France is perhaps best known for its wine and cheese, but that could soon change.
Exports from LVMH, the French luxury conglomerate, outperformed those of wine and some cheese last year, Hypebeast reported on Monday. That’s according to a report by Astères for LVMH, released by the Financial Times. The consultancy found that LVMH accounted for 4 percent of France’s exports in 2023, while Camembert and wine collectively made up just 3.2 percent.
“Our performance in 2023 illustrates the exceptional appeal of our maisons and their ability to spark desire, despite a year affected by economic and geopolitical challenges,” Bernard Arnault, the chairman and CEO of LVMH, said in a statement earlier this year. “We achieved pretty sustained growth in Europe, Japan, and the rest of Asia last year, but a bit less strong in the U.S. due to the economic situation, which is in the process of inverting now.”
In total, LVMH exported €23.5 billion (about $25 billion) in luxury goods last year. Asia was responsible for about 40 percent of those sales, Hypebeast noted, while the United States imported 25 percent of that total. France made up less than 10 percent of LVMH’s sales, according to the report.
LVMH—which oversees major brands such as Louis Vuitton, Bulgari, Dior, and TAG Heuer—is one of the largest companies in the world. Last year, thanks in part to its stellar performance, it became the first European company to be valued at $500 billion. And Arnault, sitting at the top of the LVMH pyramid, is the wealthiest person on the planet: Currently, he’s worth a whopping $218 billion, according to the Bloomberg Billionaires Index.
As LVMH seeks to continue its stronghold on the luxury sector, Arnault has seemingly been planning out the company’s future, which is intertwined with that of his family. All of his children are involved in the business in some capacity, and four of the five are now on the board of directors: Just last week, Arnault appointed two more of his sons to the board. And while he hasn’t been completely forthcoming about his succession plans for LVMH, Arnault is ostensibly looking to keep it a family business.
For now, at least, if its 2023 results are anything to go by, LVMH is positioned to succeed.
Authors
-
Tori Latham