SEDCS.
-Having joined LVMH in 2007, Mr. Arnault previously served as the Director of Communication at Louis Vuitton. He has also held various roles within Louis Vuitton, including Marketing Manager and Director of Provincial Operations in France. Currently, he serves as a Director of LVMH Moët Hennessy Louis Vuitton SA and holds the position of Group Chief Image & Environment Officer.
-Outside of LVMH, Mr. Arnault has been involved in several directorial and advisory roles. He was an Independent Director of Lagardere SCA until October 2013 and is a Member of the Supervisory Board at Les Echos SAS. He serves as a Director of various companies, including Berluti Hong Kong Company Limited, Berluti (Shanghai) Company Limited, Fendi Srl, and Comité Colbert.
-Mr. Antoine Arnault's extensive experience and multiple leadership roles within LVMH and its subsidiaries demonstrate his significant contributions to the luxury industry and the strategic management of these renowned brands.
 |-
 |Arnault, Frederic
 |Chief Executive Officer of TAG Heuer
-|Mr. Frederic Arnault has been the Chief Executive Officer of TAG Heuer at LVMH Moët Hennessy - Louis Vuitton, Société Européenne since July 1, 2020. Mr. Arnault had been a Strategy and Digital Director of TAG Heuer at LVMH Moët Hennessy Louis Vuitton SE since September 2018.-
 |-
 |Bazire, Nicolas
 |Senior VP of Development & Acquisitions and Director
-|Mr. Nicolas Bazire has held several significant positions within the luxury conglomerate LVMH Moët Hennessy Louis Vuitton and Groupe Arnault SAS. Since 1999, he has served as the Chief Executive Officer and Managing Director of Groupe Arnault SAS. Additionally, he is the Senior Vice President of Development and Acquisitions at LVMH.
-Mr. Bazire has a diverse professional background. He was previously the Managing Partner of Rothschild & Cie Banque and served as its Chief Executive Officer and Chairman of the Partnership Board. He has also held positions at the Cour des Comptes as an Auditor and auxiliary judge. From 1993 to 1995, he worked as the Chief of Staff and a Project Manager for Prime Minister Edouard Balladur.
-As for his directorial roles, Mr. Bazire has served on the board of various prestigious companies. He has been a Director of LVMH Moët Hennessy Louis Vuitton since 1999 and Christian Dior SE since 2017. He was a Non-Independent Director of Carrefour SA from 2008 to 2021 and a Director of SUEZ SA from 2008 to 2020.
-Mr. Bazire is involved in numerous directorial and managerial roles within Groupe Arnault and its affiliated companies. He serves as a Vice-Chairman of the Supervisory Board at Les Echos SA and a Director of Louis Vuitton Malletier SA, LV Group SA, and Louis Vuitton, Fondation d'Entreprise. He is also a Director of LVMH Fashion Group, Louis Vuitton pour la création, and other entities.
 |-
 |Beaufils, Benjamin
 |President of North American Operations
-|Mr. Benjamin Beaufils serves as President of North American Operations at LVMH Moët Hennessy - Louis Vuitton, Société Européenne since September 2019. Mr. Beaufils was the former head of the Louis Vuitton brand's North American arm.-
 |-
 |Belloni, Antonio
 |Group MD & Director
-|Mr. Antonio Belloni, also known as Toni, is the Group Managing Director of LVMH Moët Hennessy Louis Vuitton, Société Européenne (LVMH) since September 2001. He joined the LVMH group in June 2001, bringing with him experience from Procter & Gamble. At Procter & Gamble, he served as Chairman and CEO of the group's Italian operations and later became the head of the European division. Mr. Belloni began his career at Procter & Gamble in Italy in 1978 and held various positions in Switzerland, Greece, Belgium, and the United States.
-In his role at LVMH, Mr. Belloni has held several directorial positions within the company and its subsidiaries. He serves as a Non-Executive Director of DFS Group Ltd. He is also Vice-Chairman of LVMH Moët Hennessy Louis Vuitton Inc. (United States) and Vice-Chairman and Member of the Supervisory Board of Berluti SA. Additionally, he serves as the Managing Director of Moët Hennessy Management SARL and International Benefit Cosmetics LLC (United States).
-Mr. Belloni holds various chairmanship positions within LVMH and its affiliated companies. He is the Chairman of the Supervisory Board at Cha Ling SCA, Chaumet International SA, Fendi International SAS, Fendi Srl (Italy), Vicuna Holding SpA (Italy), and LVMH (Shanghai) Management & Consultancy Co. Ltd (China).
-Moreover, Mr. Belloni serves as a director for several renowned brands, including Fred Paris SA, Barilla G. e R. Fratelli SpA (Italy), Givenchy SA, Le Bon Marché, maison Aristide Boucicaut SA, Bulgari SpA (Italy), Loro Piana SpA (Italy), and many others.
 |-
 |Bianchi, Stephane
 |Head of LVHM's Watch & Jewelry Unit
-|Mr. Stephane Bianchi has been Head of LVHM's Watch & Jewelry Unit at LVMH Moët Hennessy - Louis Vuitton, Société Européenne since July 1, 2020. He served as the Chief Executive Officer of Watchmaking Division at LVMH Moët Hennessy Louis since November 1, 2018 until July 1, 2020. Mr. Bianchi spent the majority of his career with the Yves Rocher Group, and most recently was on the board of the Maus Group (Lacoste).-
 |-
 |Das, Ipsita
 |Managing Director of India
-|Ms. Ipsita Das serves as Managing Director of India at LVMH Moët Hennessy - Louis Vuitton, Société Européenne since January 2021. Ms. Das joined Moet Hennessy as commercial director in 2019. Ms. Das has earlier worked with Uber, Maersk and Housing.com.-
 |-
 |de Lapuente, Christopher
 |Chairman & CEO of Selective Retailing Division
-|Mr. Christopher de Lapuente, also known as Chris, holds significant leadership positions within the beauty industry. He serves as the Global CEO and President of Sephora SA at Sephora USA, Inc. Additionally, he is the Chairman and CEO of the Selective Retailing Division and the former Chairman and CEO of the Perfumes & Cosmetics Division at LVMH Moët Hennessy Louis Vuitton.
