2Jour Gazette | Special Edition (11): LVMH
- Maryna B
- Mar 17
- 25 min read
Innocent until proven guilty.
The last phrase Bernard Arnault uttered at LVMH’s 2024 full-year results presentation came in response to an irrelevant question about Jay-Z and his partnership with Tiffany & Co. The long-standing leader behind LVMH rarely grants the public his attention, and even less frequently answers its questions. One of his last in-depth interviews was with the Financial Times in 2019. Arranging that meeting took 18 months.
Having the opportunity to ask Bernard Arnault a direct question means gaining insight into core values, development vision, branding and communication strategies, and the group’s overall trajectory. After all, leadership defines the tone and philosophy of a business.
Which is why the final question of the presentation felt disappointing. As Stéphane Bianchi dryly noted—the only phrase he uttered that evening while seated next to Bernard Arnault and Jean-Jacques Guiony—the contract with Jay-Z had ended in 2022. The Q&A part of the presentation within the full 1-hour-and-6-minute event, filled with surface-level questions, felt like a missed opportunity.
Yet that closing remark—innocent until proven guilty—perfectly captures the tone LVMH aimed to project. Everything is fine. But is it?
Drawing on my experience working with brands, I know it’s about more than just the numbers—it’s about understanding the subtle signals. In this special edition, we dive deep into LVMH’s report to analyze what was actually said at the 2024 full-year results presentation, what was implied between the lines, and what was left unsaid—without false modesty, the most extensive and detailed breakdown you’ll find.
LVMH reality check
During that Financial Times interview—or rather, a casual yet insightful conversation—over lunch at Le Frank, the restaurant at Fondation Louis Vuitton (a safe place, isn’t it?), Bernard Arnault shared a thought:
What matters most is that in 10 years, our brands are as desirable as they are today. Profit is a consequence of what we do well; it should never become a goal.
Almost six years later, what was once framed as a consequence is now showing signs of strain. At the LVMH earnings presentation on January 28, 2025, Arnault didn’t report record-breaking numbers—but, as he put it:
Today I am not going to report a record revenue, but it was nonetheless a robust year.
LVMH’s total revenue fell from €86.2 billion in 2023 to €84.7 billion in 2024—a -2% overall decline. Still, the company managed to squeeze out a modest +1% organic growth.
Geographic performance: A mixed bag
LVMH’s revenue distribution across regions followed familiar patterns, with key markets experiencing varying degrees of turbulence:
U.S. (25% of total revenue): Moderate fluctuations between 0% and +3%, ultimately landing at +2% YoY;
Asia (excluding Japan, 28% of revenue): Continued slowdown, with performance hovering between -11% and -6%, closing the year at -11% YoY (I’ve previously broken down the factors behind this trend, as well as China’s policy responses, here);
Europe (25% of revenue): Steady but modest growth, fluctuating between +2% and +4%, ending at +3% YoY;
Japan (9% of revenue): The star of the show—double-digit growth versus 2023. However, a decline in the latter half of the year, partially due to a stronger yen, tempered overall gains.
*I previously explored the factors behind luxury’s strong performance in Japan here.
U.S. vs France
Right before LVMH’s earnings presentation, Bernard Arnault attended Donald Trump’s inauguration. The U.S. remains an attractive market, but that could soon change. The newly elected president has repeatedly threatened to increase import tariffs, which could impact European luxury brands.
Arnault shared his observations after his trip to the U.S., comparing it to the mood in France:
I've just returned from the US, and I was able to see a wind of optimism prevailing in that country. After spending a few days in the USA, you come to France, and it feels like a bit of a cold shower.
He continued:
You get the impression that in the USA, you are welcomed with open arms—taxes are going to drop to 15%, the workshops you can build there are subsidized in a series of states, and the American president encourages this practice. [...] And then you come to France and see that we are about to raise taxes by 40% on companies that manufacture here. It’s almost unbelievable. So now we are going to tax ‘Made in France’. That is a great way to drain enthusiasm—it’s hard to beat that. [...] What a great idea to encourage people to outsource. I don’t know if it’s the government’s ambition, but this is what they are going to achieve.
By saying this, he more than obviously voiced what many French corporations are concerned about. The French government has announced a corporate tax for businesses with revenue above €3 billion, raising the rate to 41.2% for the first fiscal year, before dropping to 20.6% in the second year. The hike is a deficit-reduction measure, primarily affecting France’s largest corporations.
