As one of the most valuable luxury brands in the world, Louis Vuitton is highly sought after by investors around the world. However, Louis Vuitton is not a publicly traded company, so investors cannot buy Louis Vuitton stock directly. The parent company of Louis Vuitton, LVMH (LVMH Moët Hennessy Louis Vuitton SE), is publicly traded on the Euronext Paris exchange. Therefore, the only way for investors to gain exposure to Louis Vuitton is by investing in LVMH stock. In this article, we will explore the business model of LVMH and Louis Vuitton, the financial performance and growth prospects of LVMH, and how investors can buy LVMH stock.
LVMH business overview – A global leader in luxury goods
LVMH is the world’s largest luxury goods conglomerate, owning over 70 distinguished brands spanning wine and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry. Some of its flagship brands include Louis Vuitton, Dior, Givenchy, Moët & Chandon, Hennessy, Sephora and Tiffany & Co. LVMH has a global presence, with over 5,000 stores worldwide. Its business model is focused on maintaining the exclusivity and prestige of its luxury brands while driving growth through retail expansion, especially in emerging markets like China. LVMH also emphasizes innovation by refreshing its product offerings and entering new categories. For example, LVMH recently acquired the Belmond hotel group to increase its presence in experiential luxury travel. Overall, LVMH has proven itself highly skilled at managing a portfolio of luxury brands.
Robust financial performance and growth prospects
As the world leader in personal luxury goods, LVMH has delivered steady growth in both revenue and profits over the past decade. In 2021, LVMH generated €64.2 billion in revenue, up 44% over 2020. It also achieved record profits, with €17 billion in net profit in 2021. China has become LVMH’s largest market, accounting for over 35% of 2021 sales. LVMH is benefiting from strong demand growth in China as incomes rise. Across all key divisions – Fashion & Leather, Wines & Spirits, Perfumes & Cosmetics – LVMH holds either the #1 or #2 global market share position, demonstrating the strength of its brand portfolio. Analysts are bullish on LVMH’s growth outlook due to the resiliency of luxury demand, expansion plans in Asia, and LVMH’s ability to raise prices. LVMH’s fundamentals appear solid for long-term oriented investors.
How to invest in LVMH stock
LVMH trades on the Euronext Paris stock exchange under the ticker symbol MC. The company has a market capitalization of over €300 billion, making it one of the largest public companies in Europe. Investors can gain exposure to LVMH in several ways: directly purchase LVMH shares through a brokerage account, invest in a mutual fund or ETF that holds LVMH stock, or gain exposure through luxury sector funds. LVMH’s share price has risen over 200% in the past 5 years, as the company has continued to deliver double-digit revenue and profit growth. While not cheap, LVMH stock provides investors with a way to gain exposure to the structurally growing global luxury goods market, led by the iconic Louis Vuitton brand.
In summary, Louis Vuitton is owned by parent company LVMH, which is publicly traded on the Euronext Paris exchange. Investors looking for exposure to Louis Vuitton’s growth prospects can purchase LVMH shares directly or invest in funds holding LVMH stock. LVMH has an excellent track record in the luxury goods sector and is positioned to continue benefitting from robust demand, especially in China.