Gorbachev face of Louis Vuitton
Louis Vuitton has unveiled an unlikely new face of its advertisements: former Soviet leader Mikhail Gorbachev. In the ad, which will be published in September issues of glossy magazines, Gorbachev is photographed by Annie Leibovitz sitting in the back of a car, looking out the window.
The campaign’s subject is travel, to coincide with the house’s 150 year heritage of the ‘art du voyage’.
Other celebrities featured in the campaign include French actress Catherine Deneuve, who is photographed sitting on a Vuitton suitcase in a foggy railway station, and husband and wife tennis stars Andrew Agassi and Steffi Graf, who are shown snuggling on a hotel bed.
www.louisvuitton.com
6 August 2007
LVMH record results 2006
LVMH Moët Hennessy Louis Vuitton reported a 30 percent surge in 2006 profits to €1.88 billion. Revenues jumped 10 percent to €15.31 billion. “ The excellent performance in 2006 illustrates the vitality of our major brands which continue to strengthen and gain market share,” chairman Bernard Arnault said in a statement. “The year also confirmed the strong potential of our high growth rising star brands and the Group's leading position in emerging markets.”
Arnault cannot be tempted to make any acquisitions. As far as he is concerned, the group's portfolio is “optimized”. “It's certainly not a favourable environment to make acquisitions,” he said during the presentation of the 2006 results. The group achieved strong organic growth of 12 percent, with all business groups and regions contributing to the gains. Profit from recurring operations increased by 16 percent.
The company reported a “robust” economic environment, but acknowledged that Japan was suffering the consequences of a weakened yen. Arnault said that the group was “looking at a flat performance from Louis Vuitton in Japan”. However, he seemed unperturbed by the setback. “We are expecting a year of sustained growth – significant growth in all likelihood.”
The watches and jewellery division performed particularly well, with operating profit leaping a stunning 281 percent to €80 million. The division saw the most growth in the US with 33 percent, followed by Europe with 28 percent. Operating profit at the group's other businesses all realized double-digit growth. The fashion and leather goods division achieved its biggest growth in Asia with 19 percent, followed swiftly by Europe with 18 percent. Japan recorded a very modest growth of 1 percent.
The Fendi brand demonstrated enormous growth, while Marc Jacobs and Donna Karan also showed strong results. Meanwhile, the Louis Vuitton brand is performing well in new markets and there will be more store openings in the Ukraine and Russia. Among the group's most profitable brands were Louis Vuitton, Parfums Christian Dior, Moët & Chandon, Hennessy and Tag Heuer.
www.lvmh.com
15 February 2007
Louis Vuitton signs to Ogilvy
Louis Vuitton has signed a deal with New York advertising agency Ogilvy & Mather to head its new global brand campaign. The French luxury brand will continue to work with French firm BETC, its current advertising agency, on other projects. Details of the new campaign were not disclosed.
Ogilvy & Mather is one of the world's most successful branding and PR agencies since its launch in 1948. PR Weekly scored Ogilvy higher than any other agency in several major categories, having built brands such as IBM, Mattel and Dove. In its latest ads, Louis Vuitton has teamed up with celebrities such as Scarlett Johansson and Kate Moss.
www.ogilvy.com
26 January 2007
Lanciaux quits LVMH
Concetta Lanciaux, LVMH's long term director of human resources, will quit the luxury group to set up her own consultancy firm in March. The group announced that Chantal Gaemperlé will take over from her. She will also become a member of LVMH's executive committee. Gaemperlé was former head of corporate management development and sourcing at Nestlé, and prior to that, she was HR director for investment bank Merrill Lynch in Switzerland .
LVMH chairman and chief executive Bermard Arnault heralded the arrival of Gaemperlé and also spoke of Lanciaux's “exceptional” work over the past 20 years and wished her success with her new firm. Although details of that enterprise are not yet known, Groupe Arnault will be one of its clients.