-Mr. de Lapuente has an extensive background in the beauty sector, particularly with Sephora. He has been the CEO of Sephora and Beauty at LVMH since 2011 and previously held the position of Head of Sephora. Prior to his tenure at LVMH, he held prominent roles at The Procter & Gamble Company. He served as the President of Global Hair Care and later as the Group President of Global Professional and Retail Hair Care.
-Throughout his career, Mr. de Lapuente has demonstrated his expertise in brand management and marketing. He has held various positions within Procter & Gamble, including Vice President for UK & Eire, General Manager of Europe Feminine Care Germany, and Marketing Director for several regions.
-Mr. de Lapuente received his BSc Economics (Hons) from Buckingham University in 1983. With his wealth of experience and leadership in the beauty industry, he continues to drive the success and growth of Sephora and LVMH's Selective Retailing Division.
 |-
 |Guerra, Andrea
 |Head of Hospitality & Restaurant Business
-|Mr. Andrea Guerra holds several prominent roles within the business world. He currently serves as the CEO and Executive Director of Prada S.p.A. and the Head of Hospitality & Restaurant Business at LVMH Moët Hennessy - Louis Vuitton, Société Européenne. He has been the Executive Chairman of Eataly Company since 2015 and is a Senior Strategic Advisor to the Italian Prime Minister.
-Previously, Mr. Guerra served as the CEO of Luxottica Group SpA and Indesit Company S.p.A. He has held various directorial positions and has extensive experience in marketing and brand management. He has also served as an independent director for several companies, including Tapestry, Inc. and Amplifon SpA.
-Mr. Guerra is known for his expertise in brands, fashion, luxury goods, and durables. He holds a degree in Economics and Business Administration from La Sapienza University in Rome, earned in 1989. With his extensive experience and strategic acumen, Mr. Guerra continues to make significant contributions to the companies he is associated with.
 |-
 |Mukherji, Shantanu
 |Managing Director od L Catterton
-|Mr. Shantanu Mukherji has been Managing Director and served as Executive Director of L Catterton (formerly known as L Capital Asia) until February 2016 at LVMH Moet Hennessy Louis Vuitton S.E. since March 2013. Mr. Mukherji served as General Manager of LVMH watch and jewellery South Asia of LVMH Moet Hennessy Louis Vuitton since July 2002 to August 2007. Before joining LVMH in 2002, he was working with 'Nike' as marketing manager for South East Asia. He contributed in setting up Indian subsidiary of the company and also in setting up distributor network in South Asia, LVMH. He was also the Brand Manager for Dior watches in India, he led the successful re-positioning of the brand in the country. He holds B.Tech at IIT Delhi in Manufacturing Engineering from 1994 to 1998. He studied from Indian Institute of Management Ahmedabad from 1998 to 2000.-
 |-
 |Rogers, Ian
 |Chief Digital Officer
-|Mr. Ian Rogers has held significant roles in the technology and digital media industry. He currently serves as the Chief Experience Officer at Ledger SAS, where he oversees consumer-facing services for protecting digital assets. He is also an Independent Non-Executive Director at Dr. Martens Limited and Dr. Martens plc.
-Prior to his current positions, Mr. Rogers served as the Chief Digital Officer at LVMH, where he worked with numerous brands across various sectors, including fashion, leather goods, perfumes, cosmetics, wines, spirits, and selective retail. Some notable brands he collaborated with include Louis Vuitton, Dior, Sephora, and Hennessy.
-Mr. Rogers has a strong background in digital media and technology. He has held positions at Apple Inc., Beats Music, LLC, and Yahoo! Inc., where he played significant roles in the development and strategy of various digital media products and services.
-Additionally, Mr. Rogers has experience as an entrepreneur and has served as a director for companies such as Lyst Ltd. and Topspin Media, Inc. He has been involved in pioneering projects in the digital music industry and has a Bachelor of Arts in Computer Science from Indiana University.
-With his expertise in digital media and technology, Mr. Rogers continues to contribute to the advancement of digital experiences and asset protection in his current roles.
