LVMH financial analysis
SWOT Analysis LVMH
LVMH Moet Hennessy Louis Vuitton SA, (LVMH), is a France-based luxury goods company. It owns a portfolio of luxury brands and its business activities are divided into five segments: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewellery, and Selective Retailing. The activities of the wines and spirits sector include the Champagne and Wines branch, and the Cognac and Spirits branch. The Fashion and Leather Goods group includes Louis Vuitton, Kenzo and Rossimoda among others. LVMH is present in the perfume and cosmetics sector through the French Houses Christian Dior and other brands. Watches and Jewellery sells such products as TAG Heuer, Zenith, Dior Watches, Chaumet and Fred, among others. Selective Retailing businesses operate in two segments: travel retail and the selective retail concepts represented by Sephora and Le Bon Marche. In September 2013, the Company acquired majority stake in Nicholas Kirkwood, a British shoe designer company.
This French group is the biggest luxury company in terms of turnover. We can relate the sales of LVMH to this graph that shows the weight of each geographic zone in sales. This graph shows how the appreciation of the euro can be a problem to LVMH.
LVMH is present in every single sector of luxury, not like other competing big groups
This graph shows us the strength of the world’s luxury market that was worth 212 Billion euros in 2012.
4) Investment and financial management ratios : Financial structure ratios
CAPITAL STRUCTURE
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Fin. Debt/Equity
33.14%
27.73%
32.36%
30.62%
41.93%
42.79%
47.83%
49.56%
66.51%
84.27%
Net Debt / Equity
0,19
0,16
0,21
0,16
0,23
0,30
0,27
0,32
0,47
0,68
Goodwill & Intangibles / Total Assets
17.89%
15.63%
14.78%
13.53%
13.30%
13.99%
15.67%
15.76%
15.97%
15.72%
Net Debt / Total assets
8.91%
8.04%
9.92%
7.41%
9.72%
12.40%
10.10%
LVMH Moet Hennessy Louis Vuitton SA, (LVMH), is a France-based luxury goods company. It owns a portfolio of luxury brands and its business activities are divided into five segments: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewellery, and Selective Retailing. The activities of the wines and spirits sector include the Champagne and Wines branch, and the Cognac and Spirits branch. The Fashion and Leather Goods group includes Louis Vuitton, Kenzo and Rossimoda among others. LVMH is present in the perfume and cosmetics sector through the French Houses Christian Dior and other brands. Watches and Jewellery sells such products as TAG Heuer, Zenith, Dior Watches, Chaumet and Fred, among others. Selective Retailing businesses operate in two segments: travel retail and the selective retail concepts represented by Sephora and Le Bon Marche. In September 2013, the Company acquired majority stake in Nicholas Kirkwood, a British shoe designer company.
This French group is the biggest luxury company in terms of turnover. We can relate the sales of LVMH to this graph that shows the weight of each geographic zone in sales. This graph shows how the appreciation of the euro can be a problem to LVMH.
LVMH is present in every single sector of luxury, not like other competing big groups
This graph shows us the strength of the world’s luxury market that was worth 212 Billion euros in 2012.
4) Investment and financial management ratios : Financial structure ratios
CAPITAL STRUCTURE
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Fin. Debt/Equity
33.14%
27.73%
32.36%
30.62%
41.93%
42.79%
47.83%
49.56%
66.51%
84.27%
Net Debt / Equity
0,19
0,16
0,21
0,16
0,23
0,30
0,27
0,32
0,47
0,68
Goodwill & Intangibles / Total Assets
17.89%
15.63%
14.78%
13.53%
13.30%
13.99%
15.67%
15.76%
15.97%
15.72%
Net Debt / Total assets
8.91%
8.04%
9.92%
7.41%
9.72%
12.40%
10.10%