LVMH Moët Hennessy • Louis Vuitton S.A.

Type	Société Anonyme
Traded as	Euronext: MC
Industry	Apparels, accessories
Predecessor(s)	Moët Hennessy Louis Vuitton
Founded	1987 (1987)
Headquarters	Paris, France
Area served	Worldwide
Key people	Bernard Arnault (Chairman & CEO) Antonio Belloni (Managing director)
Products	Clothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, watches, wines
Services	Department stores
Revenue	€20.32 billion (2010)[1]
Operating income	€4.169 billion (2010)[1]
Profit	€3.032 billion (2010)[1]
Total assets	€37.16 billion (2010)[1]
Total equity	€18.20 billion (2010)[1]
Employees	83,540 (2010)[1]
Parent	Christian Dior (via Financière Jean Goujon)
Subsidiaries	List of subsidiaries
Website	LVMH.com

LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational apparels and accessories company headquartered in Paris, France. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer.^[2][3][4] It controls around 60 subsidiaries that each manage a small number of prestigious brands. The subsidiaries are often managed independently.

Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.36% of its shares, and 59.01% of its voting rights.^[5] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH.^[6] Arnault's successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont have also created extended portfolios of luxury brands. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.^[7]

Financial data[link]

Corporate structure[link]

LVMH is based in 30 avenue Hoche in the 8th arrondissement, Paris, France.^[2] The company is listed on the Euronext Paris exchange,^[9] and is a constituent of the CAC 40 index. As of 2010, the group had revenues of €20.3 billion with a net income of just over €3 billion.^[1] The group currently employs more than 83,000 people.^[1] 30% of LVMH's staff work in France. LVMH operates over 2,400 stores worldwide.^[10] Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.

Shareholders[link]

At the end of 2010, the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group's control amounted to 47.64% of LVMH's stock (with 42.36% held through Christian Dior S.A. and 5.28% held directly) and 63.66% of its voting rights (59.01% by Dior and 4.65% directly).^[5] A further 2.43% of shares were declared as treasury stock, with the remainder being free float.^[5] LVMH hold 66% of the drinks division, Moét Hennessy, with the remaining 34% held by Wong Yuchin J.P.^[11]

Subsidiaries[link]

A partial list including some of LVMH's most well known brands and subsidiaries:^[10]

On 7 March 2011, LVMH announced the acquisition of the 50.4% family-owned shares of the Italian jeweller Bulgari and the intention to make a tender offer for the rest (publicly owned).^[12] The transaction is about $5.2 billion.^[13]

References[link]

External links[link]

Wikimedia Commons has media related to: Moët Hennessy Louis Vuitton

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Bernard Arnault
Born	(1949-03-05) 5 March 1949 (age 63) Roubaix, France
Residence	Paris, France
Nationality	French
Alma mater	École Polytechnique
Occupation	Chairman & CEO of LVMH Chairman of Christian Dior S.A.
Net worth	US$ 41 billion (2012)[1]
Religion	Christian[2]
Spouse	Hélène Mercier (Pianist)
Website
LVMH.com

Bernard Arnault (pronounced: [bɛʁnaːʁ aʁno]) (born 5 March 1949) is a French business magnate best known as the chairman and CEO of the LVMH, the largest luxury-products company in the world.^[3][4][5] According to Forbes magazine, Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of US$41 billion.^[6] He has also been named by Forbes as "the fashion person of 2011".^[7]

In 2007 Arnault was named Commander of the Legion of Honour, France’s highest order. The same year, he was featured in Time magazine’s annual Time 100 issue as one of the 100 most influential people in the world.

Early life and career[link]

Bernard Jean Étienne Arnault was born March 9, 1949, in Roubaix. His father Jean Leon Arnault was a manufacturer, owner of a civil engineering company, Ferret-Savinel. After graduating from the Maxence Van Der Meersch High School in Roubaix, Bernard Arnault was admitted to the École Polytechnique (X1969) from which he graduated with an engineering degree in 1971.

Bernard Arnault has been married twice, and is the father of five children. As the director for LVMH, his daughter Delphine Arnault is actively involved in the management of the luxury group. His son Antoine Arnault is Head of Communications for Louis Vuitton. His second wife, Hélène Mercier, is a pianist from Quebec. The couple has three sons. His nephew Harry Seaman is also involved in LVMH, overseeing sales and he is currently researching in the U.K.