LVMH is one of France’s largest corporate taxpayers—so no surprise the reaction was swift. The very next day, a government spokeswoman responded:
LVMH is the pride of France. However, we understand Bernard Arnault’s frustration regarding taxes. These increases are temporary, and our government remains pro-business.
Post-boom outlook
Undoubtedly, if we call things by their name, this is a steep drop compared to the previous year's results.
Post-COVID, we first saw a luxury bubble boom—+36% (I mean, wow);
Then came the natural stabilization: +17% YoY growth in 2022, followed by +13% in 2023—a more sustainable pace.
For a behemoth like LVMH, I’d personally consider 6-10% annual growth to be a healthy, conservative trajectory. Certain divisions (or, as per LVMH, business groups) might even hit 10-15%, which would be a huge success. Instead:
Quarterly performance was volatile: +2% in Q1, -5% in Q3, -1% in Q4 (all YoY);
Fashion & Leather Goods (LVMH’s core business) had a -1% decline in organic growth for full-year 2024.
LVMH calls this an 'improving trend', but II’d consider it more likely as a seasonal boost from Q4, the strongest retail period of the year. While holiday sales likely softened the decline, the overall trend still points to a slowdown.
Louis Vuitton
Talking about the biggest maison in LVMH's orbit—Louis Vuitton—Bernard Arnault brought up the Olympics, which turned out to be an expensive marketing move for the group.
Have you seen a boat on the Seine River with LV trunks?
His eyes lit up with genuine enthusiasm.
Louis Vuitton is not a fashion brand. I like to stress that. Louis Vuitton makes leather goods; they are specialists in travel, culture, and poetry maison. The fashion aspect is an accessory.
Hearing that made me, ah, sad. As a genuine fashion lover, I recently discovered that the brand has an amazing RTW line—with proper cuts and high-quality materials. Being rather conservative, I tend to avoid heavy logos and too complicated designs, and in my mind, LV was the opposite of that taste. Well, I was wrong. There are still plenty of one-season trendy pieces, but there are also enough timeless items.
That personal note aside, I find this approach somewhat... short-sighted? An overly concentrated focus on any one category—most often, handbags (arguably the highest-margin product)—can trap a brand in a dead end. It’s tempting to chase short-term profits, but long-term sustainability requires slow, strategic expansion.
Who are Louis Vuitton’s competitors?
Many compare Louis Vuitton to Hermès (though Hermès CEO Axel Dumas doesn’t like such comparisons—for obvious reasons, if you know what I mean). But I’d also bring up a less obvious contender: Goyard, a privately owned French maison with deep historical roots.
Hermès, which started as a horse tack brand, has evolved into a full-fledged luxury house, offering not just the most coveted handbags, but also clothing, footwear, accessories—including its signature silk scarves—and, more recently, cosmetics. How this contributes to growth will be analyzed in a special edition dedicated to Hermès' financial report (if it’s ever out). However, my point is that such a diversified product mix helps brands become more resilient to external factors. Yes, horse gear still holds an honorary place in its lineup, but it is no longer the most profitable segment.
Then there’s Goyard, which started as a niche brand specializing in trunks, suitcases, and travel accessories for the French nobility. Today, it remains highly desirable, but its growth opportunities are limited—not just because of its ownership structure, but also its positioning strategy. Goyard remains laser-focused on luggage, with some expansion into handbags, travel accessories and lifestyle items. But it doesn’t offer footwear or apparel, which limits its exposure. Goyard avoids loud marketing (as well as e-commerce)—much like Hermès. However, the latter still engages in meticulous promotional activities and has opened an e-shop.
A mix of both—Hermès and Goyard—generously seasoned with hype and big names somewhat resembles what Louis Vuitton represents today.
Meanwhile, Louis Vuitton’s latest much talked about move seems to have worked. The reissue of the Murakami collaboration in early January 2025—exactly 20 years after the original—was dismissed by some as a lazy attempt to generate quick results, but:
2025 is starting rather well. We have quite a few companies that have reported double-digit growth, including Louis Vuitton.
Bernard Arnault also touched on a relatively new expansion for Louis Vuitton—perfumes, which are available exclusively in LV boutiques and the online shop.
I won't give you any figures, but you'd be surprised.
Luxury perfumes—especially elevated, exclusive ones—have become the latest way for fashion brands to engage aspirational customers, a segment that has been overlooked in recent years. Apart from that, it sounds noble—the brand has its own signature scent.
*A major case study on how to sell such perfumes online, I shared here.
