Company Overview

LVMH is the world's largest luxury goods company, carrying pricey brands that cater to a high-end client. LVMH makes wines and spirits (Dom Pérignon, Moët & Chandon, Veuve Clicquot, and Hennessy), perfumes (Christian Dior, Guerlain, and Givenchy), cosmetics (Bliss, Fresh, and BeneFit), fashion and leather goods (Donna Karan, Givenchy, Kenzo, and Louis Vuitton), as well as watches and jewelry (TAG Heuer, Ebel, Chaumet, and Fred). LVMH's retail division includes Sephora cosmetics stores, Le Bon Marché Paris department stores, and 61 percent of DFS Group (duty-free shops).

The company has been focusing on controlling as much of its distribution as possible. LVMH has more than 1,850 retail outlets, including 360-plus Vuitton stores, more than 150 DFS Group duty-free shops, Le Bon Marché, and hundreds of designer boutiques. Its Sephora self-serve cosmetics and fragrance chain boasts more than 600 stores worldwide.

Another obstacle LVMH has encountered in recent years is counterfeiting. In June 2008, a ruling by a Paris commercial court upheld a claim LVMH made against online retailer eBay through its Louis Vuitton Malletier and Christian Dior Couture businesses. The court found eBay "guilty of misconduct and of detrimental breach," citing that eBay had not taken the necessary measures to prevent the sale of counterfeit goods on its site.

Overall, LVMH is focusing on growth, acquiring brands like watchmaker Hublot and whiskey maker Glenmorangie PLC.  However, they have also shed companies with less than stellar performance, including cosmetic brands Hard Candy and Urban Decay, and fashion brands Michael Kors and Christian Lacroix SNC.  Ultimately, LVMH feels its star brand, Louis Vuitton, has the most potential for growth and Sephora isn’t far behind, coining them a "little Vuitton."