10.25.21
Update: LVMH ranks at #8 on our latest report Top 20 Global Beauty Companies 2022.
LVMH is #9 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$55 billion
Beauty Sales (Perfumes & Cosmetics)
$6.4 billion
Key Personnel
Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazire, Development and Acquisitions; Christopher de Lapuente, Selective Retailing and Beauty
Major Products
Perfumes and Cosmetics brands, including Guerlain, Parfums Christian Dior, Givenchy, Acqua di Parma, Perfumes Loewe, Maison Francis Kurkdjian, Benefit Cosmetics, Fenty Beauty by Rihanna, Make Up For Ever, Kenzo Parfums, Fresh, KVD Vegan Beauty, Marc Jacobs Beauty; Sephora
New Products
Miss Dior Roses N’Roses, J’adore Infinissime perfume, Rouge Dior lipstick and makeup, Fenty Skin, by Rihanna, new Dior Homme, Dior Forever foundation and concealer, Dior Capture Totale, Guerlain’s Aqua Allegoria fragrance collection, Benefit: They’re Real! Magnet mascara, Acqua di Parma Bergamotto La Spugnatura
Comments
Like other luxury goods brands on our Top 20 list, LVMH took a hit in 2020 as many consumers turned to sweatsuits and bare faces for Zoom calls and mask wearing. But the brand with Bernard Arnault, the world’s wealthiest man at the helm (according to Forbes), says they also showed resilience. Total revenue for 2020 fell 17%, to a still very enviable $55 billion.
Perfumes & Cosmetics reported a 23% downturn in sales to $6.4 billion. As with other brands, the road to resilience and recovery cited online sales, consumers in China, and some improvement in the U.S. and Japan. At the height of the pandemic, in addition to producing large volumes of hand sanitizer that were donated to hospitals, LVMH used certain facilities, including a Dior workshop, to manufacture masks and gowns.
In 2020, LVMH achieved their target of a 10% improvement in the Environmental Performance Index (EPI) of packaging for their Perfumes & Cosmetics businesses.
With the decline in makeup—and in global duty-free spending, LVMH’s largest brands chose to be selective in their distribution. Good resilience resulted from the growth of skincare and online sales, particularly in Asia. Christian Dior saw a gradual improvement in the second half of the year, due especially to the success of its new products Miss Dior Roses N’Roses and J’adore Infinissime perfume, and Rouge Dior in makeup. Guerlain benefited from the skincare market, with the continued success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin, developed by Rihanna, is off to a great start.
In the Perfumes and Cosmetics category by region, revenues were strongest for the year in Asia (excluding Japan: 45%); followed by Europe (excluding France); then the U.S., France and Japan.
Dior saw a particularly strong uptick in sales in China. Guerlain’s Abeille Royale and Orchidée Impériale lines, backed by Guerlain’s commitment to biodiversity and sustainable innovation also did well. In fragrances, Guerlain’s Aqua Allegoria collection achieved solid gains, as did the Maison’s Haute Parfumerie collections.
2021 Highlights
In May, Guerlain teamed with UNESCO for its “Women for Bees” program—which combines female entrepreneurship with the preservation of bees—with support from French beekeeper training center the Observatoire Français d’Apidologie. Angelina Jolie, a Guerlain muse since 2016, is the face of the program. The first promotion of women has completed a month of training to learn the theory and practice of beekeeping. On July 20 and 21, Guerlain presented its broad range of commitments to protecting biodiversity and passing on the wonders of nature to future generations.
In June, Dior announced a new face of J’adore—transgender Chinese celebrity Jin Xing, a popular dancer and former army colonel.
In July, in a move to make a splash in the UK cosmetics market, Sephora announced a deal to acquire UK e-commerce platform Feelunique (valued at £132 million) from Palamon Capital.
In August 2021, LVMH launched Fenty Eau de Parfum by Rihanna. Reportedly, the superstar’s passion for fragrance ultimately led her to Grasse, France, where she worked alongside world-renowned LVMH master perfumer Jacques Cavallier Belletrud to create the gender-neutral fragrance. The bottle was designed to fit perfectly in her hand and represents “a harmonious balance of femininity and masculinity, vintage and modern, with its curved body and beautiful amber-brown shade (Rihanna’s favorite color!).”
Looking Ahead
On the upswing, LVMH reported first half 2021 revenue of $34 billion—an increase of 56% over first half 2020. Perfumes & Cosmetics came in at $3.6 billion for the period—up 31% over first half 2020.
Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability.”
Specifically, the Perfumes & Cosmetics group recorded organic revenue growth of 37% in the first half of 2021 compared to the same period of 2020. Organic revenue was down 3% compared to the first half of 2019. The Group’s major brands have maintained a policy of selective distribution as a means of supporting their revenues. Online sales created a large boost, partially offsetting the impact of halted international travel and the closure of brick-and-mortar. Parfums Christian Dior enjoyed a strong acceleration in its business with local customers, extending the recovery that began at the end of 2020. The continued success in iconic perfumes Sauvage, Miss Dior and J’Adore, the roll-out of Rouge Dior lipstick and the rapid progress of skincare lines Prestige and Capture contributed to the excellent performance of the Maison. Guerlain showed great results, driven by skincare, thanks especially to Abeille Royale and Orchidée Impériale. Parfums Givenchy is gaining market share due to the success of L’Interdit perfume and the relaunch of the Irresistible collection. Fresh did well in ultra-premium skincare and Maison Francis Kurkdjian continues to post exceptional growth.
LVMH plans to have six airport stores open in China by the end of 2022, highlighting its focus on China; by 2025 it expects to have a local store in every Chinese province—and its belief that airport retail will play a major role in terms of serving Chinese consumers.
Read Next: Johnson & Johnson is #10.
