11. LVMH
France
www.lvmh.com
Beauty Sales: $3.7 billion
Corporate Sales: $22.5 billion

Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazaire, Development
& Acquisitions.

Products/Brands: Fragrances and cosmetics sold under brands such as Christian Dior, Guerlain, Givenchy, Kenzo, Acqua di Parma, Parfums Loewe, Benefit, Fresh and Makeup Forever. LVMH also owns Sephora, the beauty products retailer.

New Products:  Dior—Fahrenheit 32 for men; Guerlain—L’Instant Magic; Parfums Givenchy—Very Irresistible Rosa Damascena 2007; Benefit—Love Your Look; Acqua di Parma—Colonia Intensa; Fendi Palazzo and Pucci Vivara
fragrances.

Comments: In 2007, LVMH Moët Hennessy Louis Vuitton’s perfumes and cosmetics business group recorded sales of $3.7 billion, with organic growth of 12%. Profit from recurring operations rose to $350 million for the unit. The company attributed the gains to innovation and expansion of flagship lines.
  

Givenchy's Very Irresistible.

The world’s leading luxury products group again reported an excellent first half of 2008, demonstrating its ability to grow market share and achieve profitable growth even under what it refers to as “unfavorable conditions.” The group recorded revenues of $12.3 billion in the first half of 2008, reflecting organic growth of 12%.  Excellent performances were achieved in Asia, the U.S. and Europe. Revenue was strongest by far in the Rest of Europe (excluding France) at 41%; the U.S. came in at 8%, just above Japan.
  
Fragrances continue to lead the division’s sales at 49%, followed by cosmetics (31%) and skin care (20%). In the first half of 2008, the perfumes and cosmetics business group recorded organic revenue growth of 13%. Revenue growth was 8% and profit from recurring operations rose by a whopping 22% over first half 2007, and nearly double that of 2006. Revenue reached $2.1 billion, up from $1.7 billion for the same period last year.
  
Parfums Christian Dior, driven by J’Adore-L’Absolu and Midnight Poison, strengthened its high-quality growth and achieved profitability in all product areas and across all regions of the world. The creation of Escale A Portofino, which kicks off a new collection of fragrances based on travel, also contributed to strong growth in women’s perfumes. Guerlain and Parfums Givenchy also performed well and profitably. Givenchy is reaping the benefits of Ange ou Démon and Very Irresistible.
  
In cosmetics, the launch of Dior Addict’s Shine proved to be a star, along with the brand’s Diorshow Blackout. Benefit expanded in all markets, including huge success in China, a market it first entered in 2007. Guerlain’s new mascara, Le 2, and its successful Terracotta line boosted the brand’s makeup sales.
  
Several men’s fragrances will debut in the second half of 2008. Jude Law is the face of the new Dior Homme Sport and Justin Timberlake has been chosen for the Play fragrance under the Givenchy brand. Skin care and makeup will also play a large role. Dior will launch a new mascara, Diorshow Iconic, and Guerlain will reveal a first-time loose powder version of Météorites.
  
Sephora acquired a 45% stake in the Russian perfumery and cosmetics chain Ile de Beauté, positioning itself to become a major player in this high-growth market during the next few years.
With an eye focused on North American sales, LVMH announced the appointment of Renaud Dutreil, a well-known figure in French politics and industry, as chairman of its North American arm, LVMH Inc.