 |-
 |Voisin, Jean-Baptiste
 |Chief Strategy Officer
-|Mr. Jean-Baptiste Voisin has been the Director of Strategy at LVMH Moët Hennessy - Louis Vuitton, Société Européenne (formerly known as LVMH Moët Hennessy Louis Vuitton SE) since 2006.-
 |-
 |Beccari, Pietro
 |Chairman & CEO of Louis Vuitton
-|Mr. Pietro Beccari is Chairman & CEO of Christian Dior Couture at LVMH Moët Hennessy - Louis Vuitton, Société Européenne since 2018. He served as a Chairman and CEO of Christian Dior Couture S.A. since February 2018 until 2023. Mr. Beccari served as the Head of Hair Care and Cosmetics of Central Europe of Henkel Group. He spent his earlier career in Marketing at Benckiser in Italy and Parmalat in the US, then in General Management at Henkel in Germany, where he was Corporate Vice-President for Haircare. In 2006, he joined LVMH as Executive Vice-President Marketing and Communications for Louis Vuitton before becoming Chairman and Chief Executive Officer of Fendi in 2012. Since February 2018, he has been Chairman and Chief Executive Officer of Christian Dior Couture. He is also a member of the LVMH Executive Committee. He is a Business Administration graduate of Parma University in Italy.-
 |-
 |Boillot, Laurent
 |CEO & President of Guerlain
-|Mr. Laurent Boillot has been Chief Executive Officer and President of Guerlain SA, a subsidiary of LVMH Moet Hennessy Louis Vuitton since October 10, 2007 and serves as its Chairman. Mr. Boillot served as General Manager of Guerlain. He started his career in advertising in 1988 within the Havas Group. In 1990, he joined Univeler, held positions of increasing responsibilities in France and Spain. He served as Marketing Director of the European Hair Care Category at Unilever. In 2002, he joined Guerlain as Marketing Director. Mr. Boillot is a graduate of Rouen Business School.-
 |-
 |Brocart, Sophie
 |Chief Executive Officer of Jean Patou
-|Ms. Sophie Brocart serves as Chief Executive Officer of Fashion and Perfume Brand Jean Patou at LVMH Moët Hennessy - Louis Vuitton, Société Européenne (formerly known as LVMH Moët Hennessy Louis Vuitton SE) since October 2018. She currently serves as Senior Vice President of Fashion Venture at LVMH and as Chief Executive Officer of the group's British brand, Nicholas Kirkwood Ltd.-
 |-
 |Jamet, Marc-Antoine
 |General Secretary
-|Mr. Marc-Antoine Jamet serves as General secretary of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (formerly known as LVMH Moët Hennessy Louis Vuitton SE). Mr. Jamet serves as the Chairman of the Board at Le Jardin D'acclimatation SA.-
 |-
 |Schaus, Philippe Paul Auguste
 |Chief Executive Officer of Moët Hennessy - Wines & Spirits Division
-|Mr. Philippe Paul Auguste Schaus has held significant leadership positions within the LVMH group. He currently serves as the Chief Executive Officer of the Moët Hennessy - Wines & Spirits Division at LVMH Moët Hennessy Louis Vuitton SE since October 1, 2017. Previously, he served as the Chief Executive Officer and Chairman of DFS Group Limited from August 1, 2012, until October 1, 2017.
-Mr. Schaus began his career in finance, working at J.P. Morgan before joining The Boston Consulting Group GmbH. In 1992, he joined Villeroy & Boch A.G., where he held various positions, including International Commercial Director and Managing Director of the Porcelain Tableware Division.
-In 2003, Mr. Schaus joined Louis Vuitton as President of the Europe Zone and later became Senior Vice President of International in 2006. He served as an Executive Vice President of Louis Vuitton from 2009 to 2011.
-In addition to his executive roles, Mr. Schaus serves as a director for several companies within the DFS Group, including DFS Australia Pty Limited and DFS New Zealand Limited.
-Mr. Schaus is a graduate of INSEAD, a prestigious business school. With his extensive experience in the luxury retail industry and his current leadership role at Moët Hennessy - Wines & Spirits Division, he continues to contribute to the success of LVMH and its associated brands.
 |-
 |Toledano, Sidney
 |Chairman and CEO of the Fashion Group
-|Mr. Sidney Toledano is a prominent figure in the luxury fashion industry, particularly within the LVMH group. He has held various executive positions, including CEO of Christian Dior SE and President of Fendi France. He has also served as Chairman for several LVMH fashion brands and holds directorial roles in numerous international companies. Mr. Toledano's extensive experience and leadership make him a key figure in the fashion industry.
 |-
 |Hollis, Christopher
 |Director of Financial Communications
-|Christopher Hollis, also known as Chris, is Director of Textainer Group Holdings Limited from June 01, 2023. Christopher Hollis is Director of Financial Communications of LVMH Moët Hennessy - Louis Vuitton, Société Européenne.-
 |-
 |Stalla-Bourdillon, Bertrand
 |Group Vice President of Retail Development
-|Mr. Bertrand Stalla-Bourdillon has been the Group Vice President of Retail Development and served as Chairman of the Board and Chief Executive Officer of Marc Jacobs International of LVMH Moet Hennessy Louis Vuitton since June 6, 2006. Mr. Stalla-Bourdillon joined LVMH group in 1986 where he had increasing responsibilities in finance positions for Loewe, Louis Vuitton Malletier and within the Fashion and Leather goods Division. In 2002, he was appointed General Manager, finance and administration for Louis Vuitton Malletier. At the same time, as President, he has successfully developed Berluti since 1995. Mr. Stalla-Bourdillon, after a commercial experience at IBM, mainly made his career within the LVMH group. He serves as a Director of Marc Jacobs International of Lvmh Moet Hennessy Louis Vuitton. Mr. Stalla-Bourdillon is an Engineer and MBA from HEC from 1981 to 1983 and Ecole spéciale des Travaux publics, du Bâtiment et de l'Industrie 1978 to 1981.-
 |}
-== Board Members <ref>https://www.capitaliq.com/CIQDotNet/Company/BoardMembers.aspx?CompanyId=195488&limitFunctions=3</ref> ==
+== Board Members ==
 {| class="wikitable"
 ! rowspan="2" |'''Name'''
@@ Line 355: / Line 260: @@
 |}
-== Committees <ref>https://www.capitaliq.com/CIQDotNet/Company/Committees.aspx?CompanyId=195488</ref> ==
+== Committees ==
 {| class="wikitable"
 !'''Committee'''
@@ Line 400: / Line 305: @@
 |Independent Director
 |-
-| rowspan="4" |ESG Committee
+| rowspan="4" |Other Committee
 |de Silguy, Yves-Thibault
 |Independent Director
@@ Line 414: / Line 319: @@
 |}
-== ESG <ref name=":2">https://hosting.fluidbook.com/LVMH/2022interactiveannualreport/en/#/page/0</ref> ==
+== ESG - Materiality Matrix ==
-=== Materiality Matrix ===
 {| class="wikitable"
 !'''Particulars'''
@@ Line 422: / Line 325: @@
 !'''Fashion andLeather Goods'''
 !'''Perfumes and Cosmetics'''
-!'''Watches and Jewellery'''
+!'''Watches and Jewelry'''
 !'''SelectiveRetailing'''
 |-
@@ Line 486: / Line 389: @@
 |}
-=== Social & Environmental Responsibilities - Initiatives by LVMH ===
-LVMH has made sustainable development a strategic priority since its founding.