Christian Dior
Christian Dior, another LVMH icon, is currently undergoing shifts within its creative team. Maria Grazia Chiuri is reportedly leaving the brand, though this has not yet been officially confirmed.
The broader industry has seen significant designer reshuffling over the past year, and Dior is no exception. Earlier in 2025, it was announced that Kim Jones will step down as Artistic Director of Dior Homme—a role he has held since 2018.
Change, it seems, is much needed. Last summer, I met a friend. Dressed head to toe in Dior, she let out an involuntary scoff the moment our conversation briefly touched on fashion.
Oh, Maria Grazia...—she muttered in discontent.
This friend of mine is exactly the kind of client brands compete for—a high spender. Fashion, for her, is first and foremost about consumption. The fact that she even knew the designer’s name surprised me.
Whenever I step into a Dior boutique, I still find pieces worth attention—but mostly from the classic collections. In the beginning, Maria Grazia Chiuri successfully reinterpreted the house codes, but in recent seasons, the results have been underwhelming. The excessive use of logos feels like an awkward attempt to capitalize on Miu Miu’s success, while the latest rainbow-colored window displays look straight out of a previous seasons' Valentino campaign. The brand seems to have lost itself in the race to keep up with others. Unlike Louis Vuitton, there is no denying that Christian Dior is about fashion.
Dior had fantastic fashion shows in NY and Scotland. Usually in Scotland, it rains and that was a miracle—the weather was fantastic.
Bernard Arnault smiled as he spoke about the Maison, currently led by his daughter Delphine Arnault as CEO. He went on to state:
It is the #1 French haute couture brand. It belongs to a French group [...] And we look at our competitors. It is the maison that has reported the best figures in 2024. I'm not going to tell you the numbers, but, in a more challenging environment, this maison has performed the best among competitors.
That made me think. Who are Dior’s true competitors? In terms of style and product portfolio, the closest comparison is probably Chanel. But in terms of pricing, Chanel undeniably surpasses Dior.
The controversy
Speaking of pricing, Dior found itself at the center of controversy last year over alleged labor exploitation. The scandal was addressed publicly, but the response was delayed and quiet—so much so that many, including aspirational customers, now associate the Book Tote with a €57 bag sewn 24 hours a day in poor conditions by immigrants on the outskirts of Milan. According to a brand representative, the Book Tote has no connection to the outsourced production in question, but that is the price for questionable communication.
I previously analyzed this from a PR perspective, but beyond reputation damage, this controversy strikes at the very core of Dior’s value proposition—quality and craftsmanship, the very things that justify its luxury pricing.
Over the past year, discussions have intensified about whether brands have pushed their prices too far in the wake of post-COVID demand. Many in the industry now acknowledge that pricing strategy has alienated a significant customer base. According to Bain (though I take these reports with a grain of salt), the luxury consumer base has shrunk by approximately 50 million over the past two years.
Commenting on the pricing architecture, Bernard Arnault noted:
You have to be very careful. Customers are extremely aware of the value of the product beyond the price. Increasing prices is something that is properly understood by the clients. The problem is when the increase [of price] is made with no good reason.
Meanwhile, rumors are circulating that Jonathan Anderson is leaving Loewe to lead the creative direction at Dior. Over his 10 years at Loewe, he has undoubtedly breathed new life into the brand, transforming it not only into a trend-driven and more profitable label but also managing to keep it artistically intriguing.
Loro Piana
The only fashion brand whose performance was revealed—if we may say so—was Loro Piana. Last year, it celebrated its 100-year anniversary with a series of activations. The boldest—quite unexpected for a so-called quiet luxury brand—was a massive pop-up at Harrods.
Not just a pop-up, though. The project took over the entire façade of London’s most prestigious department store, with window displays, a dedicated workshop, and additional pop-up spaces. As I read in a post shared by a team member, the project took 18 months to execute.
As I literally wandered around Harrods, circling the display windows, one thought kept crossing my mind. To truly absorb all the details, one would have to be a hardcore Loro Piana fan. The same goes for anyone trying to fully understand the brand’s story—even though some of the text was embroidered on fabric with silk threads.
While I appreciate the power of the written word, I really felt the lack of printed materials that could help tell the story. Not referring to the brand’s £1,000 Assouline book here. This might seem minor, but in reality, it’s one of the most underestimated aspects of luxury. Brands pour insane amounts into marketing, yet as Jean-Jacques Guiony casually mentioned:
Half of it [marketing expenses] is pointless, but you don’t know which.
