LVMH Doubles Profit in 2021, Remains The Leader of Luxury Goods
The French luxury conglomerate reaped a net profit of €17.15 billion in 2021, driven by top brands like Louis Vuitton, Dior and Tiffany & Co.
French luxury conglomerate LVMH Moët Hennessy Louis Vuitton has had an outstanding 2021 with growth exceeding expectations. The owner of Louis Vuitton, Dior, Bvlgari and TAG Heuer recorded revenue of €64.2 billion last year. This represents a 44 per cent increase when compared to 2020 and up 20 per cent when benchmarked against 2021.
The company’s profit doubled year-on-year to €17.15 billion, which is a staggering 107 per cent jump compared to 2020 and a 49 per cent increase when compared to 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.
Growth at the world’s largest luxury company continues to be driven by its iconic brands from the Fashion & Leather Goods business unit. It recorded organic revenue growth of 47 per cent in 2021 compared to 2020 and 42 per cent compared to 2019. Profit from recurring operations was up by 79 per cent compared to 2020 and 45 per cent compared to 2019.
Leading the charge are the brands Louis Vuitton and Dior, where the former celebrated the bicentenary of its founder’s birth. 2021 was also the year when the fashion world saw the premature departure of Virgil Abloh, Men’s Artistic Director of Louis Vuitton. The Maison paid tribute to the life and legacy of the celebrated designer with the Miami fashion show, “Virgil Was Here”.
At Dior, the momentum continues with the collections by designers Maria Grazia Chiuri and Kim Jones. These were presented in Athens and Paris and most had received tremendous reception. The other brands such as Celine, Loewe and Marc Jacobs, also performed outstandingly well
In the Watches & Jewellery division, the acquisition of Tiffany & Co. helped the business group to record a revenue growth of 167 per cent in 2021 compared to 2020. Last year was the first time Tiffany was consolidated within the division. The profit from recurring operations was about six times more than in 2020 and a 128 per cent increase when compared to 2019.
The company stated that Tiffany’s “record performance” was a result of its numerous impactful innovations and collaborations. The American jeweller enlisted the help of big names such as Jay-Z and Beyoncé for its “About Love” campaign and also worked with trending artists like Daniel Arsham for a limited-edition collection.
Other brands such as Bvlgari also had a great year with the launch of its High Jewellery collection Magnifica and new boutique openings. TAG Heuer had also done well with its partnership with Porsche and the release of its Super Mario smartwatch collection. For Chaumet and Zenith, both also had been highly successful with their own product releases.
“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.
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