-LVMH has undertaken the following initiatives:
--     LIFE 360: LVMH environmental strategy for new luxury:
-# Biodiversity: 2030 -> 5 millions hectares of flora and fauna preserved.
-# Climate:
-## 2026 -> 50% reduction in energy- related greenhouse gas (GHG) emissions.
-## 2030 -> 55% reduction and/or avoidance of Scope 3 GHG emissions per unit of added value.
-# Create circularity: 2030 -> 100% of new products covered by a sustainable design approach.
-# Traceability: 2030 -> 100% of strategic chains covered by a dedicated traceability system.
--       2025 CSR
--       LVMH Ethics & Compliance
--       Diversity & Inclusion
--       ple back into work after long-term unemployment)
--       Disability Inclusion
--       LVMH Climate week
--       IUCN (protecting biodiversity)
--       Nona Source (encourage creative re-use of materials)
--       LIFE in Stores Awards
--       Maison/0
--       Health & Safety policy
--       Fighting Covid-19
--       We Care For Models
--       Responsible Consumption at Moët Hennessy
 == Market ==
 === Total Addressable Market ===
-Here, the total addressable market (TAM) is defined as the luxury goods global market, and based on a number of assumptions, it is estimated that the size of the market as of today (6<sup>th</sup> July 2023) in terms of revenue, is US$354.80bn, and is expected to grow at a CAGR of 3.38% in the forecast period of 2023- 2027.<ref name=":0">Luxury Goods - Worldwide | Statista Market Forecast</ref>
+Here, the total addressable market (TAM) is defined as the luxury goods global market, and based on a number of assumptions, it is estimated that the size of the market as of today (6<sup>th</sup> July 2023) in terms of revenue, is US$354.80bn, and is expected to grow at a CAGR of 3,38% in the forecast period of 2023- 2028.<ref name=":0">Luxury Goods - Worldwide | Statista Market Forecast</ref>
-LVMH is the global leader in the luxury goods global market, having a market share of approximately 25% in terms of annual revenue. It operates in all geographic regions and covers all business groups of the luxury goods market. Making its Serviceable Available Market and Serviceable Obtainable Market equal to the Total Addressable Market.
+== Financial Highlights ==
+{| class="wikitable"
+!'''Key Consolidated Data ''(EUR Millions)'''''
+!'''2020'''
+!'''2021'''
+!'''2022'''
+|-
+|Revenue
+|44,651
+|64,215
+|79,184
+|-
+|Profit from recurring operations
+|8,305
+|17,151
+|21,055
+|-
+|Net profit
+|4,955
+|12,698
+|14,751
+|-
+|Net profit, Group share
+|4,702
+|12,036
+|14,084
+|-
+|Cash from operations before changes in working capital
+|13,997
+|22,621
+|26770
+|-
+|Operating investment
+|2.478
+|2,664
+|4,969
+|-
+|Operating free cash flow
+|6,117
+|13,531
+|10,113
+|-
+|Total equity <sup>(a)</sup>
+|38,829
+|48,909
+|56,604
+|-
+|Net financial debt <sup>(b)</sup>
+|4,241
+|9,607
+|9201
+|-
+|Adjusted net financial debt/Equity ratio
+|10.9%
+|19.60%
+|14.30%
+|}
+<small>''(a) Including minority interests''</small>
+<small>''(b) Excluding “Lease liabilities” and “Purchase commitments for minority interests’ shares” included in “Other non-current liabilities”''</small>
-== Financial Highlights <ref name=":2" /> ==
 === Business Group - Highlights ===
 {| class="wikitable"
@@ Line 619: / Line 539: @@
 |'''21,055'''
 |}
-==== Revenue by business group ====
-[[File:Capture4.png|Revenue by business group, as a % of total revenue.]]
-==== Revenue by geographic region delivery ====
-[[File:Revenue by region.png|Revenue by geographic region of delivery, in %]]
 == Financial Statements<ref>lvmh_2022_annual-report.pdf (lvmh-static.com)</ref> ==
@@ Line 632: / Line 544: @@
 ==== Most recent quarter ====
-Comparing Q1 2023 to Q1 2022, in euro millions, the total LVMH group has experienced a 17% reported and organic increase in revenue from 18,003 to 21,035 respectively.
+Comparing Q1 2023 to Q1 2022, in euro millions, the total LVMH group has experienced a 17% reported and organic increase in revenue from 18,003 to 21,035 respectively. The Wines & Spirits business group recorded a revenue growth of 3% with an organic revenue growth of 14% of the Champagne & Wines sector, due to a strong start to year driven by positive price effect, and a 5% organic revenue decrease of the Cognac & Spirits sector, due to China recovering from Covid impact while US impacted by softer economic environment. The Fashion & Leather Goods business group recorded a revenue growth of 18%, due to exceptional performance, driven by creativity and iconic products, specially in Louis Vuitton. The greatest revenue evolution was observed in the Selective Retailing sector, where an increase of 28% was recorded due to Sephora's strong performance, DFS benefiting from recovery in travel, notably in Asia and Le Bon Marché with its creative animations.<ref>Présentation PowerPoint (lvmh-static.com)</ref>
-The Wines & Spirits business group recorded a revenue growth of 3% with an organic revenue growth of 14% of the Champagne & Wines sector, due to a strong start to year driven by positive price effect and China recovering from Covid impact, and a 5% organic revenue decrease of the Cognac & Spirits sector, due to the US being impacted by softer economic environment.