Bernard Arnault was a witness at President Nicolas Sarkozy's wedding to Cécilia Ciganer-Albéniz. In January 2007 Kathryn Blair, the daughter of former British Prime Minister Tony Blair, completed an intensive French language and culture course at France's Sorbonne University. Tony Blair has been criticised for accepting an invitation on her behalf from Bernard Arnault. During Kathryn Blair's course, which ran from 12 October 2006 to 26 January 2007, she is thought to have been provided with an accommodation, security and transport package worth around £80,000.^[8]

Férinel[link]

After graduation, in 1971, he joined his father's company. In 1976, he convinced his father to liquidate the construction division of the company for 40 million French francs, and to change the focus of the company to real estate. Using the name Férinel, the new company developed a specialty holiday accommodation. Named director of company building in 1974, he became CEO in 1977. In 1979, he succeeded his father as president of the company. In 1981, Bernard Arnault emigrated to the United States and created Ferinel Inc. which developed condominiums in Florida.^[9]

Christian Dior[link]

Three years later, when the French Socialists switched to a more conservative economic course, Bernard Arnault returned to France and became the CEO of Financière Agache, a luxury goods company. With the help of Antoine Bernheim, a senior partner of Lazard Frères et Cie., the Paris office of Lazard Frères & Co., and government subsidies conferred in exchange for a promise not to downsize, Bernard Arnault acquired Boussac, a textile company in turmoil. Boussac owned Christian Dior, the department store Le Bon Marché, the retail shop Conforama and the diapers industrial Peaudouce. The Arnault family put up just $15 million of their own money, with Lazard supplying the rest of the reported $80 million purchase price.^[10] Following receipt of about 2 billion francs from the state in exchange of the promise to safeguard 16,000 jobs in the group, Bernard Arnault sent a letter to Laurent Fabius. In the letter he stated: “I will personally handle the management of DBSF and I will proceed to the setting up of the industrial and social plan as it was communicated to the administration.” Bernard Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior brand, and Le Bon Marché department store.^[11] In 1987, the group had to refund a part of the 51,5 million Euros it had benefited. These procedures did not reach Bernard Arnault who focused on Christian Dior’s development and on his acquisitions in the luxury sector (he became CEO of Christian Dior in 1985 and gathered the perfume and fashion departments in 1989).

LVMH[link]

In 1987, shortly after the creation of LVMH, the new luxury group resulting from the merger between two companies, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton. Moët Hennessy held Moët & Chandon Champagne, Ruinart Champagne, Champagne Mercier, Canard-Duchêne and Hennessy cognac. Louis Vuitton was the owner of Louis Vuitton Malletier, Givenchy, Veuve Clicquot Ponsardin Champagne. The new group held property rights to Dior perfumes, which Bernard Arnault craved to incorporate into Dior Couture. He created a holding company of which he owned 60% and Guinness, who had a distribution agreement with Moët-Hennessy, owned 40%. Following the October 1987 stock market crash, he capitalized on the lower quoted price and soon owned 43% of LVMH. In 1988, the group was looking for other investors. Henri Racamier, CEO at that time, asked Bernard Arnault to invest in the company. With more than 25% of shares, Bernard Arnault became one on the main shareholders of the group.

During this period, the management met difficulties because of the differences of view regarding the group’s strategic choices. Alain Chevalier was considering the sale of the wine and spirits department to other groups, whereas minor shareholder Henri Racamier wanted to restore Louis Vuitton’s independence. In this context, Bernard Arnault believed the group had to follow a unique direction and tried to take the leadership of LVMH. To take the control of the group, Bernard Arnault launched a takeover bid. In July 1988, he became LVMH’s first shareholder and, with the help of Lazare Bank and Crédit Lyonnais, majority shareholder in January 6, 1989. Alain Chevalier left the group and on the January 13th 1989, Bernard Arnault was unanimously elected chairman of the executive management board. Henri Recamier tried to cancel Bernard Arnault takeover bid.^[12] However, on 16 May 1989, French stock market regulator legitimated the operation.

He then consolidated his position by purging executives from both companies and declared himself linchpin for the group’s future. He also appointed his father Jean Leon Arnault Chairman of the Supervisory board before officially taking over as Chairman & CEO in 1989.^[13]

Since then, Bernard Arnault led the company through an ambitious development plan, turning it into one of the largest luxury groups in the world, alongside Swiss luxury giant Richemont and French based PPR Group. In eleven years, LVMH value has been multiplied by fifteen. In the meantime, the sales and profit progressed by 500%. Bernard Arnault promoted the decisions decentralization concerning the brands of the group. The brands are now considered as firms with their own familial history.

