French luxury conglomerate created by Bernard Arnault through four decades of dealmaking. The group is made up of 75 independent maisons, spanning fashion labels such as Louis Vuitton and Dior, drinks brands like Hennessy and Moët & Chandon, watchmakers, hotels, retailers and more. In 2024 the group generated €85bn ($100bn) in sales, making it roughly four times as large as Kering and Richemont, the industry's two other big conglomerates.
Arnault was perhaps the first to recognise that combining luxury brands under one roof could bring significant economies of scale by conferring negotiating power with advertisers, landlords and suppliers, and helping to entice and retain talent. Over the past decade he has devoured Tiffany & Co (high-end jewellery), Belmond (luxury hotels) and Rimowa (premium luggage).
According to Bain, a consultancy, leather goods accounted for 25-30% of the expansion in the global market for luxury items between 2019 and 2023, a period of roaring growth during which the industry's total sales rose from €284bn to €369bn ($434bn). But the handbag business has since taken a beating: Bain reckons that declining sales of leather goods accounted for three-fifths of the reduction in overall spending on luxury items since 2023, to an estimated €358bn in 2025. The typical price of a luxury handbag has risen from between eight and 12 times the production cost to roughly 15 times, according to Luca Solca of Bernstein, a broker. A series of Italian government investigations into sweatshop-like conditions in the supply chain for luxury fashion have not helped. LVMH now offers big-spending clients the chance to sleep in Christian Dior's original studio.
As economic uncertainty dampens spending on personal luxury goods, the well-off continue to splash out on luxury travel. LVMH has moved to capture that trend: it launched a Belmond sleeper train in Britain, and its 230-metre, 54-suite Orient Express yacht, built in partnership with Accor, is due to set sail from France in 2026. Labels including Bulgari and Armani have opened branded hotels; Dolce & Gabbana and Burberry have paired with hotel groups to open pop-up stores and beach clubs.
On April 13th 2026 LVMH reported that sales of its clothes and leather goods in the first three months of the year were down by 2% from the year before—the seventh consecutive quarter of decline. War in the Middle East and the resulting shock to the global economy have luxury brands braced for further gloom.
In 2001-02 LVMH began quietly buying Hermès stock, later using swap contracts with French banks to build a stake of over 20% without disclosure. France's financial regulator, the AMF, fined LVMH €8m. In 2014, after a truce, LVMH distributed all its Hermès shares to its own investors, booking €3.8bn in capital gains. Nicolas Puech, Hermès's largest individual shareholder, later alleged that his Swiss banker had secretly sold his shares to LVMH.
LVMH's market value reached its peak of around €450bn in 2023, briefly making Arnault the world's richest man. By mid-2025 it had fallen by more than a quarter, to less than €250bn, as shoppers in America and China—the two biggest markets for luxury wares—cut back spending. American tariffs on European goods compounded the downturn. In the first half of 2025 revenue fell by 4% year on year, with net profit plunging by 22%. Hermès overtook LVMH as the most valuable company in the luxury industry, and the Hermès clan dethroned the Arnault family atop France's rich list.
Louis Vuitton is LVMH's crown jewel. HSBC, a bank, has described the brand as "schizophrenic" for its attempt to peddle entry-level goods like chocolate and make-up alongside ultra-pricey handbags and luggage. The price of Louis Vuitton's Speedy 30 canvas tote bag has more than doubled since 2019, while the average price of personal luxury goods in Europe increased by just over 50% over the same period. In 2025 the brand opened a 17,000-square-foot ship-shaped flagship in Shanghai, serving as store, restaurant, museum and billboard.
The wines-and-spirits division contributes less than 10% of LVMH's operating profits, down by roughly half in a decade. Much of the business is in cognac. In 2013 the group set up Chandon China, a sparkling-wine producer in Ningxia, and Ao Yun, a winery in Yunnan, whose bottles fetch more than $350. As profits have shrunk, the division has announced thousands of job cuts. Moët Hennessy has faced accusations of sexual harassment, bullying and unfair dismissal by former employees, which it denies. Diageo already controls a third of Moët Hennessy and has expressed interest in taking the rest.
In July 2025 an Italian court placed Loro Piana, an LVMH label that sells cashmere sweaters for over $1,000, under judicial administration for using suppliers that allegedly violate labour rights. Dior faced similar investigations the previous year. LVMH acknowledged that "transparency, control, and management of this whole ecosystem can sometimes prove a bit difficult."
Arnault, aged 76, raised the age limit for his role from 75 to 80 three years ago, and again to 85 in 2025. All five of his children work in different corners of the empire. His daughter Delphine, put in charge of turning around Dior, is the only one of his offspring on LVMH's executive committee, making her the most likely candidate to succeed her father. In February 2025 his son Alexandre was made deputy head of Moët Hennessy; in March Frédéric was put in charge of Loro Piana.
Green's Law of Debate: Anything is possible if you don't know what you're talking about.