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

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

The luxury giant, which owns brands such as Louis Vuitton, Dior, Tiffany and Moët & Chandon, spoke of “another record year”, with sales up 9% and net profit up 8%, “albeit in a disruptive environment . . .

Since the third quarter, the luxury market has slowed 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 that started in 2023,” assured the group’s CEO Bernard Arnault during the presentation of the results.

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

According to the press release Louis Vuitton had a “great year”. Nicolas Ghesquière, for the women’s collection, renewed his contract for five years and 2023 will also be the year of Pharrell Williams’ first show for men’s fashion.

“The Vuitton network is the only one in the world that never goes on sale, it’s unique,” underlined Bernard Arnault.

Dior, run by his eldest daughter Delphine Arnault for a year in haute couture, “can’t produce everything” against demand, according to the CEO, asserting that “today, the most high-quality products are those that have the most is in demand in the world.

Selective distribution rose 20% in sales to 17.9 billion euros, thanks in particular to the “remarkable performance” of the perfume brand Sephora, “which exceeded all our forecasts”, enthused Bernard Arnault.

– Four out of five children on board –

Watches and jewelery grew by 3% to close to a turnover of 11 billion. Tiffany successfully reopens its flagship on 5th Avenue in New York in 2023, Bulgari is in “strong growth” and Tag Heuer “reaches sales records”.

Perfumes and cosmetics achieved sales growth of 7% to 8.3 billion euros with Christian Dior’s “remarkable performance”.

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

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

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

“When you join LVMH, you join a family,” said Bernard Arnault, 74, insisting that his sons’ arrival on the board of directors had reinvigorated the executives, even though he had no plans to leave in the short or medium term. I’m here for the time.”

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

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

In mid-January, two other CEO loyalists announced handovers for February 1. Bernard Arnault advisor Michael Burke, 66, has been appointed CEO of the LVMH Fashion Group from 2023, after being CEO of Louis Vuitton for 10 years, which brings together several LVMH brands (Celine, Givenchy, Loewe, Kenzo…). .

He succeeds Sidney Toledano, 72, who, after 20 years at the head of Dior, took up the post in 2018 and was appointed adviser to Bernard Arnault.

In early January, LVMH, which will also be a premium sponsor of the Olympic Games this year, announced the appointment of Frédéric Arnault as head of the group’s new watch division. In late November, his older brother Antoine Arnault announced that he was leaving general management of Berluti, of which he is president.