-The Fashion & Leather Goods business group recorded a revenue growth of 18%, due to exceptional performance, driven by creativity and iconic products, specially in Louis Vuitton.
-The greatest revenue evolution was observed in the Selective Retailing sector, where an increase of 28% was recorded due to Sephora's strong performance, DFS benefiting from recovery in travel, notably in Asia and Le Bon Marché with its creative animations.<ref>Présentation PowerPoint (lvmh-static.com)</ref>
 ==== Most recent year ====
@@ Line 645: / Line 551: @@
 Other important financial indicators include:<ref>Présentation PowerPoint (lvmh-static.com)</ref>
+* a decrease in operating free cash flow by 3.418 billion euros in comparison with 2021.
 * dividend of 12 euros in 2022, increased by 20% compared to 2021.
 * Gearing of 16% compared to a gearing of 20% in 2021. (Gearing: the ratio of a company's debt to equity)
@@ Line 785: / Line 692: @@
 |'''26,720'''
 |}
+[[File:LVMH Annual Income Statement.png|left|thumb|465x465px]]
-[[File:LVMH Annual Income Statement.png]]
 === LVMH's Annual Balance Sheet ===
@@ Line 980: / Line 904: @@
 |'''35,147'''
 |}
+[[File:LVMH Balance Sheet.png|left|thumb|443x443px]]
-[[File:LVMH Balance Sheet.png]]
 === LVMH's Cash Flow Statement ===
 {| class="wikitable"
 !'''EUR''' €,  Millions
@@ Line 1,191: / Line 1,132: @@
 |'''10,113'''
 |}
-[[File:Cash Flow Statement.png|Cash Flow Summary]
 === Financial Forecast ===
@@ Line 1,204: / Line 1,143: @@
 |What’s the estimated current size of the total addressable market?
 |$354,800,000,000
-|The total addressable market is defined as the luxury goods  global market and , it is estimated that the size of the market as of today (6<sup>th</sup>  July 2023) in terms of revenue, is US$354.80bn.
+|The total addressable market is defined as the luxury goods  global market and , it is estimated that the size of the market as of today (6<sup>th</sup>  July 2023) in terms of revenue, is US$354.80bn.<ref name=":0" />
 |-
 |What growth stage is the company in?
@@ Line 1,215: / Line 1,154: @@
 |80 years
-|LVMH employees approximately 196,000, making the company a  large organisation, research has proven that the average life span of a large  company is approximately 50 years. Due to LVMHs exponential revenue growth in  the last 36 years, and assuming that the company is in the maturity stage of  growth which is approximately 50% of a companies lifecycle, I am going to  assume a life span of 80 years.
+|LVMH employees approximately 196,000, making the company a  large organisation, research has proven that the average life span of a large  company is approximately 50 years.<ref>Stadler, Enduring Success, 3–5.</ref> Due to LVMHs exponential revenue growth in  the last 36 years, and assuming that the company is in the maturity stage of  growth which is approximately 50% of a companies lifecycle,<ref name=":1">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref> I am going to assume a life span of 80 years.
 |-
 |What is the estimated annual growth of the total addressable  market over the lifecycle of the company?
 |3.38%
-|The market is estimated to grow at a 3.38% CAGR (Compound Annual  Growth Rate) in the forecast period of 2023- 2028.
+|The market is estimated to grow at a 3.38% CAGR (Compound Annual  Growth Rate) in the forecast period of 2023- 2028.<ref name=":0" />
 |-
 |What is the estimated company peak market share?
@@ Line 1,227: / Line 1,166: @@
 |Which distribution function do you want to use to estimate company  revenue?
 |Gaussian
-|Research has suggested that the revenue pattern of companies  is similar to the pattern produced by the gaussian distribution.
+|Research has suggested that the revenue pattern of companies  is similar to the pattern produced by the gaussian distribution.<ref name=":1" />
+|-
+|What is the estimated standard deviation of company revenue?
+|
+|
+|-
+|
+|
+|
 |}
@@ Line 1,260: / Line 1,207: @@
 | +/-
 |}
 == Valuation ==
+[[File:Screenshot 2023-07-06 at 11.10.01.png|thumb|Unlevered Free Cash Flow [[File:Screenshot 2023-07-06 at 11.10.11.png|thumb|Fixed Assets[[File:Screenshot 2023-07-06 at 11.10.21.png|thumb|Net Working Capital[[File:Screenshot 2023-07-06 at 11.10.54.png|thumb|Weighted Average of Capital[[File:Screenshot 2023-07-06 at 11.11.11.png|thumb|Implied Share Price and Sensitivity Table[[File:Screenshot 2023-07-06 at 11.59.35.png|thumb|Base Case, Bear Case, Bull Case]]]]]]]]]]]]
+In the following section, there are 2 valuation methods, DCF model and the relative valuation.
+For the DCF model, the base case implied share price is $1175.92, which has a 27.64% potential upside; the bull case implied share is 1436.27, which has a 55.90% upside; the bear case implied share is 782.49, which has a 15.07% downside. Therefore, for a weighted average of 50% bull case, 25% bull case and 25% bear case, we get 1142.65, which has a 31.09% upside. We take these weighted average percentage is because the inflation rate remains high, the FED has 95% chance to increase the interested rate in the next FOMC meeting, due to this uncertainty, a conservative prediction is applied. Also, we assumed that all the growth is constant in the next 5 years of projection, taking the average from the past 5 years for the base case. The bull case and bear case is calculated with the earnings in EV/EBITDA and Net Debt/EBITDA, and the Free Cash Flow Equity Yield based on their free cash flow, both earning price target and the FCFE price target are weighted 50% each. Throughout the calculation, we obtained the WACC with 13.33% and the CAPM is 14.08%.