Too often, the focus is on scale rather than closing the loop—ensuring the message reaches its final recipient. That said, Loro Piana still delivered double-digit growth, according to Bernard Arnault.
A brand in transformation
Under Damien Bertrand’s leadership, the Italian heritage brand has gained new energy. Following the wild success of the Extra Pocket bag, Loro Piana has:
expanded its handbag category with new designs;
broadened its accessories lineup;
redefined its ready-to-wear collections, introducing even eveningwear.
Not everyone is thrilled with the changes, though. I’ve heard mixed reviews from long-time customers—some feel the evolution has shifted too far from what made Loro Piana unique. Still, it’s hard to deny that the brand has moved beyond its old perception as just a loafer brand.
Speaking of loafers—Summer Charms, my absolute favorite shoes of all time, remain a staple in my wardrobe, regardless of how many people wear them. Interestingly, the brand is now artificially limiting their availability.
The Competitor
Strolling through Harrods, I unexpectedly got into a half-hour conversation with a Loro Piana SA. As he shared behind-the-scenes stories—ones not usually disclosed (so I’ll keep them to myself)—I couldn’t help but notice his deep loyalty to the brand, perhaps even exaggerated. From love to hate, as they say... At one point, he said something that caught me off guard:
Soon, we will be better and bigger than Hermès.
Thinking about Loro Piana’s competitors, Brunello Cucinelli or maybe Zegna would have been my first picks. But Hermès?
And yet, the more I thought about it, the more it started making sense. Yes, Loro Piana’s marketing efforts have become more aggressive—with massive banners on city streets, something Hermès would never do.
Beyond that, there are real parallels:
the designs have evolved—fashion-forward, but without losing their DNA;
the pricing strategy is, let’s say, aligned;
both brands emphasize craftsmanship as their core value.
The controversy
But here’s where Loro Piana and Hermès truly diverge. Loro Piana’s values—or, as they call them on their website, excellences—came under fire in a Bloomberg report. It alleged that the brand pays mere pennies for vicuña wool sourced from Peru and that some local workers receive barely any compensation.
For context, vicuña wool comes from a rare camelid species native to Peru’s highlands. It’s one of the most luxurious (and expensive) materials in the world—garments made from it can sell for $7,000–$12,000.
I previously analyzed Loro Piana’s poor PR response to the controversy (here), as well as Damien Bertrand’s comments in his HTSI interview, Financial Times supplement (here). Setting aside my own negative perception of both the response and the situation itself, I’ll focus on one key takeaway:
This scandal highlighted the difference between Loro Piana and Hermès. It’s not just about branding—it’s about how each company approaches those involved in the production process. And that, in itself, is yet another reason why Hermès remains in a league of its own in the ultra-luxury space. Not mentioning, it also casts a shadow on the justification of the price. After all 'customers are extremely aware of the value of the product beyond the price'.
In the mentioned HTSI interview, Damien Bertrand stated that the scandal didn’t impact sales—which is no surprise, given the brand’s core clientele. What remains a missing puzzle is the perception of wider audiences, which was put under scrutiny. You never know who might become a client tomorrow.
Sliding from Fashion & Leather Goods to Perfumes & Cosmetics, a category that showed moderate but steady growth—a +4% organic increase in 2024 vs. 2023. The regions that contributed the most to this growth were Japan, the Middle East, and Europe. Bernard Arnault highlighted the ‘strong momentum in fragrances’, specifically Sauvage and Miss Dior by Christian Dior as ‘two word-leading fragrances’.
J’Adore was not mentioned. Back in September, a new campaign featuring Rihanna as the face of J’Adore marked a new chapter—following the long-term partnership with Charlize Theron. The advertising, which I expected to be as remarkable as both the fragrance and its ambassador, fell short of expectations. The reasons why—in the context of archetypes—I discussed here.
Cosmetics remain an accessible indulgence despite challenging times. Sephora, the beauty retailer in LVMH’s Selective Retailing division, ‘delivered great results’ with makeup maintaining its position as the leading product category by revenue.
—We are not going to give the figures directly,—Arnault smiled—but that was a remarkable year. €100 million in revenue per year in 1998 when it was bought, and now more than 10 times that... Let me count... Yes, a lot more.
According to LVMH’s presentation, Sephora achieved double-digit growth in both revenue and profit, recognized as the ‘first perfume and cosmetics retailer in the US for selective retailing’. Still, Arnault remained cryptic:
I can't give you all the figures,—he repeated—because you wouldn't believe them.