Bernard Arnault thinks LVMH has “shared advantages”: the strongest brands help financing those that are growing. Bernard Arnault has a portfolio of major brands from the luxury sector for which the stability is secured. This solidity allows new acquisitions and the group development. Thanks to this strategy, Christian Lacroix could open his own fashion house.

In July 1988, Bernard Arnault acquired Céline. In 1993, LVMH acquired Berluti and Kenzo. In the same year, Bernard Arnault bought out the French economic newspaper La Tribune. He could not turn it around, in spite of the 150 million Euro of investment. He sold La Tribune in November 2007 in order to buy the other French economic newspaper Les Échos, for 240 million Euros.

In 1994, LVMH acquired the perfume firm Guerlain. In 1996, Bernard Arnault bought out Loewe and it was followed by Marc Jacobs and Sephora in 1997. Were also integrated to the group: Thomas Pink in 1999, Emilio Pucci in 2000 and Fendi, DKNY and La Samaritaine in 2001.

Among other companies, Arnault also owned the art auction house Phillips de Pury & Company from 1999 to 2003.^[14] He also bought out the first French auctioneer Tajan.^[15]

Between 1998 and 2001, he had a passion for new economy and invested in boo.com, Libertysurf and Zebank through his holding Europatweb. The March 2000 Internet crash and 9/11 attacks convinced him to leave the sector.

In the 1990s, Bernard Arnault decided to gather his activities in a unique building in New York in order to symbolize LVMH’s strength and grandeur in the United States. He chose Christian de Portzamparc^[16] to realize this project, in which he also committed himself.^[17] On December 8, 1999, LVMH tower was unveiled in front of Hillary Clinton.^[18]

In 2005, he became the richest man in France. According to the Forbes list of Billionaires 2006, he pushed in front of his fellow-countrywoman Liliane Bettencourt, with a $30 billion fortune.

In 2007, he acquired 10.69% of France's largest supermarket retailer and the world's second largest food distributor, Carrefour through his Blue Capital, which is jointly owned by California property firm Colony Capital.

In 2008, he invested into the yacht business and bought Princess Yachts for 253 million Euros. He then took control of Royal van Lent for an almost identical sum.^[19]

Arnault's main business competitors are:

• French businessman François-Henri Pinault, whose holding company PPR owns Gucci, Yves Saint Laurent, Stella McCartney, Sergio Rossi, Bottega Veneta, Boucheron, Roger & Gallet, Bédat & Co and Christie's.

• Swiss-based Richemont, which owns Cartier, Van Cleef & Arpels, Net-a-Porter, Piaget, Baume et Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Vacheron Constantin, Dunhill, Lancel, Montblanc, Old England, Purdey, Chloé, and Shanghai Tang.

Patronage[link]

Mr Arnault is a noted art collector. To develop his patronage actions, Bernard Arnault appealed to Jean-Claude Claverie, Jack Lang’s former counsellor in French Ministry of Culture. Thanks to their impulse, LVMH became a major agent in French patronage.

The group supported about ten exhibitions as “Le grand monde d’Andy Warhol”^[20] and “Picasso et les maîtres”^[21] at le Grand Palais in Paris. LVMH also endorsed the patronage of “l’atelier d’Alberto Giacometti” and “Yves Klein” at Centre Georges Pompidou.

In addition, LVMH foundation created the “young creators LVMH award”, an international competition opened to French and international beaux-arts students.^[22] Each year, six grants are allocated to the winners.

The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia already the loan of instruments.

Following the example of business man François Pinault, he created in 2006 a Louis Vuitton foundation for contemporary art. Designed by Frank Gehry, the construction of the foundation should open at the Jardin d'acclimatation in 2013.^[23]

Awards[link]

Bernard Arnault received the title of Commander of the French Legion of Honour on February 10, 2007. He was promoted to the dignity of Grand Officer of the French Legion of Honour on 14 July 2011.^[24]

See also[link]

• French Rich List

References[link]

External links[link]

• Being LVMH's Bernard Arnault- Profile story from WSJ Magazine
• A Guide to the Principal Holdings of Bernard Arnault also in WSJ Magazine
• New York Times, May 15, 2005

2003-2008 Hotel Renaissance Wagram in Paris

2001-2009 Hergé museum, Louvain-la-Neuve in Belgium

2001-2004 Headquarters for the press group Le Monde in Paris
Photo Kamel Khalfi

1984-1995 The City of Music in Paris
Photo Nicolas Borel

Christian de Portzamparc (born 5 May 1944 in Casablanca, Morocco) is a French architect and urbanist. He graduated from the École Nationale des Beaux Arts^[1] in Paris in 1970 and has since been noted for his bold designs and artistic touch; his projects reflect a sensibility to their environment and to urbanism that is a founding principle of his work.^[2] He won the Pritzker Prize in 1994.^[3]

