CEO is richer than Mr. Mask! Corona and inflation have nothing to do with it… The unexpected face of the parent company of “Louis Vuitton”.

The world’s largest luxury brand conglomerate… DFS and Korean entertainment agencies, as well as investment in the redevelopment of Shibuya

Louis Vuitton, Dior, Celine, Fendi, Tiffany, Bulgari, Hublot, Limore, Dom Perignon, Hennessy, etc., are very popular among Japanese.

In fact, all of these global luxury brands are owned and operated by LVMH (Moët Hennessy Louis Vuitton), a huge company. Many consumers purchase LVMH’s various brand products without being aware that they are affiliated with the same company.

LVMH, a giant conglomerate based in Paris, France, was established in 1987 through the merger of Louis Vuitton, known for its world-class luxury brands, and Moët Hennessy, famous for its champagne and cognac. Since then, LVMH has acquired various luxury brands, and currently owns 75 luxury brands, including Tiffany & Co. which joined in 2021.

Diversification of business and geographic diversification is in effect.

LVMH’s greatest feature is the diversification of both its business sectors and sales regions: its 75 brands are well balanced across six sectors: (1) Fashion & Leather Goods, (2) Wine & Spirits, (3) Perfumes & Cosmetics, (4) Watches & Jewelry, (5) Selective Retailing, and (6) Other Activities. Sales in all of these areas are increasing.

In terms of sales by region, Europe, including its home base of France, accounts for 24% of total sales, the United States for 27%, Japan for 7%, and Asia excluding Japan for 30%, showing a perfect regional balance.

Even with COVID-19 crisis and inflation, sales are 11 trillion yen.

In fact, LVMH’s full-year financial results for the end of 2022 show that sales increased 23% year-on-year to 79.184 billion euros (approximately 11.857 trillion yen/€1 = 140 yen) and net income increased 17% to 14.084 billion euros (approximately 1.9717 trillion yen), despite the headwinds from Corona and inflation. Net sales and income increased 17% to 14,084 million euros (about 1,971.7 billion yen).

By division, the mainstay “Fashion & Leather Goods” business increased 25% to 38.648 billion euros (approximately 5,410.7 billion yen), with the sales of “Louis Vuitton” alone topping 20 billion euros (approximately 2.8 trillion yen). In addition, sales in all six divisions, including “Watches & Jewelry” and “Wines & Spirits,” increased.

In terms of sales by region, France posted a 47.6% increase, Europe (excluding France) a 28.9% increase, the U.S. a 29.8% increase, and Japan a 24.0% increase, all of which were significant increases.