LVMH silence
Hearing this phrase multiple times during the presentation, I couldn’t help but think—LVMH has backed itself into a corner. The group is known for being reserved—just take a look at the press release section on its official website. But when it comes to financial transparency, it goes a step further—LVMH is also one of the most secretive luxury conglomerates in this regard. At the same time, it closely monitors and frequently mentions competitors’ performance—yet doesn’t offer much information in return. As they say in films: ‘Any information you disclose can be used against you’.
However, without clear figures, convincing investors of the company’s trajectory becomes more difficult. And that, in turn, affects stability. The day after the presentation, LVMH’s stock price noticeably dropped.
Watches & Jewelry saw a decline of 2-4% throughout the year; however, in the final third, sales turned positive compared to the previous year, showing a +3% increase. Despite this late improvement, the overall annual trend remained negative, with a 2% decline in 2024 vs. 2023. The most buoyant regions were Japan, France and the Middle East.
Tiffany S Co.: Sleeping beauty
Particular attention was drawn to Tiffany & Co., the American jewelry brand acquired by LVMH in early 2021 for nearly $16 billion. In 2024, the company faced a serious internal crisis linked to a mass employee exodus, which, according to press reports, raised concerns about corporate culture, leadership style, and the bonus system.
Following the acquisition, new management—led by CEO Anthony Ledru and U.S. division head Christopher Kilaniotis—introduced internal changes that allegedly caused dissatisfaction among employees. Among the most criticized initiatives:
the ‘Tiffany Joy’ app, intended to boost morale but perceived as forced;
alleged bonus reductions, further eroding trust among employees.
As a result of these factors, many employees reportedly left the company—taking not only themselves but also the clients they had worked with. This, in turn, had a negative impact on the company’s reputation.
Judging by Bernard Arnault’s reaction, the topic is a sore point, but one that is being closely monitored. Unlike LVMH’s usual approach—where figures are often kept vague—he shared multiple numbers when discussing Tiffany’s performance.
Tiffany was a sleeping beauty for 10 years before the acquisition. The stock market was booming, but Tiffany remained flat. It was excellent for acquisition, it was acquired for an excellent price.
—he said.
So we decided to wake her up. This wake-up call was not welcomed by everyone. When you used to sleep for ten years and then all of a sudden you've been asked to become fearless, and you're expected to achieve high objectives, some people can't accept it.
The defensive tone is unmistakable, as is the comparison to Meta’s approach—perhaps a way to normalize the restructuring.
I'd like to mention that Mr. Zuckerberg, who I talked to last week, said that 5% from Meta’s least performers will be made redundant. Or they will be promoted outwards, so to speak. We didn’t have another choice at Tiffany, so we let them go.
Arnault presents these layoffs as a necessary part of the transformation, though the dissatisfaction of former employees has shaped a different narrative in the press—one that he dismisses outright:
SAs weren’t happy about it, they misrepresented what happened. But if you look at the figures, they are very different from what was published in the press, and we are confident.
His confidence is backed by hard numbers, an unusual move for an LVMH earnings call:
Profit from last year was double from before the acquisition sales. Jewellery sales have been multiplied by 4. Landmark reported outstanding performance, and it is the #1 luxury store of LVMH group.
Despite the controversies, Arnault insists that the company is on the right track. However, he refrains from discussing the specifics of future plans:
Of course, we still have a lot to do. I'm not going to talk a lot about the strategy, but our strategy is to develop icons. We have four main ones—they are growing substantially and gradually. We still have a few stores that require investments, but every time we open a renovated store, the revenue goes up by 25%.
And finally:
I believe what you've read in the press doesn't necessarily reflect reality.
Yes, LVMH, as well as Bernard Arnault may keep silence during most storms. But that doesn't mean they don't follow closely.
Bvlgari: High jewelry triumph & e-Commerce expansion
Among the maisons in the division, Bvlgari received a brief mention for launching its new Aeterna high jewelry collection. The collection included 140-carat Aeterna necklace – the most expensive high jewelry piece sold in the past decade.
The Aeterna campaign followed me around for quite a while on the pages of the Financial Times—which is not surprising. I’ve previously written about why luxury brands favor this media outet here and how best to engage its audience here.
High jewelry, while primarily reserved for VICs (Very Important Clients), also plays a crucial role in aspirational marketing. Just as runway beauty looks help drive cosmetics sales, high jewelry campaigns create desire that trickles down to more accessible fine jewelry lines.