Career[link]

Christian de Portzamparc was born in Casablanca in 1944, and graduated from the School of Fine Arts in Paris in 1970. He created his agency in 1980, supported by Marie-Élisabeth Nicoleau, Étienne Pierrès and Bertrand Beau, and later welcomed Bruno Durbecq, Céline Barda, Léa Xu, André Terzibachian and Clovis Cunha. Based in Paris, the agency has ‘satellite’ offices near building sites, in addition to offices in New York and Rio de Janeiro, and represents a team of 80 people, drawn from all corners of the globe.^[4]

Both an architect and urban planner, Christian de Portzamparc is implicated in the research of form and meaning, as well as being a constructer. His work focuses on research over speculation and concerns the quality of life; aesthetics are conditioned by ethics, and he maintains that we have too often dissociated one from the other. Christian de Portzamparc focuses on all scales of construction, from simple buildings to urban re-think; the town is a founding principal of his work, developing in parallel and in crossover along three major lines: neighbourhood or city pieces, individual buildings and sky-scrapers.^[5]

The growth of Christian de Portzamparc’s urban projects through competitions and studies led to an evolution of methods, a practical result of theoretical research and analysis. This renewed vision of urban structure, which he named the “open block” in the 80s, can be seen today through projects such as the Quartier Masséna - Seine Rive Gauche (since 1995), an entire neighbourhood of Paris, and at La Lironde (since 1991), in the south of France, both of which illustrate his master-planning and coordination techniques.^[6]

Christian de Portzamparc’s iconic buildings, urban poles of attraction, create environments wherein the interior and exterior spaces interpenetrate, working as catalysts in cityscape dynamics. This method of functioning came into play in major cultural programmes, often dedicated to dance and music, the most recent examples of which include a 1500 seat philharmonic hall, 300 seat chamber hall and 120 seat electro-acoustic hall in Luxembourg, completed in 2005, plus a unique 1800 seat concert hall that transforms into a 1300 seat opera house, which is under construction, amongst other music halls, as part of the project Cidade da Música in Rio de Janeiro, Brazil.

The towers created by Christian de Portzamparc have, since the beginning, been a result of his studies of the vertical and sculptural dimension, concentrating on the prismatic form, the most recognised example of which is the LVMH Tower created in 1995 in New York, USA, for which Christian de Portzamparc received many accolades, soon to be accompanied by the residential tower at 400 Park avenue in Manhattan, whose site is due to commence in 2010.

In 1994 Christian de Portzamparc became the first French architect to gain the prestigious “Pritzker Architectural Prize”, at the age of 50. In 2006, the Collège de France created a 53rd chair dedicated ‘artistic creation’, and called on Christian de Portzamparc to be its first occupant. Today, he continues his research work through projects that are under way around the world, expressing his freshness, pleasure and passion through a perfectionism that has characterised his work from the beginning.

Principal completed projects[link]

• 1971-1974 Château d’eau, Marne la Vallée
• 1975-1979 Les Hautes-Formes housing project, Paris
• 1983-1987 Dance school for the Paris Opera, Nanterre
• 1985-1987 Beaubourg Cafe, Paris
• 1988-1990 Musée Bourdelle, Paris
• 1989-1991 Nexus II, Fukuoka, Japan
• 1984-1995 The City of Music, Paris^[7]
• 1991-1995 Crédit Lyonnais tower, Lille
• 1993-1999 Law courts, Courts of Justice, Grasse
• 1993-2006 Centre of science, library and museum “Les Champs Libres”, Rennes
• 1994-1999 Extension of the Palais des Congrès Porte Maillot, Paris
• 1995-1999 LVMH Tower, New York^[8]
• 1997-2003 French Embassy of Germany, Berlin
• 2001-2004 Headquarters for the press group Le Monde, Paris
• 1997-2005 Philharmonie Luxembourg^[9]
• 2000-2006 “De Citadel”, housing and commercial centre Almere
• 2007-2009 Hergé museum, Louvain-la-Neuve, Belgium

Principal projects under construction[link]

