10.17.24
LVMH is #7 on our Top Global Beauty Companies 2024 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#7 LVMH
France
www.lvmh.com
The company reported strong movement in fragrances and makeup across all regions—as well as the ongoing global success of Dior’s Sauvage, which was once again the world’s best-selling fragrance in 2023. Sephora, too, boosted the bottom line, and according to LVMH, earned its position as “the world leader in beauty retail.”
The Perfumes & Cosmetics business group posted organic revenue growth of 11% in 2023 thanks to its “highly selective retail policy and dynamic innovation strategy, backed by the scientific excellence of LVMH’s research center.” Profit from recurring operations was up 8%. The Christian Dior brand led the way, extending its lead in key markets.
Fragrances were once again boosted by the success of the iconic Dior scents—Sauvage, Miss Dior, and J’adore—as well as Francis Kurkdjian’s latest creation, L’Or de J’adore. Makeup (with Dior Addict) and skincare (with Prestige and L’Or de Vie) also contributed to the Maison Dior’s growth. Guerlain continued to grow, driven by the popularity of its Aqua Allegoria line and its L’Art et la Matière high-end fragrance collection, as well as the popularity of its Terracotta Le Teint makeup. Parfums Givenchy benefited from its fragrances’ ongoing success. Benefit was boosted by its The Porefessional skincare line, while Fenty Beauty posted strong growth, driven especially by its innovations in mascara.
Bernard Arnault, Chairman and CEO of LVMH, commented: “Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges.” The Group once again recorded significant growth in revenue and profits.
LVMH invested 150 million euros in the 2024 Olympic and Paralympic Games in Paris, in order “to reinforce its global leadership position in luxury goods and promote France’s reputation for excellence around the world.”
In a year that bucked “a disrupted environment,” LVMH racked up strong organic revenue growth across all business groups except Wines & Spirits, worldwide market share gains, and double-digit organic revenue growth in Europe, Japan, and the rest of Asia.
As far as the company’s sustainability-focused 2023 targets met under their LIFE 360 environmental program, new circular services were launched at most Group Maisons; their research and innovation program focused on new materials and their environmental training center (LIFE Academy).
Targets were also met for 2026 and 2030—3.1 million hectares of flora and fauna habitat protected as of year-end 2023 (target: 5 million hectares by 2030); 63% improvement (up 16 points) in the proportion of renewable and low-carbon energy used in the Group’s energy mix; 28% decrease in energy-related CO2 emissions with respect to 2019. The Launch of LIFE 360 Business Partners, a “groundbreaking” plan to assist suppliers and partners to accelerate the reduction of Scope 3 impacts, in particular, related to raw materials and transport.
Bernard Arnault, Chairman and CEO of LVMH, commented: “Our performance in 2023 illustrates the exceptional appeal of our maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges.” In Beauty, Arnault cited “the ever-growing popularity of Sephora’s store concept worldwide.”
In March of 2024, Celine, one of LVMH’s maisons, announced the launch of its first-ever cosmetics collection—a range of satin-finish lipsticks. The brand had debuted a successful “haute parfumerie” collection in 2019. A “classic” satin lipstick in shade Rouge Triomphe will launch this autumn, followed by a 15-shade lipstick collection Le Rouge Celine in January 2025. Celine Beauté will launch new lines each season; each will include lip balms, mascaras, eyeliners, and pencils—as well as loose powders, blushes, and nail polishes.
Fashion also carries over to beauty at LVMH-owned Prada, which boosted its fragrance collection by launching a cosmetics and skincare collection last year.
Luxury fashion brand Rabanne also announced its first set of lip products, eye shadow palettes, and pigments.
Dolce & Gabbana brought its beauty business in-house to produce its own cosmetics, skincare, and fragrances.
In Q1 2024, citing an “uncertain geopolitical and economic environment,” LVMH said sales dropped even though Sephora reported “remarkable growth.” The French luxury retailer revealed a revenue decline of 2% from €21bn for the same period in 2023 to €20.7bn.
Momentum at Sephora was said to be “particularly strong” in North America, and continued its expansion in the Middle East and Europe. Sephora is set to expand its UK retail footprint this year, with three new stores opening in Q3. However, the beauty retailer exited Korea after five years. Jean-Jacques Guiony, LVMH’s CFO, said, they are closing Korea “because there is no winning strategy there.”
LVMH’s Perfumes & Cosmetics business achieved 7% organic growth in Q1, achieving €2.2bn for the quarter. Luxury beauty was driven by fragrance “champions” and a “selective distribution strategy.” Christian Dior delivered an “excellent” performance thanks to the success of its Sauvage, J’adore, and Miss Dior franchises. The relaunch of the Dior makeup range, Rouge Dior, and its Capture skincare line were also key drivers.
Other strong products included Parfums Givenchy, thanks to the expansion of its L’Interdit fragrance. Maison Francis Kurkdjian also maintained solid growth thanks to its hero fragrance Baccarat Rouge 540. Skincare and cosmetics from Guerlain also contributed to the division’s growth. The luxury beauty brand experienced “robust demand” for its Aqua Allegoria fragrances, Abeille Royale creams, and Terracotta powder makeup.