*A topic recently discussed by Tiffany & Co.’s CEO in an interview which I wrote about here.
In the context of Bvlgari, an interesting development is its recent entry into a multi-brand e-commerce platform—a first for a brand of its caliber in the jewelry sector. Its iconic Serpenti pieces, including those lavishly adorned with diamonds, the Diva’s Dream collection, and recently updated handbags (some of which disappointed me in terms of quality) are now available on Mytheresa. The German retailer appears to have outperformed its competitors in this space—including my personal favorite, Net-a-Porter; the "fashion Amazon," Farfetch; and the U.S.-market-oriented Moda Operandi.
Selling high-end jewelry online is a challenge in itself. To succeed, brands need to ensure:
a flawless presentation;
a secure and seamless customer experience;
a frictionless purchasing process.
No one has perfected this yet (I am pretty demanding though). Many online platforms feel outdated and clunky. I’ve read that some jewelry brands deliberately keep their websites old-fashioned to maintain an air of tradition that justifies premium pricing—a questionable strategy, if true.
Speaking of Bvlgari’s official website, despite visible efforts, the brand has yet to master online sales. This is where its presence on Mytheresa could work in its favor—who else, if not them, knows how to sell luxury online? Add to this their seamless order process, and this move could be beneficial.
That said, my first impression of Bvlgari’s Mytheresa page raised some questions, as it was placed directly below a bright pink banner promoting additional sale discounts—a placement that felt somewhat off-brand. While I’m not a strict follower of the 'diluting the brand identity' rule, in reasonable doses, this can be a strategic advantage. Perhaps these details should have been discussed more thoroughly before launching.
LVMH E-Commerce Strategy
This brings me to a topic of great professional interest—e-commerce. LVMH takes an exceptionally selective approach when placing its top brands on multi-brand online platforms. A few notes:
1. LVMH is protective of its top maisons when it comes to third-party online retailers, with only a few notable exceptions:
Celine on Mr Porter—its menswear collection is modeled on actual people, making it far more engaging than the static product shots on Celine’s official website. Could we, please, have the women’s line on Net-a-Porter?
A curated selection of Tiffany & Co. homeware on Moda Operandi—an understandable move, given that the retailer’s founder is also Tiffany’s Home category design director.
2. Among jewelry brands, Cartier is one of the few available outside official channels: it offers watches on Net-a-Porter and Mr Porter (both formerly owned by Richemont). Long story short—Net-a-Porter is now under Mytheresa’s ownership, with Richemont holding a minority stake in the latter.
* Richemont recently reported a slight increase of e-commerce as a revenue channel (detailed breakdown here).
3. LVMH’s own multi-brand e-commerce platform, 24S, was notably absent from both the presentation and the report. The reason seems obvious—it’s more of a burden than an asset. This isn’t LVMH’s first attempt at running an online retail platform, and, once again, it appears to be struggling.
I had high hopes for 24S. With LVMH’s resources and industry connections, it had immense potential. However, LVMH seems, at best, indifferent to this segment. The website itself feels like a relic from the early 2000s. Yes, it features Dior, Celine, and (let’s call them) 'archival' Louis Vuitton collections, but that does little to elevate its relevance.
In fall 2023, the VIC program was relaunched, but its engagement methods remain somewhat outdated. The portfolio, however, is impressive—Van Cleef & Arpels, Hermès Home, Chanel. A recent VIP newsletter even included Tiffany’s high jewelry collection—if you were wondering how $100k+ necklaces are being sold online.
*I’ve shared my comparative analysis of online luxury retail as a long-term client [part 1 here and part 2 here]—some of these platforms no longer exist.
4. E-commerce was conspicuously absent from LVMH’s latest presentation. No wonder, in one of a previous earnings calls, LVMH CFO Jean-Jacques Guiony stated that online retail was 'not a priority'. Yet, despite this, I’ve observed increased digital activity from LVMH brands. The results aren’t perfect, but the effort is visible.
For instance:
Dior launched a new website after nine months of development;
Louis Vuitton has been testing digital interactions, such as the Murakami collection presentation—which, personally, I found ‘selling’. Can't say the same about RTW section;
Loewe has refined its interface and product displays.
Tag Heuer, F1 and LVMH Sports bid
Speaking about watches, Bernard Arnault mentioned Tag Heuer. The brand’s marketing activity was recognized by LVMH as the most significant within the group last year. In a high-profile move, Tag Heuer replaced Rolex as the official Formula 1 timekeeper—a partnership that was highlighted right at the beginning of the presentation.
