Record results in 2023 for LVMH which will welcome two Arnault sons to its board – 01/25/2024 at 7:31 p.m.

The French CEO of world number one LVMH Bernard Arnault during the presentation of 2023 results on January 25 in Paris (AFP / STEPHANE DE SAKUTIN)

The world number one in luxury LVMH published new record results in 2023 on Thursday with 86.2 billion euros in sales and 15.2 billion in net profit, and announced the upcoming entry of two sons of Bernard Arnault to the board of directors. ‘administration.

The luxury giant, which owns the brands Louis Vuitton, Dior, Tiffany and Moët & Chandon, among others, speaks of “another record year”, with sales up 9% and net profit up 8%, “in an environment that is nevertheless disturbed.

Since the third quarter, the luxury market has slowed down in Europe and the United States and has not regained the expected growth in China.

Profitability is stable with a current operating margin of 26.5%.

“For 2024, we should continue the growth started in 2023,” assured the group’s CEO Bernard Arnault during the presentation of the results.

LVMH remains driven by its flagship fashion and leather goods division (Louis Vuitton, Dior, Celine, Fendi, etc.), whose sales increased by 9% to reach 42.2 billion euros.

Louis Vuitton had “an excellent year,” according to the press release. Nicolas Ghesquière, for the women’s collections, renewed his contract for five years and 2023 will also have been the year of Pharell Williams’ first show for men’s fashion.

“The Vuitton network is the only one in the world to never have sales, it’s unique,” ​​underlined Bernard Arnault.

Dior, run for a year by his eldest daughter Delphine Arnault, in haute couture, “cannot manufacture everything” in the face of demand, according to the CEO, assuring that “today, the most high-end products are those who have the most demands in the world.

Selective distribution jumped 20% to 17.9 billion euros in sales, notably thanks to “a remarkable performance” from the perfumery brand Sephora, “which managed to exceed all our forecasts”, said rejoiced Bernard Arnault.

– Four out of five children on the board –

Watches and jewelry grew by 3%, to approach 11 billion in turnover. Tiffany successfully reopened its flagship on 5th Avenue in New York in 2023, Bulgari is “in strong growth” and Tag Heuer “reaches a sales record”.

Perfumes and cosmetics achieved growth of 7% to 8.3 billion euros in sales, with a “remarkable performance” from Christian Dior.

On the sidelines of the announcement of the results, LVMH announced that two sons of Bernard Arnault, Alexandre, 31, and Frédéric, 29, would be proposed to the board of directors at the group’s next general meeting in April.

They will join the billionaire’s two eldest children, Antoine and Delphine, who joined at the same age as their brothers.

Jean, the last of five siblings, remains the only one not on the board of directors. “He has time, he is young,” replied Bernard Arnault when questioned by the press on the sidelines of the results. “In today’s France, it’s more like around thirty,” he added with a smile, referring to the age of new Prime Minister Gabriel Attal, 34 years old.

“When you join LVMH, you join a family,” asserted Bernard Arnault, 74, stressing that the arrival of his sons on the board of directors “rejuvenates the executives, even if I have no plans to leave In the short or medium term, I’m here for a while longer.”

The former CEO of the insurer Axa and current president of the Montaigne Institute, Henri de Castries, 69, should also join the board.

Nicolas Bazire, “loyal for 25 years” of Bernard Arnault, will not renew his mandate within this management body.

In mid-January, two other loyalists of the CEO announced a handover for February 1. Michael Burke, 66, advisor to Bernard Arnault since 2023 after having been CEO of Louis Vuitton for 10 years, has been appointed CEO of LVMH Fashion Group, a division bringing together several LVMH brands (Celine, Givenchy, Loewe, Kenzo… ).

He succeeds Sidney Toledano, 72, who, after 20 years at the head of Dior, held the position since 2018 and was appointed advisor to Bernard Arnault.

At the beginning of January, LVMH, which will also be a premium sponsor of the Olympic Games this year, announced the appointment of Frédéric Arnault as head of a new watch division of the group. At the end of November, his older brother Antoine Arnault declared that he was leaving the general management of Berluti, of which he remains president.

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