Corporate Media Analysis Report

The French multinational luxury goods conglomerate, Louis Vuitton Moet Hennessy (LVMH), owns several high-end fashion and beauty brands including Fenty Beauty and Savage X Fenty. Below is a review of LVMH’s most recent quarterly earnings report and an examination of their corporate communication materials surrounding the report. 

Quarterly Earnings Report Overview

According to LVMH’s most recent quarterly earnings report, the company’s recorded revenue for 2023 Q1 was €21 billion. The luxury goods conglomerate experienced a 17% organic growth compared to the same period last year. Within the Selective Retailing business group alone, LVMH saw 28% organic growth in the first quarter of 2023. The Fashion & Leather Goods business group recorded 18% organic growth, while the Jewelry & Watches and Perfume & Cosmetics business groups also experienced double-digit growth.

 Corporate Communication Materials

The corporate communication materials released surrounding LVMH’s 2023 Q1 earnings report highlighted the company’s growth and impressive financial performance. The conglomerate’s ability to adapt to difficult and changing market conditions brought on by geopolitical and economic uncertainty, was credited for much of the successful growth. The Asian market specifically had an impressive rebound due to the lifting of restrictive public health protocols and LVMH’s ability to quickly capitalize on the new conditions. Overall, LVMH recognized the quick work required to serve and inspire a constantly changing global market. 

Media Analysis

Following the release of LVMH’s quarterly earnings report, there was a mixture of positive, negative, and neutral coverage. The positive sentiments came from Bloomberg on two different accounts. The first article by Bloomberg draws a correlation between the loosening of restrictions in Asia and the booming effect it had on LVMH’s luxury sales. The other Bloomberg article recognizes and praises the holding company’s impressive, although brief, spot in the top ten most valuable companies in the world valued at nearly $500 billion. The negative articles that were released by Forbes surrounding LVMH around the time of the first quarter’s report were focused primarily on the protests in response to the French government’s decision to increase the retirement age. Though they don’t sound like correlating events, the LVMH global headquarters were stormed by protesters in Paris the day the financial report was released. The leader of the Union and of the protest is quoted telling reporters that, “If President Emanuel Macron needs more money to continue financing the strung-out pension system, he should come here to find it.”​​ Other media outlets, CNN in particular, continued the theme by highlighting the significant wealth disparity, using LVMH as the poster child of inordinate wealth. The story reported LVMH to be a symbol of exorbitant wealth which, instead of lining the pockets of C-suiters, should be better regulated to help the French working population. The neutral coverage was via Business of Fashion which offered a brief overview of LVMH’s successes and some of the reasoning behind the growth, like the invigoration of the Asian market. 

Quotes from Financial Analysts

There have been lots of comments made about the luxury conglomerate’s first quarterly report of 2023. There had previously been speculation about the success of 2023’s luxury market due to the decrease in Chinese purchasing as a result of national lockdown orders. All the concerns were put to rest, however, and China’s reemergence into the luxury buying market helped LVMH’s stock spike. UBS Group AG analyst, Zuzanna Pusz is quoted saying “We expect more polarization in the luxury space because Chinese consumers are picky and they want to buy brands that are strong.’’ Her comment suggests that because of the company’s strong growth and its recognition as one of the most valuable companies in the world, there is potential for LVMH brands to take some of its competitor’s market share, and additionally increase their margins by raising prices due to an uptick in demand. Another analyst, Aurelie Husson-Dumoutier from HSBC, suggests that the most recent boom from China is not a one-off, “Clearly China is booming and we don’t expect that to fade away any time soon”. The basic conclusion is that LVMH has entered a new phase of its business. The luxury conglomerate is booming in a way that suggests that this growth will be sustained and strategically played.

Reference materials: 

https://www.barrons.com/articles/lvmh-earnings-revenue-bernard-arnault-bec31964

https://www.bloomberg.com/news/articles/2023-04-15/china-luxury-boom-returns-but-lvmh-hermes-stand-out-from-crowd#xj4y7vzkg

https://www.bloomberg.com/news/articles/2023-04-13/lvmh-breaks-into-world-top-10-as-market-value-hits-486-billion

https://www.businessoffashion.com/news/luxury/lvmh-sales-lifted-by-strong-chinese-rebound-in-first-quarter/

https://www.cnn.com/2023/04/13/europe/france-protests-pensions-lvmh-intl/index.html

https://www.forbes.com/sites/tylerroush/2023/04/13/lvmh-headquarters-stormed-by-french-pension-protestors-as-companys-shares-hit-all-time-high/?sh=8274cf96dd63

https://www.lvmh.com/news-documents/press-releases/excellent-start-to-the-year-for-lvmh/

https://www.reuters.com/business/retail-consumer/lvmhs-caution-points-americans-waning-lust-luxury-2023-04-13/

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Corporate Media Analysis Report

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