Corporate Sales:

$73 billion

Beauty Sales (Perfumes & Cosmetics):

$7.5 billion

Key Personnel:

• Bernard Arnault, chairman and CEO
• Antonio Belloni, group managing director
• Nicolas Bazire, development and acquisition
• Chris de Lapuente, chairman and CEO of the Selective Retailing Division of LVMH and also oversees the Group’s Perfumes & Cosmetics segment
• Jean-André Rougeot, president and CEO of Sephora Americas
• Marc Abergel, chief digital officer, Sephora

Major Brands/Products:

Perfume and cosmetic brands, including Guerlain, Acqua Di Parma, Parfums Christian Dior, Givenchy Parfums, Givenchy Gentlemen Perfume, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Marc Jacobs Beauty, Cha Ling, Fenty Beauty by Rihanna, Officine Universelle Buly, Stella McCartney skincare.

New Products:

La Collection Privée Christian Dior, Addict Natural Glow Makeup Set, Guerlain Aqua Allegoria, Guerlain L’Art et la Matiére; Benefit Boi-ing Bright On concealer, Benefit They’re Real mascara; Make Up For Ever HD Skin foundation, Givenchy Fraîche Irresistible, Fenty Beauty Glazy Face Radiant Duo, Fenty Beauty Eaze Into It Bundle, Fresh Tea Elixir Skin Resilience Activating Serum.

2021/2022 Highlights:

LVMH reported that 2021 was a record year, especially for its major brands, with the world’s leading luxury goods group achieving overall corporate sales of $73 billion, up a dramatic 44% compared to 2020 and up 20% compared to 2019.

Organic revenue growth was 36% compared to 2020 and 14% compared to 2019. The company said that this annual performance “confirms a return to strong growth momentum following the severe disruption to the first half of 2020 resulting from the global pandemic.” Much of the revenue was due to the company’s Fashion & Leather Goods segment.

The Perfumes & Cosmetics segment topped out at $7.5 billion, a 26% rise over 2020, with the luxury company reporting a “strong rebound in perfumes and rapid progress in skincare.”

By region, Asia (excluding Japan) accounted for 42% of sales. This more than doubled sales percentages in Europe (excluding France) at 19% and nearly tripled those in the U.S. at 16%. Other markets accounted for 10% of sales, followed by France, 9%, and Japan, 4%.

The business group recorded organic revenue growth of 27% in 2021 compared to 2020. Organic revenue was stable compared to 2019. Profit from recurring operations was nearly nine times higher than 2020 and returned to 2019 levels. “In an environment marked by a limited recovery in international travel and the closure of many points of sale over a period of several months,” LVMH reported that its major brands “chose to maintain a policy of selective distribution, limiting promotions and growing online sales on their own website.” Christian Dior was especially successful thanks to Miss Dior and Sauvage fragrances. In fact, LVMH says that in 2021, Sauvage, faced by Johnny Depp, became the highest selling fragrance in the world (women’s and men’s lines included) —“a worldwide first for a male fragrance.”

Also contributing to the segment’s growth: Dior’s Collection Privée and the skincare lines Prestige, Capture Totale and L’Or de Vie. Guerlain’s excellent performance was driven by its Abeille Royale and Orchidée Impériale skincare lines. Maison Francis Kurkdjian continued on a rapid growth path thanks to the ongoing success of Rouge 540, particularly in the U.S. Additionally, new acquisition Officine Universelle Buly added strength with its range of products.

Selective Retailing, which includes Sephora, added another $13 billion to the giant luxury conglomerate’s net total. Sephora surpassed its 2019 level of activity, benefiting from the strong rebound in its stores and the continued momentum of its online sales. The expansion of its store network continued, mainly in China and the United States, notably following on from its major partnership with the American retailer Kohl’s. Just recently, Sephora announced it will expand into all Kohl’s stores, reportedly aiming to add $2 billion in sales annually by 2025. In addition to signing a partnership with the European online platform Zalando, Sephora acquired the British online distributor Feelunique, which specializes in prestige beauty.

Upon the release of the annual report, Bernard Arnault, chairman and CEO of LVMH, said: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis. The Group’s record results could not have been achieved without the efficiency and exceptional ability of our teams to adapt and notably to remain connected to our customers, continuing to inspire dreams, despite the crisis…The Group and its Maisons carried out numerous actions in 2021 to promote biodiversity, protect nature and to preserve skills and craftsmanship, and will continue to do so in the years to come. Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market.”

In August, LVMH revealed a collaboration with Stella McCartney on a new D2C “clean beauty” skincare line, a new corporate maison, set to launch at press time. The minimalist, socially and environmentally conscious brand—from formulation to packaging to philanthropy—has been in development for several years. (LVMH is a minority partner in the Stella McCartney brand. The scent for the skincare products was created by Francis Kurkdjian, another LVMH maison.)

Looking Ahead:

In July 2022, according to a report in WWD, Jean-Jacques Guiony, chief financial officer at LVMH offered a “wait and see” approach on the second half of the year, “as the company evaluated issues of inflation, possible recession, supply chain disruptions, Chinese lockdowns and the war in Ukraine.” However, the company reported a 27% increase in revenues in the three months ended June 30.

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