At LVMH, Lanciaux was a key adviser to Arnault as executive vice president of synergies. She was responsible for internal communications and was the founder and head of the group's internal university LVMH House. With a PhD in philosophy and and an MBA in industrial administration, Lanciaux was instrumental in the hiring of designers like Michael Kors at Celine and Antonio Marras at Kenzo and of executives like Sidney Toledano at Christian Dior and Yves Carcelle at Louis Vuitton.
www.lvmh.com
10 January 2007
LVMH creates new fashion post
LVMH has created a new position within the group to focus on its fashion brands, particularly the smaller ones with growth potential. The luxury giant has appointed Pierre-Yves Roussel chairman and chief executive of LVMH's fashion division. In this capacity, Roussel will be responsible for the fashion brands Celine, Givenchy, Kenzo, Marc Jacobs, Loewe, Pucci, Berluti, Rossi Moda and sourcing firm Kami and Interlux.
A former executive vice president of strategy and operations for the group, the 41 year old has been instrumental in tweaking a number of the fashion houses and contributing to their drive toward profitability. The brands's chief executives will report to him, while he in turn will continue to report to the group chairman Bernard Arnault. He is also a member of the group's executive committee. Roussel is a graduate of Wharton business school and an alumnus of McKinsey & Co, the consulting firm for which he worked in Paris, New York and Hong Kong before joining LVMH.
www.lvmh.com
8 January 2007
Eliasson art project for Vuitton
Louis Vuitton has commissioned artist Olafur Eliasson to create a centrepiece for the brand's Christmas window displays. The art project, Eye See You , will feature in over 350 windows worldwide. Made from a lamp in the shape of the pupil of an eye, it emits a monochromatic yellow light. The art work explores the principle of perception. “I started by considering what a window represents,” the artist says of the installation's conception. “You can generally say, I think, that there are two types of windows: windows that welcome your transgression, giving you easy access to what lies behind, and windows that function as boundaries. Typically, the windows of luxury goods stores are boundaries; even though you can see through them, you are aware of the inaccessibility of the goods. For Louis Vuitton, I thought it would be interesting to reflect on these boundaries.”
Eliasson also created a permanent installation for Louis Vuitton Fifth Avenue in New York called You See Me . All fees from both projects will be donated to 121Ethiopia.org, a charitable foundation established recently by Eliasson and his wife. These projects are not the first the artist created for Vuitton. He also designed Your Loss of Senses for the re-opening of the brand's flagship on the Champs-Elysées in Paris in October 2005.
www.louisvuitton.com
30 October 2006
LVMH growth continues in Q3
The ever-popular Louis Vuitton brand continues to drive profits at luxury group LVMH. The group has posted an 11 percent rise in revenues to €10.6 billion in the first nine months of 2006. Sales in the third quarter gained 6.8 percent to €3.66 billion. Despite tough comparables, organic growth was up in the double-digits in the third quarter and up 11 percent in the first nine months. Revenue growth of the Wines & Spirits division fell below analysts' expectations, but Fashion & Leather Goods continued to make headway with 11 percent organic growth to €3.73 billion in the third quarter. The group pointed out that the Louis Vuitton brand “performed extremely well in Europe and Asia and continued its strong momentum in the US ”. It cited the “huge” success of its new Monogram Mini line as well as the continued popularity of handbags like the Speedy. The group also mentioned rapid growth at the Fendi brand, thanks to Karl Lagerfeld's ready-to-wear collection and the phenomenal success of the Spy and Fendi B. bags. The label continues its programme of store renovations and new boutique openings. The group also mentioned strong performances of Loewe's Amazona handbag line, Berluti's La Démesure collection and accessories from the labels Marc Jacobs and Marc by Marc Jacobs. The Watches & Jewellery division saw sales soar 27 percent, while Perfumes & Cosmetics sales rose 13 percent. The only division that did not experience double-digit gains is company's selective retailing business.