+For the relative valuation,
-[[File:Capture10.png|Unlevered Free Cash Flow]]
-[[File:Capture11.png|Fixed Assets]]
-[[File:Capture12.png|Net Working Capital]]
-[[File:Capture13.png|Weighted Average Cost of Capital (WACC)]]
-[[File:Capture14.png|Implied Share Price and Sensitivity Table]]
-[[File:Capture15.png|Base Case, Bear Case, Bull Case]]
-When estimating the expected return on an investment over a period of 12-months or more, the most accurate approach is a DCF. In the following section, there are 2 valuation methods, the DCF model and the relative valuation, both models are used in the report for completeness.
-For the DCF model, the weighted average between the bull case, base case, and bear case obtained $1142.65 share price which has a 31.29% upside.
-A simple 50% base case, 25% bull case, and bear case are used because of the uncertainty of the decision of the FOMC on the terminal interest rate. The new reported number on the CPI, consumer price index, has back down to 3% whereas the previous number is 4%. If the FOMC, federal open market committee, does not decrease the interest rate in around September or November, the market will likely be looking at deflation instead. Although the non-Farm payroll has a strong number and a low unemployment rate, the participation rate is much lower than the average, which indicates that the unemployment is not accurately reflected. According to the backtesting research, whenever the FOMC decreases the interest rate, the transition from hawkish to dovish sentiment, resulting in a short squeeze of the stock market and then a big fall, the target is likely to be reached in the next few months when the interest rate is not likely to be increased. A dovish sentiment is an interest rate policy that is more accommodative to stimulate spending in an economy, which is clearly good for the luxury good market.
-Also, for the growth rate, the function of (Estimated revenue in the last year which is 2027 divided by Actual revenue in 2018 which is the first)^(1/10) - 1 is used. Whereas all growth is constant in the next 5 years with a constant revenue growth of approximately 16.2%, taken from the average of the revenue growth during the last 4 years. This method was also used to calculate the % change in COGS, Operating expenses, Selling, General and administrative and tax% of EBIT. Resulting in the financial forecast of LVMH of the next 5 financial years.
-The risk-free rate takes the US 10-year treasury bond yield rate. The Beta value takes the 5 Year monthly, which has a value of 1.03 which suggests that LVMH moves with more momentum than the S&P 500 stocks. This beta suggests that it’s not a very risky investment as it doesn’t deviate a lot from the market beta of 1. Although theoretically it does increase a portfolios risk by 3% and may increase the expected return.
-Looking at the numbers in the DCF model, for the base case, we assumed a constant percentage increase. The China PPI (producer price index ) number is lower than expected, falling by 5.4 percent in June from the previous year, marking the steepest fall since December 2015. Despite the issue remaining from 2022, the revenue and profit numbers remain strong in the Chinese Market in LVMH. When this situation is relieved, the buying power is likely to be released and the consumer discretionary industry is more likely to be getting the attention. The number is likely to be higher than the prediction from using the constant percentage increase.
-For the Bear case, the free cash flow to equity has a slight decrease from 2021 to 2022. Although the number remains much higher than in 2020, if the situation persists, the prediction from using the combined result from the free cash flow to equity and Net Debt to EBITDA is likely to be lower.  The free cash flow to equity has just turned positive from 2021, More data from 2023 is needed to check if the trends remain. Furthermore, the Japanese yield curve policy might change on the 28th of July. The Japanese currency Yen is usually borrowed and bought stocks in other markets, such as the US market. The cost would therefore be higher, the target return requires higher expectations on the trade and the market power is likely to be suppressed.
-For the Bull case, LVMH and Google announced a strategic partnership to accelerate innovation and develop new cloud-based artificial intelligence (AI) solutions in 2021. This creates new, personalized customer experiences that foster long-term growth. LVMH will be able to take actions to improve the overall business efficiency, from customer experience personalization to product development and logistics, on top of the current machine learning trend. Therefore, the earning number increased by 23%, taking the change from 2021 to 2022.
-The bull case and bear case are calculated with the earnings in EV/EBITDA and Net Debt/EBITDA, and the Free Cash Flow Equity Yield based on their free cash flow, both earning price target and the FCFE price target are weighted 50% each. Throughout the calculation, we obtained the WACC of 13.33% and the CAPM, capital asset pricing model, is 14.08%, and the difference between ROIC%, return on invested capital, and WACC% is 5%. Furthermore, the CapEx has decreased by 10% every year since 2018, indicating that the company is investing its money in future growth. Suggested as well by a decreasing EBITDA but increasing gross profit. Due to the uncertainty of the predicted value of the CPI, we believed that the actual upside of the share price would be higher, because of the effect of lowering the interest rate for the first time in the third bull phase according to Dow's theory and the transition from hawkish sentiment to dovish sentiment.
-For the relative valuation, firstly, its Piotroski F-Score (discrete score between zero and nine used to determine the strength of a firm's financial position) where LVMH has scored a 9. Altman Z-Score (measures the likelihood of a publicly traded company going bankrupt - a value close to 0 suggests a company might be going bankrupt and a value close to 3 suggests a company is in a solid financial position) where LVMH has scored a value of 4.59. The Beneish M-Score indicates that LVMH is not a manipulator on their financial reports.
-Secondly, The PE ratio is currently at 30.5, which is just above the median of its history of 24.71, the minimum value of 11.39, and the maximum value of 78.7. Although the PE ratio is ranked worse than 74.97% across the whole retail-cylindrical industry, LVMH has a huge increase in Revenue, EPS, and operating cash flow, indicating that LVMH remains undervalued if this trend continues.
-This prediction could be seen by looking at the PEG (Price/ Earnings-to-Growth) value, which has a value of 1.5. The median value in its history is 2.28, which is way lower than the maximum value of 5.65 in its history.