LVMH is #9 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$55 billion
Beauty Sales (Perfumes & Cosmetics)
$6.4 billion
Key Personnel
Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazire, Development and Acquisitions; Christopher de Lapuente, Selective Retailing and Beauty
Major Products
Perfumes and Cosmetics brands, including Guerlain, Parfums Christian Dior, Givenchy, Acqua di Parma, Perfumes Loewe, Maison Francis Kurkdjian, Benefit Cosmetics, Fenty Beauty by Rihanna, Make Up For Ever, Kenzo Parfums, Fresh, KVD Vegan Beauty, Marc Jacobs Beauty; Sephora
New Products
Miss Dior Roses N’Roses, J’adore Infinissime perfume, Rouge Dior lipstick and makeup, Fenty Skin, by Rihanna, new Dior Homme, Dior Forever foundation and concealer, Dior Capture Totale, Guerlain’s Aqua Allegoria fragrance collection, Benefit: They’re Real! Magnet mascara, Acqua di Parma Bergamotto La Spugnatura
Comments
Like other luxury goods brands on our Top 20 list, LVMH took a hit in 2020 as many consumers turned to sweatsuits and bare faces for Zoom calls and mask wearing. But the brand with Bernard Arnault, the world’s wealthiest man at the helm (according to Forbes), says they also showed resilience. Total revenue for 2020 fell 17%, to a still very enviable $55 billion.
Perfumes & Cosmetics reported a 23% downturn in sales to $6.4 billion. As with other brands, the road to resilience and recovery cited online sales, consumers in China, and some improvement in the U.S. and Japan. At the height of the pandemic, in addition to producing large volumes of hand sanitizer that were donated to hospitals, LVMH used certain facilities, including a Dior workshop, to manufacture masks and gowns.
In 2020, LVMH achieved their target of a 10% improvement in the Environmental Performance Index (EPI) of packaging for their Perfumes & Cosmetics businesses.
With the decline in makeup—and in global duty-free spending, LVMH’s largest brands chose to be selective in their distribution. Good resilience resulted from the growth of skincare and online sales, particularly in Asia. Christian Dior saw a gradual improvement in the second half of the year, due especially to the success of its new products Miss Dior Roses N’Roses and J’adore Infinissime perfume, and Rouge Dior in makeup. Guerlain benefited from the skincare market, with the continued success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin, developed by Rihanna, is off to a great start.
In the Perfumes and Cosmetics category by region, revenues were strongest for the year in Asia (excluding Japan: 45%); followed by Europe (excluding France); then the U.S., France and Japan.
Dior saw a particularly strong uptick in sales in China. Guerlain’s Abeille Royale and Orchidée Impériale lines, backed by Guerlain’s commitment to biodiversity and sustainable innovation also did well. In fragrances, Guerlain’s Aqua Allegoria collection achieved solid gains, as did the Maison’s Haute Parfumerie collections.
2021 Highlights
In May, Guerlain teamed with UNESCO for its “Women for Bees” program—which combines female entrepreneurship with the preservation of bees—with support from French beekeeper training center the Observatoire Français d’Apidologie. Angelina Jolie, a Guerlain muse since 2016, is the face of the program. The first promotion of women has completed a month of training to learn the theory and practice of beekeeping. On July 20 and 21, Guerlain presented its broad range of commitments to protecting biodiversity and passing on the wonders of nature to future generations.
In June, Dior announced a new face of J’adore—transgender Chinese celebrity Jin Xing, a popular dancer and former army colonel.
In July, in a move to make a splash in the UK cosmetics market, Sephora announced a deal to acquire UK e-commerce platform Feelunique (valued at £132 million) from Palamon Capital.
In August 2021, LVMH launched Fenty Eau de Parfum by Rihanna. Reportedly, the superstar’s passion for fragrance ultimately led her to Grasse, France, where she worked alongside world-renowned LVMH master perfumer Jacques Cavallier Belletrud to create the gender-neutral fragrance. The bottle was designed to fit perfectly in her hand and represents “a harmonious balance of femininity and masculinity, vintage and modern, with its curved body and beautiful amber-brown shade (Rihanna’s favorite color!).”
Looking Ahead
On the upswing, LVMH reported first half 2021 revenue of $34 billion—an increase of 56% over first half 2020. Perfumes & Cosmetics came in at $3.6 billion for the period—up 31% over first half 2020.
Bernard Arnault, chairman and CEO of LVMH, said: “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis. The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability.”
Specifically, the Perfumes & Cosmetics group recorded organic revenue growth of 37% in the first half of 2021 compared to the same period of 2020. Organic revenue was down 3% compared to the first half of 2019. The Group’s major brands have maintained a policy of selective distribution as a means of supporting their revenues. Online sales created a large boost, partially offsetting the impact of halted international travel and the closure of brick-and-mortar. Parfums Christian Dior enjoyed a strong acceleration in its business with local customers, extending the recovery that began at the end of 2020. The continued success in iconic perfumes Sauvage, Miss Dior and J’Adore, the roll-out of Rouge Dior lipstick and the rapid progress of skincare lines Prestige and Capture contributed to the excellent performance of the Maison. Guerlain showed great results, driven by skincare, thanks especially to Abeille Royale and Orchidée Impériale. Parfums Givenchy is gaining market share due to the success of L’Interdit perfume and the relaunch of the Irresistible collection. Fresh did well in ultra-premium skincare and Maison Francis Kurkdjian continues to post exceptional growth.
LVMH plans to have six airport stores open in China by the end of 2022, highlighting its focus on China; by 2025 it expects to have a local store in every Chinese province—and its belief that airport retail will play a major role in terms of serving Chinese consumers.
Read Next: Johnson & Johnson is #10.