LVMH anticipates maintained momentum in the second half and “confirms its objective of a very significant increase in its results in 2006.” However, during the conference call held on earlier this week, analysts were critical of the performance of Wines & Spirits and its effect on overall sales results. Trade magazine WWD even hinted at a slowdown in the luxury goods market, due to the strong euro. Independent investment researcher and credit rating firm Standard & Poor lowered its recommendation for the group from buy to hold this summer, citing concerns over further weakening of the dollar and the yen and a worsening of the macro economic environment, including the increased threat of terrorist attacks. It did say that it saw potential for the group's share price in the long term.
www.lvmh.com
18 October 2006
Louis Vuitton for the arts
Fashion house Louis Vuitton has announced plans to establish a €100 million art foundation in Paris . The museum that will house LVMH's art collection, as well as temporary exhibitions, has been designed by architect Frank Gehry and will be located in the Jardin d'Acclimatation in the Bois de Boulogne . “With the Louis Vuitton Foundation for Creation, we wanted to create an exceptional venue for Art and Culture in Paris ,” said LVMH chief executive Bernard Arnault. “It will be driven by what has always been our group's motivation: classicism and a break with the past, tradition and innovation.” Building will commence next year and the opening should take place in 2009 or 2010. Both Gehry as well as Louis Vuitton's creative director Marc Jacobs were at the presentation of the plans. “I am particularly honoured that Bernard Arnault and Yves Carcelle chose me to design and carry out the architectural project for this Foundation which will give concrete expression to years of exceptional patronage LVMH and Louis Vuitton in favour of arts and artists from all walks of life.”
The foundation will host at least two exhibitions each year, ranging from master works by Picasso to the dress that Christian Dior designed for the Duchess of Windsor. Arnault also said there would be an auditorium which would host musical events. Yves Carcelle, chief executive of Louis Vuitton, talked about the history the brand shares with the art world. In recent years it has collaborated with several artists. Takashi Murakami and Stephen Sprouse designed bags for the label, while the art works of James Turrell and Olafur Eliasson adorn the Louis Vuitton boutique interiors.
Arnault's major competitor Francois Pinault purchased Palazzo Grassi in Venice , where his extensive contemporary art collection can be admired since its opening in May. Pinault had tried to open an art foundation on the Ile Seguin in Paris , but was met with insurmountable paperwork. Arnault said he had encountered similar obstacles, but has nevertheless managed to realize his goal.
He said that LVMH would continue its patronage of the arts. For the past 15 years the group has sponsored 26 art exhibitions in France . Furthermore, the public will have free access to the Louis Vuitton Foundation for Creation.
www.lvmh.com
3 October 2006
LVMH H1 sales growth
Luxury giant Louis Vuitton Moet Hennessy has reported a 13 percent sales gain to €7 billion for the first six months period. It boasted “market share gains across the brands.” Underlying sales rose 12 percent, thanks to a continued strong performance of the fashion and leather goods arm. The Louis Vuitton and Fendi brands are still its bestsellers. The news has allayed fears that the luxury goods sector is showing a slowdown, particularly in the US . The results were slightly above analysts' expectations. The group reiterated that it expects “very significant growth in its results for 2006”. Antoine Belge, an analyst at HSBC, told the FT that the figures could counter investors' fears, stating that they had “overestimated” how badly a rise in US interest rates would affect luxury goods demand. Meanwhile, the watches and jewellery division grew 23 percent, led by Tag Heuer. The group said that there had been accelerated growth “in several Asian countries”, and attributed growth in Chinese tourism as a reason for the success of its retail operations.
www.lvmh.com
25 July 2006
Vuitton Japan 's new CEO sees growth potential
Kiyota Fuji, the new president and chief executive of Louis Vuitton Japan Co,, believes the luxury retailer still has room for growth in that market. The brand currently operates 52 stores, including 40 shop-in-shops in department stores, in Japan . It is now also making inroads into new markets such as jewellery, watches and eyewear. According to Fuji the sales of these product categories are booming. “Ready-to-wear is another category to grow, and this communicates the message from Louis Vuitton to consumers and increases the brand value of Louis Vuitton,” Fuji told WWD. “Business on the web is another possible approach to consumers.”