In June, Bernard Arnault promoted his son Frédéric to Managing Director of the family holding company Financière Agache. The 29-year-old will lead Financière Agache, which controls LVMH’s French beauty and fashion empire. All five of Arnault’s children currently hold executive positions within the LVMH roster.
LVMH reported that net profit fell 14% to 7.3 billion euros in the first six months of 2024, below analysts’ forecasts. Sephora, however, delivered double-digit growth in the first 6 months of the year. The French group posted total like-for-like sales of €41.6bn ($44.5 billion), down 1% compared to last year. The group said it was adversely impacted by the weakening of global currencies against the euro, especially the Chinese renminbi and the Japanese yen, as net profit fell 14% to €7.26bn (£6.10bn).
There will likely be a focus on Sephora for the remainder of this year.
Bernard Arnault said “Sephora will continue to reinforce its position in key markets such as Europe, the Middle East, and North America” in the second half of the year including investing in the UK market “where it will continue to reinforce its very fast-growing position.”
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#7 LVMH
France
www.lvmh.com
Corporate Sales:
$95 billionBeauty Sales:
$8.3 billionKey Personnel:
- Bernard Arnault, chairman and CEO
- Stéphanie Medioni, executive president of LVMH Beauty
- Stéphane Rinderknech, CEO and chair of LVMH’s beauty division
- Veronique Courtois, CEO Parfums Christian Dior
- Gabrielle Saint-Genis Rodriguez, President & CEO, Guerlain
- Nicolas Bazire, development and acquisitions
- Frédéric Arnault, Managing Director of Financière Agache
- Chris de Lapuente, CEO, selective retailing
- Jean-Jacques Guiony, CFO
- Guillaume Motte, CEO, Sephora
Major Products/Brands:
Perfumes and Cosmetics under brands including:- Parfums Christian Dior
- Guerlain
- Acqua Di Parma
- Givenchy Parfums
- Perfumes Loewe
- Kenzo Parfums
- Benefit Cosmetics
- Make Up For Ever
- Fresh
- KVD Beauty
- Maison Francis Kurkdjian
- Marc Jacobs Beauty
- Fenty Beauty by Rihanna
- Celine (new)
- Sephora
New Products:
- Celine Rouge Triomphe lipstick
- Guerlain Aqua Allegoria fragrances
- Guerlain Terracotta Le Teint makeup
- Francis Kurkdjian’s latest creation
- L’Or de J’adore
- Benefit’s The Porefessional
- Fenty Skin Hydrating Body Milk
Comments:
2023 was declared “a new record year” for LVMH, as total revenue grew 9% over 2022, reaching $95 billion. The luxe French family-owned conglomerate owns 75 brands across fashion, beauty, spirits and jewelry. The Perfumes and Cosmetics category grew to reach $8.3 billion. France’s largest private-sector recruiter employed more than 213,000 people worldwide as of year-end 2023 (including nearly 40,000 employees in France).The company reported strong movement in fragrances and makeup across all regions—as well as the ongoing global success of Dior’s Sauvage, which was once again the world’s best-selling fragrance in 2023. Sephora, too, boosted the bottom line, and according to LVMH, earned its position as “the world leader in beauty retail.”
The Perfumes & Cosmetics business group posted organic revenue growth of 11% in 2023 thanks to its “highly selective retail policy and dynamic innovation strategy, backed by the scientific excellence of LVMH’s research center.” Profit from recurring operations was up 8%. The Christian Dior brand led the way, extending its lead in key markets.
Fragrances were once again boosted by the success of the iconic Dior scents—Sauvage, Miss Dior, and J’adore—as well as Francis Kurkdjian’s latest creation, L’Or de J’adore. Makeup (with Dior Addict) and skincare (with Prestige and L’Or de Vie) also contributed to the Maison Dior’s growth. Guerlain continued to grow, driven by the popularity of its Aqua Allegoria line and its L’Art et la Matière high-end fragrance collection, as well as the popularity of its Terracotta Le Teint makeup. Parfums Givenchy benefited from its fragrances’ ongoing success. Benefit was boosted by its The Porefessional skincare line, while Fenty Beauty posted strong growth, driven especially by its innovations in mascara.
Bernard Arnault, Chairman and CEO of LVMH, commented: “Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges.” The Group once again recorded significant growth in revenue and profits.
LVMH invested 150 million euros in the 2024 Olympic and Paralympic Games in Paris, in order “to reinforce its global leadership position in luxury goods and promote France’s reputation for excellence around the world.”
In a year that bucked “a disrupted environment,” LVMH racked up strong organic revenue growth across all business groups except Wines & Spirits, worldwide market share gains, and double-digit organic revenue growth in Europe, Japan, and the rest of Asia.
