Whichever sporting heroes bring home the medals at the Paris Olympics later this month, there will only be one true winner: LVMH founder, chairman and chief executive officer Bernard Arnault. Despite the political turmoil in France – and the impact this has had on Arnault’s wealth after the decline in LVMH shares – his brands will have a starring role in the games. LVMH Moet Hennessy Louis Vuitton has spent €150 million ($241 million) to be one of the premium sponsors of the Olympic and Paralympic Games.
It will also be the first-ever “creative partner,” with its brands including Louis Vuitton and Dior intertwined with the competition, its locations hosting cultural events and a roster of French athletes as ambassadors. The Paris 2024 and LVMH logos. Credit: Bloomberg It’s an unprecedented intermingling of designer labelling and sports, underlining the increasing might of the bling behemoth, which enjoys sales now four times bigger than its nearest rivals and a market capitalisation of about €350 billion.
Only Birkin bag maker Hermes International comes anywhere close to its value. But Arnault can’t afford anything other than a clean sweep of medals. After three years of blockbuster growth, luxury sales have decelerated.
The political upheaval in France can’t be ignored; some consumers are souring on top-end goods, while the dominance of the European luxury brands is being highlighted by Saks Fifth Avenue owner Hudson’s Bay Co’s $US2.65 billion acquisi.