Fuji 's appointment signified the first change in top management at the firm's Japanese branch since its establishment 28 years ago. With a background in consulting and information technology and as a Japanese national, Fuji is ideally suited to his new role. He is also president of the Japanese arm of parent LVMH Moët Hennessy Louis Vuitton. The brand has recently expanded aggressively in the Japanese market, with high-profile flagship store openings in the Ginza , Omotesando and Roppongi districts. Earlier this year, Louis Vuitton opened two new shops and renovated four more. The company currently employs 2,000 people in that country. “We are very positive in marketing in this market,” Louis Vuitton chief executive Yves Carcelle told WWD. “The economy is growing and the market has become more sophisticated, but we invest a lot in creation, quality control and distribution control as well as opening stores. Introducing new products is also important.”
Analysts also believe that there is further growth potential for Vuitton in Japan . Luxury analyst Kana Sasaki at Mitsubishi UFJ Securities told WWD, “For Louis Vuitton, the Japanese market is not considered saturated yet. The strength of Louis Vuitton is its high recognition among people of wide generations, so opening more shops in middle-size cities makes sense. That's the integrated power of the brand that includes product development and image management.” Sasaki also said that consumption has been on the increase since last winter, as has been the number of visitors to Japanese department stores, adding, “And when the market warms up, it's time for the brand to expand business.”
www.louisvuitton.com
12 June 2006
LVMH Q1 sales soar
Luxury conglomerate LVMH has seen its first quarter sales rise 15 percent due to strong sales of champagne, handbags and anti-wrinkle creams. The company enjoyed robust performances in the US and Asia , with sales for the period reaching €3.56 billion. “All lights remain green,” LVMH's finance director Jean-Jacques Guiony said during a conference call. “All business and all regions witnessed an acceleration of their organic growth.” The most profitable divisions were wines and spirits, up 23 percent to €632 million; watches and jewellery with a 23 percent gain to €150 million; and fashion and leather goods up 14 percent to €1.29 billion. The results exceeded analysts' expectations.
The Louis Vuitton brand, the group's strongest, reported double-digit organic growth in all markets except Japan , where growth remained in the high single digits. The brand's first suede bags and monogram styles with perforated or raspberry-coloured leather have helped drive worldwide sales.
The group was also pleased with double-digit growth at Fendi, thanks to the continued success of the Spy bag and solid sales of its new B. Fendi line. “We are very proud of the turnaround of the brand,” said Guiony. He also pointed out that Marc Jacobs, Pucci, Berluti and Loewe all enjoyed “good momentum” but would not say much about progress at Celine, Givency and Donna Karan. Of Karan he only said that the brand had been affected by store closings and the discontinuation of some businesses. He added that “it's going according to our plans and we expect to get more growth in the months and years to come”.
Sales in the US and Asia were particularly strong, with gains in fashion and leather goods of 11 percent and 19 percent respectively. US sales were boosted by the “outstanding” performance of cosmetics chain Sephora. Sales in Europe and Japan continued to bounce back. Meanwhile, Christian Dior SA, parent of LVHM and fashion house Christian Dior, released similar first quarter results. Sales at Christian Dior Couture rose 13 percent to €165 million. The company said that all geographic regions had contributed to the growth. It also said that a top seller was its new Gaucho range of leather goods products.
www.lvmh.com
21 April 2006
Louis Vuitton sues Carrefour
Louis Vuitton is suing Carrefour for allegedly selling copies of the luxury purveyor's handbags for $6 each in its Shanghai branch. This is one of the first incidences in which a foreign company sues another in a Chinese court of law over an intellectual property dispute, reports the FT. Louis Vuitton is demanding damages in the amount of €61,000 to €75,000 from the French supermarket chain.
The case began earlier this week, with the prosecuting lawyers claiming that three versions of a Louis Vuitton handbag had been on sale in Carrefour store in December. With an increasing amount of luxury goods companies launching complaints against the Chinese counterfeit industry, US president George Bush is believed to broach the subject when he meets with Chinese president Hu Jintao in Washington today.