• 1991-2009 Development of the Lironde Gardens and construction of two Montpellier blocks
• 1995-2009 Urban development of the Masséna district, Paris
• 1998-2009 Croix Rousse Hospital, Lyon
• 2001-2008 Société Générale tower, La Défense, Paris
• 2002-2009 “400 Park Avenue South” residential tower in Manhattan, New York
• 2002-2011 Concert halls, cinema, school of music Cidade da Musica, Rio de Janeiro
• 2003-2008 Renaissance Paris Wagram Hotel, Paris
• 2006-2009 Regional hall, Hôtel de Région Rhône Alpes, Lyon
• 2004-2008 Multiplex Europalaces-Gaumont, Rennes
• 2004-2008 Residential development “La prairie au Duc”, Nantes
• 2004-2008 Bastide residential development in Bordeaux
• 2011-2015 Amphitheater District in Metz
• 2011-2013 One 57, a 75-story hotel/condominium tower (marketed as 90) in New York City

Awards and distinctions[link]

• 1988 - Equerre d’Argent – awarded by the press group Le Moniteur for the Dance School of the Paris Opera in Nanterre^[10]
• 1989 - Commander of the Order of Arts and Letters – awarded by the French Ministry of Culture
• 1990 - The Great Prize of Architecture of the City of Paris – awarded by the Mayor of Paris
• 1992 - Médaille d’Argent – awarded by the French Academy of Architecture
• 1993 - Great National Prize of Architecture – awarded by the French Ministry of Urbanism and Transport
• 1994 - Pritzker Prize of Architecture – awarded by the Hyatt Foundation
• 1995 - Equerre d’Argent awarded by the French press group Le Moniteur for the City of Music – Conservatory of Music and Dance in Paris
• 2001 - Business Week and Architectural Record Award for the LVMH tower in New York (USA)^[11]
• 2004 - The Great Prize of Urbanism – awarded by an international jury who 'wanted to congratulate a work with achievements of high quality combined with city vision and philosophy articulating theoretical concepts and concrete realisations, while developing an optimistic vision for the future through his works and writings'^[12]
• 2005 - MIPIM Award for the remodelling of the building for the press group Le Monde in Paris^[13]

Publications and biographies[link]

• Exhibition catalogue « Rêver la ville », Sophie Trelcat, Paris, Le Moniteur, 2007
• Architecture : figures du monde, figures du temps, Leçons inaugurales au Collège de France, Collège de France/Fayard, Paris, 2006
• Voir écrire, Christian de Portzamparc & Philippe Sollers, Paris, Folio Gallimard, 2005
• Christian de Portzamparc by Gilles de Bure Edited by Terrail, 2003
• Christian de Portzamparc, entretien avec Y. Futagawa, G.A. Document extra 04 / in Studio Talk interview with 15 architects (Tokyo, A.D.A edita,2002
• Christian de Portzamparc by Riccardo Florio, Edited by Officina Edizioni, 1997
• Christian de Portzamparc G.A.Document, 1996
• Christian de Portzamparc Disegno e forma dell’architettura per la città, R.Florio (Roma, Officina Edizioni, 1996)
• Généalogie des formes by Christian de Portzamparc, Edited by Dis Voir, about free drawings and paintings,1996
• Christian de Portzamparc Edited by Arc en Rêve/ Birkhauser, 1996
• Scènes d'Atelier Edited by Centre Georges Pompidou, 1996
• Christian de Portzamparc by Jean Pierre Le Dantec Edited by Le Regard, 1996
• Christian de Portzamparc Urban situations Edited by Gallery MA - Tokyo - Japan 1991
• Christian de Portzamparc Published by Le Moniteur, 1984–1987

Books on projects[link]

• La philharmonie de Luxembourg, entretien avec C. de Portzamparc, M. Brausch. (Luxembourg, Fonds d’Urbanisation et d’Aménagement du Plateau de Kirchberg, 2003)
• La tour LVMH, entretien avec C. de Portzamparc «Portzamparc ou l’esprit des lieux». «Christian de Portzamparc The LVMH Tower», J. Giovannini, F.Rambert, (Connaissance des Arts hors série, Paris, 1999)
• De la danse - école du ballet de L’Opéra de Paris, C. de Portzamparc (Paris, Les éditions du Demi-Cercle, 1990)
• La cité de la musique, M. Bleuse, P. Boulez, S. Goldberg, J-C. Casadesus, O. Messiaen, P. Sollers, H. Tonka,C. de Portzamparc (Paris, Champ Vallon, 1986)
• Rue des Hautes Formes, C. de Portzamparc (Paris, Régie immobilière de la ville de Paris, RIVP, 1979)

References[link]

• Paris 2000 New Architecture by Sam Lubell, The Monacelli Press

External links[link]

• Official site
• Masséna urban plan review. a+t architecture publishers