Final Report LVMH
FINANCIAL ANALYSIS AND
MANAGEMENT OF
INTERNATIONAL GROUPS
Marian BODENSTEDT
Laurens VAN POUCKE
Xander SAVENBERG
Olumide KOMOLAFE
42801
42803
42805
42825
EDHEC BUSINESS SCHOOL
Financial Analysis and Management of International Groups
1|F i n a n c i a l A n a l y s i s a n d M a n a g e m e n t o f I n t e r n a t i o n a l G r o u p s
ABSTRACT
Throughout this report written for the coursework of ‘Financial Analysis and Management of International
Groups’ taught by Professor George Iatridis at EDHEC Business School, the LVMH Group will be thoroughly analysed and elaborately discussed. In order to be able to situate the analysis, we decided to compare LVMH with two of its industry competitors: Kering and Richmond.
LVMH is a French multinational luxury goods conglomerate based in Paris, listed on Euronext Paris, and a constituent member of the CAC40. The group is responsible for managing various high-end luxury brands situated in wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery and specialist retailing industries. A small collection of their most famous constituents can be found in the following: -
-
-
-
Wines and Spirits
Dom Perignon
Henessy
Moet & Chandon
Fashion and Leather Goods
Dior
Louis Vuitton
Perfumes and Cosmetics
Parfums Christian Dior
Parfums Givenchy
Watches and Jewellery
Bulgari
De Beers Diamond Jewellers
TAG Heuer
The position and strategy of LVMH as a luxury brand conglomerate, its risk profile and capital structure is discussed in the following. Furthermore, the market and financial position is analysed and the position relative to its competitors elaborated. One main focus of this report is further set on the friendly acquisition of the
Bulgari brand in March 2011.
CONTENTS
A.
Senior Management Summary ....................................................................................................................... 3
B.
Capital Structure and Financial Strategy
MANAGEMENT OF
INTERNATIONAL GROUPS
Marian BODENSTEDT
Laurens VAN POUCKE
Xander SAVENBERG
Olumide KOMOLAFE
42801
42803
42805
42825
EDHEC BUSINESS SCHOOL
Financial Analysis and Management of International Groups
1|F i n a n c i a l A n a l y s i s a n d M a n a g e m e n t o f I n t e r n a t i o n a l G r o u p s
ABSTRACT
Throughout this report written for the coursework of ‘Financial Analysis and Management of International
Groups’ taught by Professor George Iatridis at EDHEC Business School, the LVMH Group will be thoroughly analysed and elaborately discussed. In order to be able to situate the analysis, we decided to compare LVMH with two of its industry competitors: Kering and Richmond.
LVMH is a French multinational luxury goods conglomerate based in Paris, listed on Euronext Paris, and a constituent member of the CAC40. The group is responsible for managing various high-end luxury brands situated in wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery and specialist retailing industries. A small collection of their most famous constituents can be found in the following: -
-
-
-
Wines and Spirits
Dom Perignon
Henessy
Moet & Chandon
Fashion and Leather Goods
Dior
Louis Vuitton
Perfumes and Cosmetics
Parfums Christian Dior
Parfums Givenchy
Watches and Jewellery
Bulgari
De Beers Diamond Jewellers
TAG Heuer
The position and strategy of LVMH as a luxury brand conglomerate, its risk profile and capital structure is discussed in the following. Furthermore, the market and financial position is analysed and the position relative to its competitors elaborated. One main focus of this report is further set on the friendly acquisition of the
Bulgari brand in March 2011.
CONTENTS
A.
Senior Management Summary ....................................................................................................................... 3
B.
Capital Structure and Financial Strategy