Arnault’s Louis Vuitton surpassed 20 billion euros in sales in 2022

«We never reveal the figures, but this is the exception that proves the rule,» Bernard Arnault proudly said introducing the 20 billion in sales surpassed by Louis Vuitton during the last fiscal year. «I thank Michael Burke for the outstanding work he has done for ten years and now welcome Pietro Beccari to the maison,» the owner of the 79.2 billion luxury giant in 2022 (+23%) continued. «We look forward now to Pharrell Williams’ first men’s collection in June and Nicolas Ghesquière’s big fashion show in Seoul in a few days for Louis Vuitton». The richest man in the world immediately introduced this exceptional figure at the Group’s general meeting, where he thanked Michael Burke, the maison’s incumbent ceo for the past ten years, for the outstanding job done and praised the new ceo, Pietro Beccari.

The Carrousel du Louvre is crowded almost like a fashion show would be, even though there has not been any for a least a decade. Security checks invitations for the general meeting scheduled for 10:30 A.M. About 500 people are seated in the large room carved out of the walls of the Louvre’s medieval fortress, excavated and salvaged during Mitterrand’s presidency. The most important people of the global luxury giant are lined up in full force: from Michael Burke to Pietro Beccari, Antonio Belloni to Sidney Toledano to heirs Delphine, Antoine and Jean Arnault. The other two children could not attend the meeting due to work commitments. Bernard Arnault entered the room at 10:29 A.M. from the floor, greeting the women and men of his team. A video started the proceedings.

«L’essentiel c’est autre chose que les chiffres,» Arnault started, «the essentials go beyond the numbers». Yet numbers matter, for a giant that has been able to drive the Paris Stock Exchange by growing 23% since the beginning of 2022 against a 5% average for the CAC 40 index (see opening). A dividend of 12 euros will be paid for each share. For the ceo of the 70-plus-maison group, whose net profit reached 14 billion, «the main driver of this performance is our collective ability to create desire, as well as technically resilient and innovative products». While revealing figures for another brand, he explained that «Celine is the fifth most loved brand in the world, and it has exceeded 2 billion in sales».

Then, talking about the relationship with employees and collaborators (which have been the same for decades, ed.) he noted, «we are a corporation, legally speaking, but every employee for us is part of a family. I think this is one of the keys to our success». Diego Della Valle, who after 20 years on the board of directors at Lvmh assumed the position of «censeur», is treated like a family member. About Sidney Toledano, the ceo said that he «is leaving the position as Head of the fashion division, but he is not leaving us, he is just changing role». There were rumors of Michael Burke taking his place but the meeting gave no confirmation.

Lvmh is France’s largest contributor, a significant fact given the social unrest across the country that arose to oppose the pension reform by president Emmanuel Macron. «We pay most of our taxes in France,» Bernard Arnault recalled. Of the 5 billion in corporate taxes paid worldwide, nearly half are paid in the country, which accounted for only 8% of total sales in 2022, according to a document distributed at the meeting. Of the company’s 196,000 employees worldwide, 15,000 were hired in France last year.

More broadly, the luxury sector is a major employer in France, with 1 million employees, according to Lvmh’s ceo. In response to a written question about the company’s added value, Deputy ceo Antonio Belloni explained its distribution. Out of a total of 38 billion euros in 2022, and in relation to 79.2 billion euros in sales, «9.6 billion euros are reinvested in the industry, businesses, and regions,» for example, the new leather goods workshop that Louis Vuitton opened in Vendôme.

In addition, «over 11.2 billion euros are returned directly to employees in the form of salaries, bonuses, profit sharing, and incentives. Finally, about a quarter of this 38 billion goes to taxes and the remaining 20% is distributed to shareholders in the form of dividends. Among the shareholders present at the Louvre, during the brief Q&A segment, two of them expressed a desire to proceed with a split of the shares, close to 900 euros and their record price to make them «a little more attractive and accessible». Before the vote on the resolution, Arnault said a split is not planned. «I will disappoint you, but desirability is proportional to value. The stock is a luxury product as well,» Arnault concluded with a laugh. (All rights reserved)