-Thirdly, the EV-to-EBITDA is currently at 16.89, which has a similar value to the medium of 12.85. Although it has a higher value than 10, it is significantly lower than its competitors in the industry, where Hermes International SA, St Dupont SA, and Maison Clio Blue SA	have the EV-to-EBITDA of 35.02, 124.72, 395.23, this indicating that LVMH is undervalued compared to the industry.
-The PS ratio is currently at 5.42, it is near to the medium for the past 10 years of 3.05, and has a similar number comparing to the industry, which is 4.5. This indicating that the LVMH stock is slightly undervalued comparing to its industry.
-In summary, both the results from the DCF model and the relative valuation method indicate that LVMH is undervalued, compared to itself in history, the industry, and the potential growth using its free cash flow. LVMH has a potential upside of 31.09% upside.
 == Growth Drivers and Catalysts ==
 LVMH has a strong set of growth catalysts that are attractive to potential investors.
-. '''Digital Transformation and E-commerce''':
+Since the beginning of COVID in 2019 and impact on retail shopping, LVMH recognised the trend as luxury goods moved towards digital transformation and invested heavily in its e-commerce. Their commitment to online shopping extended its luxury shopping experience to its customers at home, building a stronger brand image and customer loyalty.  Strong focus on marketing campaigns throughout the pandemic saw the group out compete competitors in terms of growth throughout 2020, attributed to its sales and presence in emerging markets, despite the closure of stores.
-LVMH's recognition of the digital transformation in the luxury goods industry has been a pivotal driver of its growth. The company has invested heavily in its e-commerce capabilities, enabling customers to access its luxury shopping experience from the comfort of their homes. By embracing online channels, LVMH has built a stronger brand image and enhanced customer loyalty. Its commitment to digital marketing campaigns during the pandemic enabled the company to outperform competitors and achieve significant growth in 2020, even amidst store closures. The ongoing focus on digital innovation and e-commerce positions LVMH to capitalise on the increasing trend of online luxury retail.
-. '''Expansion in Emerging Markets''':
+The groups presence in emerging markets is, and continues to be, a massive contributor to LVMH growth. As economies stable and disposable income rises, luxury product available to a broader consumer base. LVMH strategic expansion into regions of Asia, such as China and Japan, and Brazil has allowed the group to capture new markets and grow its customer base. In 2022, revenue rose 23% across all markets and branches of LVMH, highlighting its ability to perform exceptionally in years effected by economic and geopolitical challenges.
-LVMH's strategic expansion into emerging markets has played a crucial role in its continued growth. With stable economies and rising disposable incomes, regions such as Asia (particularly China and Japan) and Brazil<ref>[14]
-</ref> offer immense potential for luxury goods consumption. LVMH's presence and investments in these markets have allowed the company to capture new customer segments and grow its market share. The robust revenue growth of 23% across all markets and branches in 2022 underscores LVMH's ability to navigate economic and geopolitical challenges while delivering exceptional performance. Continued expansion in emerging markets remains a significant growth catalyst for LVMH.
+LVMH strong and continued performance in the market can also be credited to its offering of a wide range of high end products. This way, the group captures attention in many markets such as; wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery and selective retailing (all sectors saw revenue growth in 2022). The recent acquisition of Tiffany & Co. in 2021 for $15.8 billion is also evidence of the groups continued strong performance in uncertain economic times and the groups focus on diversification, reducing its reliance on specific products and mitigating risk associated with market conditions. LVMH diversification and ability to innovate new products keeps it at the forefront of the luxury goods market.
-. '''Diversified Brand Portfolio''':
+After a successful year in 2022, LVMH is confident in its pursuit of brand development and innovation through 2023.
-LVMH's wide range of high-end products across multiple sectors has been instrumental in its sustained growth. The company's portfolio encompasses renowned brands in wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery, and selective retailing. LVMH's diverse offerings cater to various consumer preferences and capture attention in multiple markets. Revenue growth across all sectors in 2022 further exemplifies the strength of LVMH's brand portfolio. The strategic acquisition of Tiffany & Co. in 2021 for $15.8 billion exemplifies the company's commitment to diversification, reducing its reliance on specific products or sectors and mitigating risks associated with market conditions. LVMH's ability to innovate and introduce new products keeps it at the forefront of the luxury goods market.
-. '''Focus on Brand Development and Innovation''':
+Recent development includes a partnership with Epic Games, creator of Unreal Engine and Fortnite, to help transforms the groups creative pipeline and brings a new type of customer base and immersive product experience. The partnership allows the utilisation of Epic Games powerful 3D creation tools to offer visual experiences, opening new digital ecosystems for advertisement campaigns and digital stores.
-LVMH's emphasis on brand development and innovation solidifies its position as an industry leader. The company remains dedicated to enhancing its brands and pursuing innovation-driven strategies. A notable recent development is the partnership with Epic Games<ref>[15]</ref>, the creator of Unreal Engine and Fortnite. Through this collaboration, LVMH aims to transform its creative pipeline and attract a new customer base. By leveraging Epic Games' powerful 3D creation tools, LVMH can create visually captivating and immersive product experiences. This partnership opens up new digital ecosystems for advertisement campaigns and digital stores, offering customers unique and engaging interactions with LVMH brands. LVMH's focus on brand development and innovation ensures its continued relevance and growth in a rapidly evolving market.
-In summary, LVMH's strong set of growth drivers, including its focus on digital transformation, expansion in emerging markets, diversified brand portfolio, and commitment to brand development and innovation, position the company for long-term success. These factors enable LVMH to capture opportunities in the evolving luxury goods landscape, attract a broader customer base, and maintain its position as a leading global luxury conglomerate.
