Despite the pandemic, the LVMH group, chaired by Bernard Arnault, is pursuing its strategy of expansion and diversification. More than ever, he has the means. In 2021, after a 44% jump in sales compared to 2020, to 64.2 billion euros, taking into account the integration of Tiffany & Co, the group generated 13 billion euros in cash. Or the equivalent of the amount of the acquisition of the New York jeweler, signed a year ago. “The 2020 crisis is just a bad memory”said the financial director of LVMH, Jean-Jacques Guiony, Thursday, January 27, during the presentation of the annual results.
The world number one in luxury items will have a string of inaugurations in 2022. In Paris, on March 3, Christian Dior will open the doors of 30, avenue Montaigne. The historic store of the haute couture house has been closed for almost three years for titanic renovation and extension works. This fashion heavyweight of LVMH – its clothing and leather goods brands generate 30.8 billion euros in sales – will operate a huge store, museum, restaurant and lounge there to receive its VIP customers.
By the end of 2022, Bernard Arnault will have inaugurated another extension carried out at great expense. That of the Tiffany & Co store in New York. The American jeweler is renovating its historic building in the Vand Avenue since the beginning of 2020. The brand founded in 1837 has already made it known how much it has rejuvenated. In the summer of 2021, in the streets of New York and Los Angeles, an advertising campaign assured young women that the brand no longer had anything to do with the one their mothers loved. “Not Your Mother’s Tiffany”asserted its slogan.
“The desire to have fun, after having saved”
Then the brand called on new ambassadors: singers Beyoncé and Jay Z embody the new campaign, “About Love”. But also Pharrell Williams: the American rapper attended the Kenzo and Chanel fashion shows, on January 23 and 25, in Paris, wearing a pair of gold Tiffany glasses surrounded by 61 diamonds.
The revival of the brand is scrutinized by all financial analysts. Because LVMH spent 13.3 billion euros to afford the jeweler. In addition, sales of rings, diamonds and other bracelets have escaped the slump of the crisis linked to the Covid-19 pandemic, according to Jie Zhang, financial analyst at the independent firm AlphaValue. Sales of Bulgari, Hublot and other LVMH watch and jewelry brands jumped 40% compared to 2020, thanks in particular to Asian and American customers. Richemont, his rival, also took advantage of this buoyant wind. The owner of Cartier and Van Cleef & Arpels saw its sales increase by 32% in the last quarter of 2021.
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