According to the Supreme People's Court of China, 13,424 cases were intellectual property cases were launched in that country last year, an increase of 21 percent. These cases included patents, counterfeit goods and trade secrets. According to the same source, foreign companies only account for 449 of these cases, a mere 3 percent. However, China-based lawyers have told the FT that these numbers are difficult to verify. They did, however, admit that there as been a recent rise in litigation cases between Chinese companies.
20 April 2006Mean Girl faces off for Vuitton
Teen starlet Lindsay Lohan might be the next face for luxury brand Louis Vuitton. According to WWD, the label is in talks with Lohan about featuring her in its next ad campaign. Although a deal has not yet been signed, sources think they may be close to reaching an agreement.
Lohan, who formerly starred in teen flicks like ‘Mean Girls' and ‘Freaky Friday' has already garnered modelling experience as the face of leather goods brand Dooney & Bourke.
If Lohan, who is only 19, gets the gig she will be joining a roster of celebrities who have fronted the label, including Uma Thurman, Jennifer Lopez, Scarlett Johansson and Chloë Sevigny. Group chief executive Bernard Arnault is a firm believer in the power of star allure when it comes to advertising.
Vuitton is said to spend somewhere around $250 million a year on advertising and rarely makes announcements regarding details until Arnault himself has approved the final images.
www.louisvuitton.com
8 March 2006
New CEO for Celine?
Luxury group LVMH has named Serge Brunschwig as the new chief executive of Celine. Brunschwig, who is the former managing director of Louis Vuitton, will succeed Jean-Marc Loubier. The latter is expected to assume a new position with the group, although it is not yet known what that will be. Brunschwig joined Louis Vuitton from Sephora Europe in 1995. At Vuitton he became responsible for 345 store and logistics.
At Celine, he will be responsible for breathing new life into the 61-year-old business. Meanwhile, Philippe Schaus will succeed Brunschwig as managing director of Louis Vuitton. Celine's sales volume has been estimated at $200 million. The brand counts approximately 110 stores world wide, including recent openings in Florence , Italy and Tokyo .
www.lvmh.com
7 March 2006
LVMH goes for growth
Luxury group LVMH last week reported an 11 percent sales gain to €13.9 billion (£9.5 billion) in 2005. Profits from recurring activities climbed 16 percent to €2.7 billion, surpassing analysts' expectations. The company said operating profit rose considerably thanks to strong demand for the Louis Vuitton brand, especially in China, where it realized double-digit organic revenue growth and an “exceptional” level of profitability. The brand's new Denim collection, designed by Marc Jacobs, did particularly well.
The company's Fashion and Leather Goods division, which is its largest, realized a 12 percent profit gain from recurring activities to 1.47 billion. The opening of the “Maison” on the Champs-Elysées in Paris contributed to this gain, as did the launch on this occasion of the Louis Vuitton's first sunglass collection. Fendi achieved an improvement in its profitability for the year, while Marc Jacobs and Pucci also enjoyed extremely strong performances.
The Perfume and Cosmetics business saw profits increase 15 percent from recurring operations. Parfums Christian Dior did particularly well, continuing to gain market share, especially in Europe and Asia. Guerlain also enjoyed an excellent year.
The Watches and Jewellery division achieved a fivefold rise in profits from recurring operations, thanks to “strong” innovation and the success of its iconic lines. TAG Heuer was the year's absolute winner, although Zenith, Dior Watches and Chaumet also enjoyed strong performances.
LVMH said it was “well positioned” for 2006, and would “pursue its strategy of concentrating on internal growth and the development of its leading brands in 2006”. It added that it would continue to focus on improving profitability as it did last year.
“The financial performance of the group in 2005 shows the effectiveness of a development strategy based on an exceptional portfolio of brands and on the complementary nature and successful geographic balance of its activities,” said group chairman and chief executive Bernard Arnault. “It has enabled LVMH to once again strengthen its position as global leader and to export worldwide its French and European manufactured products. With all these elements in place, 2006 will be another year of strong growth.”
Group net profit climbed from €1.2 billion to €1.4 billion in 2005, although the group had to deal with a €147 million charge related to the closure of its La Samaritaine department store in Paris.
www.lvmh.com
6 March 2006