Page 2 - Letter to shareholders – March 2019 - LVMH

INSPIRING DREAMS

remarkable histories and identities that
provide endless sources of inspiration.
In 2018, for example, Louis Vuitton
continued to successfully revisit its
iconic handbags, while Christian Dior
reinterpreted the Toile de Jouy patterns
that have been a feature of the Maison
since its beginnings. Every season,
Guerlain, Loro Piana, Bvlgari and Fendi
develop original creations inspired by
their rich heritage. There is something
eternal about all our Maisons. They draw
on their impressive legacy to continue to
build their place in history. The terroirs
and wines of Dom Pérignon, Château
d’Yquem and Château Cheval Blanc are
made to stand the test of time. Belmond,
the prestige hotel group with which we
signed an acquisition agreement in 2018,
also boasts fantastic properties, names
and places that dreams are made of,
including Venice Simplon- Orient- Express,
Cipriani, and Copacabana. But the
To understand LVMH, you have to look beyond dreams that LVMH inspires do not only
pay tribute to the past. We also know
the figures. Our Group’s performance is above all how to invent the future, starting afresh
with entirely new projects like the hugely
the consequence of our long- term vision. successful cosmetics brand Fenty Beauty
by Rihanna, which burst onto the scene
just two years ago.

Entrepreneurial spirit
A shared passion to achieve and inspire The year’s many successes are testament
drives all our Maisons, and thrives within to the tremendous vitality of our Maisons: Another factor behind the power and
each of them. It is reflected in the myriad the remarkable performance of our performance of our Group is the talent
ways they blend tradition with modernity, champagne Maisons’ cuvées de prestige, and passion of our teams: around the
and excellence with responsibility. They exceptional grape harvests in terms of world, employees at our Maisons are
all have a single ambition: to evoke both quality and quantity, Hennessy’s all driven by the same commitment.
emotion and imagination with artisanal strong growth, Louis Vuitton’s continued Designers, artisans, executives, store
products that are ever more beautiful, series of triumphs, Christian Dior’s very managers, researchers… These are the
exquisitely crafted, and unique. strong first year as part of LVMH, creative Group’s lifeblood. Our decentralized
renewal at Celine and in Menswear organization means that we can attract
Another record year for LVMH for Louis Vuitton, Dior and Berluti, and retain the best talent, encouraging
the enthusiastic reception for Parfums our employees to give free rein to their
LVMH scaled new heights in 2018: our Christian Dior’s innovations, Bvlgari’s entrepreneurial spirit. In 2018 we also
revenue exceeded €46 billion, up 10%, new market share gains, Sephora’s stepped up our collaborations with
while profit from recurring operations enriched offering and innovative startups, which are sources of inspiration
crossed the €10 billion mark, up 21%. services, Rimowa’s bold collaborations for us. As well as taking part in Viva
This excellent performance, to which with designers… These are the successes Technology and organizing the LVMH
all our business lines contributed, was that reinforced our leadership position Innovation Award, we launched
buoyed by momentum in each of the in the global luxury market in 2018. La Maison des Startups LVMH at Station F,
regions where we operate. In particular, the world’s biggest startup incubator.
Asia and the United States saw strong Desirable brands, true to their heritage Working alongside startups helps keep
growth, because the creativity and quality us up to date with the latest innovations.
of our products, along with the unique This leadership position has been In- house development programs allow
in- store and online shopping experience achieved thanks to LVMH’s roots our most inventive employees to turn
we offer our customers, resonate and heritage. Our Group is essentially their new ideas into concrete projects.
especially well in those markets. a collection of family brands with It is in this richly diverse entrepreneurial

2 – LVMH – LETTER TO SHAREHOLDERS – MARCH 2019