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LVMH010_2008_GB:Mise en page 1 24/03/09 11:10 Page 6
he Group’s solid performance in 2008 demonstrated, more clearly than ever before,
the strength of its brands, the effectiveness of its strategy and the fantastic energy
resulting from the commitment of its teams. With the economic slowdown intensifying
during the last few months, the momentum behind our brands has often made
the difference. Our business is sustained by creative drive, the uncompromising quality
of our products, the desire to surprise and engage our clients and to offer them a unique
experience in our stores. All this derives from the talent and application of our employees.
The proactivity of everyone in our Houses and across our markets worldwide has enabled
us to respond rapidly to the unstable environment and to limit its consequences.
There have been a number of successes this year. I will start with
those that we owe to our leading brands. Louis Vuitton, which
enjoyed another record year, celebrated its timeless values
through the iconic personalities that featured in its corporate
campaign. Parfums Christian Dior, demonstrating its exceptio-
nal image and its roots in the world of couture, once again
outperformed its competitors. Hennessy secured its leading
position in China and Sephora gained further market share. From
our rising stars, we have continued to make excellent progress.
Some examples are Ruinart’s remarkable achievements, further
progress at Donna Karen which has built on the performance of
recent years, the strengthening position of Ardbeg whisky, and
the accelerated growth of Marc Jacobs, Benefit and Make Up
For Ever.
A strong culture of innovation across
all our business groups
In all our business groups, 2008 has been an extremely inno-
vative year. We have released new cuvees and designed high
value-added packaging for our cognacs, champagnes and whis-
kies. Louis Vuitton demonstrated its close involvement with
the art world through the launch of two Marc Jacobs collec-
tions conceived in collaboration with the artists Richard Prince
and Takashi Murakami. Another highlight was the launch of
Damier Graphite, a new signature range for our male clientele.
This line was remarkably successful in the second half of the
year and we have great ambitions for it and its numerous incar-
nations. We launched new perfumes: Dior Homme Sport, Escale
à Portofino by Christian Dior, Guerlain Homme, Play de Given-
chy and KenzoPower. Our watch and jewelry brands have exten-
ded their iconic ranges. In Geneva, TAG Heuer won its fifth
Grand Prix in six years for the Grand Carrera chronograph which
was featured at Baselworld 2008. Chaumet launched a new
collection of high-end jewelry and Sephora continued to affirm
its status as the most innovative brand in the global beauty
and perfume sector.
Financial strength, selective investments
2009 has started in a climate of considerable uncertainty for
all businesses. It would be unwise to predict the length of the
global economic crisis at this stage. However, whatever
happens, we have prepared ourselves for a difficult environ-
ment throughout the year. We have strengthened our rigo-
rous management by rapidly taking strict actions where neces-
sary. I am also aware that we must be even more selective in
the decisions that concern the allocation of our resources:
over the coming months, these decisions will be focused exclu-
sively on our key profitability drivers, the most important
projects, the most lucrative markets and only genuinely stra-
tegic opportunities.
Beyond short-term initiatives imposed by the current climate,
LVMH – and this, in my mind, is key – will continue to imple-
ment its organic growth strategy, which is founded on inno-
vation and geographic expansion. T
o achieve this, our Group
can count on a number of assets. In these turbulent economic
and financial markets, one of the Group’s most important attri-
butes is the strength of its balance sheet. Our debt levels are
modest. Having constantly focused on cash generation, we
have the ability to finance our own growth and therefore can
calmly anticipate with, and I repeat, great vigilance, the
moment of economic recovery.
PASSIONATE ABOUT CREATIVITY 03