 == Competitors Comparison ==
-Globally, there are mainly two big luxury groups competing with LVMH. They are Kering and Richemont. LVMH has a huge number of brands base, while other companies have unique brands that LVMH does not have, such as fine jewellery and watches, so if LVMH wants to develop all the luxury goods industry, it needs to think about acquiring more fine jewellery/watch brands in order to achieve the status of being the dominant player in the luxury industy.
 '''LVMH Overview''': In 2023, LVMH reported a Q1 FY 2023 revenue of 21 billion euros, showing a significant increase of 17% compared to the same period in 2022. LVMH's strength lies in its high level of customer loyalty and diverse portfolio of 75 prestigious brands across various luxury sectors.
-'''Richemont Overview''': Richemont, a key competitor of LVMH, reported a sales revenue of 19.95 billion euros in the first quarter of FY 2023. Richemont's focus on watches and jewellery, particularly through brands like Cartier, IWC, and Van Cleef & Arpels, has contributed to its continued growth.
+'''Richemont Overview''': Richemont, a key competitor of LVMH, reported a sales revenue of 19.95 billion euros in the first quarter of FY 2023. Richemont's focus on watches and jewelry, particularly through brands like Cartier, IWC, and Van Cleef & Arpels, has contributed to its continued growth.
 '''Kering Overview''': Kering, another significant competitor of LVMH, reported a revenue of 5.077 billion euros in the first quarter of FY 2023. Kering's most prominent brand, Gucci, contributes significantly to its overall revenue. However, Kering has a weak growth rate of 1% compared to Q1 2022 suggests that its performance is not as strong as that of LVMH and Richemont.
@@ Line 1,334: / Line 1,262: @@
 '''Strengths of Richemont:'''
-. Focus on watches and jewellery: Richemont's specialization in these sectors has allowed it to become a leader in the industry, attracting customers who specifically seek luxury timepieces and high-end jewellery, and its emphasis on core businesses resonates well with customers who value the culture, history, and pioneer status in the industry.
+. Focus on watches and jewelry: Richemont's specialization in these sectors has allowed it to become a leader in the industry, attracting customers who specifically seek luxury timepieces and high-end jewelry, and its emphasis on core businesses resonates well with customers who value the culture, history, and pioneer status in the industry.
 . Extensive collection of luxury brands: With 26 luxury brands and businesses in its portfolio, Richemont offers a wide range of options to cater to different consumer preferences.
@@ Line 1,346: / Line 1,274: @@
 Weaknesses of LVMH in comparison to Richemont:
-. Less competitive in the jewelry industry: LVMH's presence in the jewelry sector is relatively weaker compared to Richemont. To capture a larger market share and increase profitability, LVMH should consider expanding its focus on jewellery.
+. Less competitive in the jewelry industry: LVMH's presence in the jewelry sector is relatively weaker compared to Richemont. To capture a larger market share and increase profitability, LVMH should consider expanding its focus on jewelry.
 . Sustainability focus: Customers are increasingly concerned about sustainability, and products marketed as environmentally friendly have gained traction.
@@ Line 1,352: / Line 1,280: @@
 '''Conclusion''':
-. Richemont could be a big competitor: Based on the revenue data and performance analysis, LVMH remains the market leader in the luxury industry. However, it faces major challenges from Richemont, each with its own strengths and weaknesses. LVMH should focus on expanding its presence in the jewellery industry to compete more effectively with Richemont. Besides, The decision of Richemont to reject the acquisition proposal from LVMH could potentially impact Richemont's stock and attract more attention, particularly from investors who value the "more boutique in core business" mindset.
+. Richemont could be a big competitor: Based on the revenue data and performance analysis, LVMH remains the market leader in the luxury industry. However, it faces major challenges from Richemont, each with its own strengths and weaknesses. LVMH should focus on expanding its presence in the jewelry industry to compete more effectively with Richemont. Besides, The decision of Richemont to reject the acquisition proposal from LVMH could potentially impact Richemont's stock and attract more attention, particularly from investors who value the "more boutique in core business" mindset.
+. Geographical Factor: LVMH has a strong geographical presence in the Asia Pacific region, with most sectors and revenue generated from Asia in 2022. Particularly in China, where the Covid policies have allowed for reopening, the spending power of Chinese consumers continues to rise. The total revenue in Asia will be very significant in 2023. Richemont also generates a significant portion of its revenue from the Asian market. The 2023 total revenue in Asia Pacific of Richemont would be positive to be expected. On the other hand, Kering's performance has been negative, experiencing a decline of 7% from Q1 2022 to Q4 2022. The pace of growth was well below that of competitors.
 Overall, LVMH's performance is expected to continue to increase, and there is optimism regarding its total revenue for 2023.
@@ Line 1,367: / Line 1,297: @@
 # '''Supply Chain Disruptions:''' LVMH relies on a complex global supply chain. Disruptions to this chain – such as those caused by natural disasters, geopolitical events, or pandemics – could impact its ability to produce and distribute its products.
 # '''Intellectual Property Risks:''' As with many companies in the fashion industry, LVMH faces risks from counterfeiting and other intellectual property violations, which could harm its brands and its financial performance.
-# '''Technology Disruptions''': The rapid pace of technological advancements and digital disruptions pose risks to the luxury goods industry. Failure to effectively adapt to evolving technologies, such as e-commerce platforms, artificial intelligence, and data analytics, could impact LVMH's competitiveness and ability to reach target customers.
-# '''Sustainability and Ethical Concerns''': Increasing consumer awareness and expectations regarding sustainability and ethical practices pose risks to companies in the luxury goods sector. Failure to meet these expectations or address environmental and social concerns adequately may harm LVMH's reputation and customer loyalty.
-# '''Dependency on Key Personnel''': LVMH's success is partly attributed to the expertise and leadership of key personnel, including executives and creative directors. The loss of key individuals or their departure from the company could disrupt operations, strategic direction, and the ability to sustain growth.
 == References and notes ==