As far as the company’s sustainability-focused 2023 targets met under their LIFE 360 environmental program, new circular services were launched at most Group Maisons; their research and innovation program focused on new materials and their environmental training center (LIFE Academy).
Targets were also met for 2026 and 2030—3.1 million hectares of flora and fauna habitat protected as of year-end 2023 (target: 5 million hectares by 2030); 63% improvement (up 16 points) in the proportion of renewable and low-carbon energy used in the Group’s energy mix; 28% decrease in energy-related CO2 emissions with respect to 2019. The Launch of LIFE 360 Business Partners, a “groundbreaking” plan to assist suppliers and partners to accelerate the reduction of Scope 3 impacts, in particular, related to raw materials and transport.
2023/2024 Highlights:
In November 2023, Dior debuted its first La Collection Privée fragrance boutique in the U.S., at JFK Airport Terminal 1, allowing travelers to shop “the brand’s most exquisite high perfumery collection.”Bernard Arnault, Chairman and CEO of LVMH, commented: “Our performance in 2023 illustrates the exceptional appeal of our maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges.” In Beauty, Arnault cited “the ever-growing popularity of Sephora’s store concept worldwide.”
In March of 2024, Celine, one of LVMH’s maisons, announced the launch of its first-ever cosmetics collection—a range of satin-finish lipsticks. The brand had debuted a successful “haute parfumerie” collection in 2019. A “classic” satin lipstick in shade Rouge Triomphe will launch this autumn, followed by a 15-shade lipstick collection Le Rouge Celine in January 2025. Celine Beauté will launch new lines each season; each will include lip balms, mascaras, eyeliners, and pencils—as well as loose powders, blushes, and nail polishes.
Fashion also carries over to beauty at LVMH-owned Prada, which boosted its fragrance collection by launching a cosmetics and skincare collection last year.
Luxury fashion brand Rabanne also announced its first set of lip products, eye shadow palettes, and pigments.
Dolce & Gabbana brought its beauty business in-house to produce its own cosmetics, skincare, and fragrances.
Looking Ahead:
At the start of 2024, Bernard Arnault stated: “While remaining vigilant in the current context, we enter 2024 with confidence, backed by our highly desirable brands and our agile teams. It promises to be an inspiring, exceptional year for us all, featuring our partnership with the Paris 2024 Olympic and Paralympic Games, whose core values of passion, inclusion, and surpassing oneself are shared by our Group. For LVMH, it provides a new opportunity to reinforce our global leadership position in luxury goods and promote France’s reputation for excellence around the world.”In Q1 2024, citing an “uncertain geopolitical and economic environment,” LVMH said sales dropped even though Sephora reported “remarkable growth.” The French luxury retailer revealed a revenue decline of 2% from €21bn for the same period in 2023 to €20.7bn.
Dior was a major contributor to LVMH sales in 2023. (Photo: Dior)
Momentum at Sephora was said to be “particularly strong” in North America, and continued its expansion in the Middle East and Europe. Sephora is set to expand its UK retail footprint this year, with three new stores opening in Q3. However, the beauty retailer exited Korea after five years. Jean-Jacques Guiony, LVMH’s CFO, said, they are closing Korea “because there is no winning strategy there.”
LVMH’s Perfumes & Cosmetics business achieved 7% organic growth in Q1, achieving €2.2bn for the quarter. Luxury beauty was driven by fragrance “champions” and a “selective distribution strategy.” Christian Dior delivered an “excellent” performance thanks to the success of its Sauvage, J’adore, and Miss Dior franchises. The relaunch of the Dior makeup range, Rouge Dior, and its Capture skincare line were also key drivers.
Other strong products included Parfums Givenchy, thanks to the expansion of its L’Interdit fragrance. Maison Francis Kurkdjian also maintained solid growth thanks to its hero fragrance Baccarat Rouge 540. Skincare and cosmetics from Guerlain also contributed to the division’s growth. The luxury beauty brand experienced “robust demand” for its Aqua Allegoria fragrances, Abeille Royale creams, and Terracotta powder makeup.
In June, Bernard Arnault promoted his son Frédéric to Managing Director of the family holding company Financière Agache. The 29-year-old will lead Financière Agache, which controls LVMH’s French beauty and fashion empire. All five of Arnault’s children currently hold executive positions within the LVMH roster.
LVMH reported that net profit fell 14% to 7.3 billion euros in the first six months of 2024, below analysts’ forecasts. Sephora, however, delivered double-digit growth in the first 6 months of the year. The French group posted total like-for-like sales of €41.6bn ($44.5 billion), down 1% compared to last year. The group said it was adversely impacted by the weakening of global currencies against the euro, especially the Chinese renminbi and the Japanese yen, as net profit fell 14% to €7.26bn (£6.10bn).
There will likely be a focus on Sephora for the remainder of this year.
Bernard Arnault said “Sephora will continue to reinforce its position in key markets such as Europe, the Middle East, and North America” in the second half of the year including investing in the UK market “where it will continue to reinforce its very fast-growing position.”
