Sales: $6.2 billion for cosmetics and fragrances. Corporate sales: $46.1 billion.
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazire, development and acquisitions; Chantal Gaemperie, human resources and synergies; Jean-Jacques Guiony, finance; Christopher de Lapuente, Sephora and beauty; Philippe Schaus, DFS; Jean-Baptiste Voison, strategy.
Major Products: Perfumes and cosmetics—Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Paris, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, Kat Von D Beauty, Marc Jacobs Beauty.
New Products: Fenty Beauty by Rihanna; J’adore Injoy and Sauvage Very Cool Spray; Dior Hydra Life skin care; Rouge Dior Liquid and Dior Addict Lip Tattoo; Micro-Huile de Rose; Make Up For Ever Water Blend foundation and Artist Face Color blush; Acqua di Parma Colonia Pura; Maison Francis Kurkdjian (acquisition).
Comments: The lust for luxury continues unabated throughout the world. How else can you explain LVMH’s gains year in and year out? The maker of wines, spirits, fashion, leather goods and, of course, cosmetics and fragrances, set another revenue record in 2017, and sales of fragrances and cosmetics increased more than 12%.
Makeup accounted for 47% of sales last year, followed by fragrance (36%) and skin care (17%). By region, Asia (excluding Japan) represented 30% of sales, followed by Europe (excluding France), 24%; US, 17%; other markets, 13%; France, 11% and Japan, 5%.
LVMH said Parfums Christian Dior grew market share in all regions, thanks to the success of Sauvage, as well as long-time best-selling scents, J’adore and Miss Dior. Color cosmetics provided a lift throughout the business; Rouge Dior Liquid and Dior Addict Lip Tattoo lipcolors proved popular as did Diorshow Pump’n’Volume mascara. In skin care, Dior launched Micro-Huile de Rose and Hydra Life formulas, while relaunching Dreamskin and One Essential.
Guerlain spent 2017 improving its position in China and introduced the Guerlain Parfumeur retail concept with five openings. Aiding Guerlain’s gains were strong sales of Orchidée Impériale and Abeille Royale skin care.
Parfums Givenchy had a very good year due to strong makeup sales, due, in part, to the debut of Perfecto and Rouge Interdit lipcolors. Kenzo Parfums rose on the continued international rollout of Kenzo World. Benefit’s sales rose on the strength of its Brow Collection. LVMH said Kat Von D and Marc Jacobs Beauty continued to expand at a fast pace.
Last year, American perfumer and entrepreneur Francis Kurkdijian joined the group, along with another American, recording artist Rihanna, who launched Fenty Beauty to much acclaim.
Q1 2018 corporate sales increased 10%. Sales of perfumes and cosmetics trailed those gains, with 8% growth. Parfums Christian Dior led the way, thanks to the vitality of J’adore, Miss Dior and Sauvage. Guerlain got a lift from the rollout of Mon Guerlain perfume and the continued strength of the Abeille Royale skin care range. Elsewhere, Parfums Givenchy, Benefit and Fresh saw sustained growth, as did Fenty Beauty by Rihanna.