Lvmh report 1

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1. Introduction The report aims to evidence the financial trend of the company LVMH, considering the historical analysis of the past 5 years. The analytical study of the Income Statement and Balance Sheet over the years allows a valuation of the success of the company. The analysis of the financial statement proceeds with the computation of the financial ratios that clearly support a basically positive trend, even in a period of strong structural changes. The story of the group LVMH begins with the fusion in 1987 of the two important firms: Louis Vuitton and Möet Hennessy. The company includes the five major sectors of the luxury market: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing. The internationalization strategy allows the company to embrace in its business an excellent variety of brands, such as Louis Vuitton, Fendi, Céline, Marc Jacobs and in the sector of Wine & Spirits Belvedere, Möet & Chandon and others, with a notable willing to improve the expansion that today counts almost 60 prestigious brands.

enhancing the value of each single brand. Louis Vuitton & Möet Hennessy's governance is characterized by intelligent synergies while respecting individual identity and autonomy of the single Houses. Present in over 50 countries, LVMH has consistently acted as a pioneer in new and emerging markets, and is arguably the most international luxury conglomerate. The Group dominates the market, reaching a total of 3860 stores around the world in the last year, and it is geographically distributed, pursuing a strategy of diversification, to withstand the impact of shifting economic factors. It demonstrated to have the skills to manage successfully all market’s weaknesses faced. In fact, the average percentages of revenues in all countries remained quite constant overtime, with slight dips of only 1% or 2%. The French holding situates itself as a leading company in the world of luxury and fashion as it is highlighted in the last section of the report, in comparison with its main contenders.

The limitless innovation, connected to the preserved heritage of high quality, is the main characteristics of the Group's products and services. All business groups maintain a strong importance in the market and the excellence reached by digital improvements keeps up the dynamism and innovation of the market,

Europe (excluding France) United States 18% 24%

Japan 7% Other markets 11% Asia (excluding Japan) 29%

France 11%

United States

France

Asia (excluding Japan)

Other markets

Japan

Europe (excluding France)

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