LVMH Maintains Its Global Leadership Position In The Luxury Industry

Louis Vuitton, Virgil Abloh statue

Image: Louis Vuitton

LVMH Moët Hennessy Louis Vuitton, a French luxury conglomerate, had an outstanding 2021, with growth exceeding expectations. Last year, the owner of Louis Vuitton, Dior, Bvlgari, and TAG Heuer made €64.2 billion in revenue. When compared to 2020, this represents a 44% increase, and a 20% increase when compared to 2021. The company’s profit more than doubled year on year to €17.15 billion, representing a staggering 107% increase over 2020 and a 49% increase over 2019.  “The performance for the year confirms a return to strong growth momentum following the severe disruption to the first half of 2020 resulting from the global pandemic,” LVMH said in a statement.

LV x Nigo, LV²

Image: Louis Vuitton

The iconic brands from the Fashion & Leather Goods business unit continue to drive growth at the world’s largest luxury company. It experienced organic revenue growth of 47% in 2021 compared to 2020 and 42% compared to 2019. Profit from recurring operations increased by 79% compared to 2020 and 45% compared to 2019. The brands Louis Vuitton and Dior are leading the charge, with the former celebrating the bicentenary of its founder’s birth. The year 2021 also saw the premature departure of Virgil Abloh, the Men’s Artistic Director of Louis Vuitton. The Maison paid tribute to the celebrated designer’s life and legacy with the Miami fashion show “Virgil Was Here.”

The momentum at Dior continues with the collections of Maria Grazia Chiuri and Kim Jones. These were presented in Athens and Paris, and the majority of them were well received. Other brands, such as Celine, Loewe, and Marc Jacobs, also performed exceptionally well. The acquisition of Tiffany & Co. in the Watches & Jewellery division aided the business group in achieving a revenue increase of 167% in 2021 compared to 2020. Tiffany was consolidated within the division for the first time last year. Profit from recurring operations was approximately six times higher than in 2020, representing a 128 percent increase over 2019.

Tiffany Knot, Anya Taylor Joy

Image: Tiffany & Co.

Tiffany’s “record performance” was attributed to the company’s numerous impactful innovations and collaborations, according to the company. For its “About Love” campaign, the American jeweller enlisted the help of big names like Jay-Z and Beyoncé, as well as trending artists like Daniel Arsham for a limited-edition collection. Other brands, such as Bvlgari, had a successful year as well, with the introduction of its Magnifica High Jewellery collection and the opening of new boutiques. TAG Heuer’s partnership with Porsche and the release of its Super Mario smartwatch collection had also been successful. Both Chaumet and Zenith had had a lot of success with their own product launches.

TAG Heuer Connected x Super Mario

Credit: TAG Heuer

“Within the context of a gradual recovery from the health crisis, LVMH is confident in its ability to maintain its current growth momentum,” the company said. “The Group will continue to pursue a strategy focused on developing its brands building on strong innovation and investments as well as a constant quest for quality of their products, of their desirability and of their distribution.” With this record-breaking result, LVMH is entering the new year with confidence and continues to take point in the global leadership position in the luxury world.