Tag Heuer has presented a new watch—Monaco, a square watch, which Ayrton Senna wore,
—he said, tracing a square in the air with his fingers.
At the beginning I found myself wondering why the presentation started with Formula 1 rather than the Olympics. And then it clicked—the Olympics are about the past, while Formula 1 is about the future, at least for the next decade.
Sports seem to be emerging as a key strategy for engagement with potential clients. Apart from its confirmed partnership with F1, reports have surfaced that Louis Vuitton might replace Zegna as the official fashion partner of Real Madrid.
Hospitality: A Long-term play
Another additional venture is hospitality. LVMH is increasingly expanding its presence in this sector, while emphasizing that it remains complementary. I definitely prefer not to mix fashion with hospitality, but rather to develop them as separate structures that can interact together, rather than blurring the lines between them.
We started from scratch 10 years ago. Cheval Blanc was launched in Courchevel. And nowadays, everyone tells me—and rankings confirm—that it is the most luxurious hotel chain in the world. Not bad for something started just 10 years ago.
— said Arnault. Rankings, it seems, matter a great deal to him. In his Financial Times interview, he admitted that he has 'always liked being number one'.
But luxury hospitality, he acknowledges, operates under different rules than fashion:
Hospitality is not as profitable as our core businesses—Dior, Louis Vuitton, Bvlgari—but it allows our clients to enjoy a room, an experience, take an Orient Express in a slightly privileged environment. It’s experience-based luxury, not just product-based.
With this, he explains the logic behind such an expansion.
Meaning we’ll invest as much as we can in our business [...] Admittedly, as we own quite a lot of facilities, that requires quite a lot of investment—long-term investment, most of the time—but it’s a good way of diversifying our business as it evolves.
Wines & Spirits: Being consumed responsibly
The biggest underperformer in LVMH’s latest results was the Wines & Spirits division. After starting to decline in 2023, the downward trend remained steady throughout 2024, closing the year at -8% YoY.
Jean-Jacques Guiony, a long-term member of the LVMH Executive Committee and the group's CFO, presented the figures and explained the decline as a 'slight drop in volume, prices, and mix'. The report on results meanwhile explains the results as 'reflecting the ongoing normalization of demand that began in 2023'.
However, industry analysis paints a broader picture—global wine demand has hit a five-year low, driven not just by economic downturns but also by shifting consumer preferences. The trend is moving toward a non-sober lifestyle and substitutes like ready-to-drink cocktails and beverages.
The New Leadership at Moët Hennessy
Turning the division around will now be Jean-Jacques Guiony’s responsibility. His 86th earnings presentation was his last as CFO of LVMH. In a major internal reshuffle, he was appointed President and CEO of Moët Hennessy, effective February 1, 2025. By the time this edition reaches the reader, he will have been leading the division for over three weeks.
Joining him is Alexandre Arnault, who was named Deputy CEO of Moët Hennessy in the same announcement. After spending the past few years in the U.S. as Executive Vice President of Product and Communications at Tiffany & Co., he will now relocate back to Paris.
In two years, we expect to see a recovery [for Wines & Spirits],
—said Bernard Arnault, casually praising Jean-Jacques Guiony, “who has worked with him for more than 20 years and is one of the top CFOs in France, according to rankings.”
How exactly Wines & Spirits will achieve its projected recovery remains to be seen. It may be expanding into new product categories to align with evolving consumer habits or a marketing push—something we witnessed at Tiffany & Co., starting with the highly engaging use of influencers to the controversial "Not Your Mother’s Tiffany" campaign.
Commenting on this campaign after it had been widely criticized, Alexandre Arnault, speaking at the Oxford Union two years ago, explained that it was aimed at a younger audience while not alienating loyal customers:
Mothers want to be cool like their daughters too.
***
Six years earlier, his father, Bernard Arnault, met with students in the same setting, offering a rare opportunity to see him in an unstaged environment. When answering questions, he often recalls personal experiences—just as he does when discussing specific cases and events during presentations. This reflects a leader who is deeply engaged in his own journey, using his lived experiences as a guide rather than relying on abstract theories or distant strategies.
While his attention to detail, sometimes down to the smallest aspects of business, is undeniable, it can occasionally be difficult to follow his thought process—he energetically jumps between topics, making it challenging at times to track a single thread.
