Chit Chat Stocks LVMH Moët Hennessy Louis Vuitton (Ticker: LVMUY) Not So Deep Dive
Dec 12, 2023
Learn about the luxury brand LVMH and its business model. Explore the evolution of LVMH and the different segments of its business. Discover the positive experiences with Interactive Brokers and a locally owned business. Understand the corporate structure and succession planning of LVMH. Speculate on succession and corporate culture. Analyze the performance of Diageo. Explore future growth opportunities for LVMH.
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Fashion Segment's Margin Power
- LVMH's fashion and leather goods segment drives nearly half their revenue and the highest operating margins at 41%.
- Their supply chain balances handcrafted luxury features with limited mass production to maintain exclusivity and affordability.
Asia's Market Drives Growth
- Asia Pacific region is the largest market for LVMH, especially for fashion and leather goods, driving about 40-45% of sales in key segments.
- The luxury growth heavily depends on Asian consumers, both domestically and as tourists worldwide.
Strategic Succession Planning
- Bernard Arnault's succession plan involves his five children holding shares with restrictions to ensure long-term control and smooth transition.
- The plan fosters family cohesion and prepares Delphine, his daughter, to likely lead LVMH next, emphasizing stability.