This may create a certain cognitive dissonance, but to me, there is no contradiction in it. A sharp mind never stops, constantly adjusting, generating new strategies, and demonstrating flexibility. After all, a conservative and overly rigid approach rarely notices passing opportunities—let alone creates them. One such opportunity was the acquisition of Christian Dior at the very beginning of LVMH’s formation. Two other takeover attempts—Gucci and Hermès—were unsuccessful, and Bernard Arnault does not like to talk about them. Rather than addressing uncomfortable subjects, he prefers to focus on the future and highlight favorable rankings.
***
The latest speculation revolved around Wines & Spirits, with suggestions that LVMH might consider selling the division as it no longer fits within the portfolio and limits investment opportunities from Middle Eastern stakeholders.
This is not on the agenda,
—he briefly stated when asked about these rumors.
The Narrative
One of the key traits LVMH inherited from Bernard Arnault is an intolerance for negativity—he expects people to either speak well of him or not at all. Criticism, if addressed, is met with a firm and defensive response; more often than not, it is simply ignored.
Some time ago, he faced backlash over a media ban after an internal memo leaked, revealing that LVMH had prohibited any communication with certain media outlets. The list included publications that either operated independently and published unauthorized or unfavorable investigations or focused on internal power struggles within the group.
This strict stance extends to LVMH’s brands as well. Official websites usually lack a news section. CEOs remain silent regardless of external turbulence. When an official comment does come through, it tends to be rather aggressive. Needless to say, timing in communication is crucial—a response should be issued before public opinion solidifies. Ideally, it should be proactive, shaping the narrative rather than reacting to it.
The downside of this approach is that by refusing to engage, LVMH allows external parties to control the narrative instead of setting it themselves.
There is certainly a lot to discuss—beyond just strategic positioning. In addition to the scandals already mentioned, there was a recent report about Moët Hennessy products appearing on shelves in Russia despite sanctions
*I have written about the nature of Russian 'luxury' sanctions here
Another hit to the group came when it was revealed that the Olympic medals, designed in collaboration with Chaumet, had started peeling. In reality, Chaumet was only responsible for the design, while production was handled by an external manufacturer unaffiliated with LVMH. Still, some people only read the headlines, and it wasn’t LVMH who wrote the unfavorable one.
*Currently, Antoine Arnault oversees all communication and image-related matters for LVMH.
From the presentation, one thing is clear—if you want to understand priorities, just count how often something is mentioned. The press is closely monitored. Rankings are studied. Those deemed unfavorable may even end up on a watchlist—Bernard Arnault recently appeared in court regarding the surveillance of journalists and a blackmailer who had threatened to disclose personal information. Although he was involved as a witness, the case received minimal media coverage. A remarkable silence for such an event in today’s world.
What caught my attention the most was a phrase casually mentioned by Jean-Jacques Guiony:
The crisis [in luxury] is not structural but circumstantial.
Luxury is going through a challenging period. Beyond objective economic factors, I see the aggressive nature of luxury marketing as one of the issues—it chases the consumer, breaking the very essence of what luxury is meant to be: something aspirational, something you long to touch. Prices have skyrocketed to levels that seem excessive, while the market has become oversaturated with accessibility when, in reality, scarcity should define luxury. Quality, too, has become a growing concern, alongside the urgent need for structural changes in operational processes—starting with the fundamentals.
*I have previously shared my thoughts on this here
LVMH sees things differently. But regardless of the nature of the crisis, its timing is far from ideal. No crisis ever comes at a good time, of course, but now, Bernard Arnault's sharp mind is facing what might be his most complex challenge yet—succession.
The topic did not come up during the presentation. As has been repeatedly noted in the press, it remains off-limits, both within the company and externally. On March 5, Bernard Arnault will turn 76, meaning he can continue as CEO for another four years. The bylaw change raising the maximum age for the Chairman and CEO from 75 to 80 was introduced in April 2022. And while there seems to be no clear answer yet as to who will take over, preparations for this transition are quietly underway. The leadership shift at Moët Hennessy is part of a much broader restructuring within LVMH’s top ranks. Some of the longest-serving executives are being replaced, signaling a transition period for the company.
***
Whether the luxury crisis is truly circumstantial or structural, and how well LVMH navigates the challenges ahead, remains to be seen. One thing is certain—this transition will be closely watched. Innocent until proven guilty.
Luxury is evolving, and spotting growth opportunities requires a broad perspective. I’m open to dialogue with brands navigating these shifts—more details on my consultancy here.
