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1、Annual Report as of December 31,2022Combined Shareholders Meeting April 20,2023Chairmans message 2History 5Executive and Supervisory Bodies;Statutory Auditors as of December 31,2022 6Financial highlights 7Management Report of the Board of Directors:The Christian Dior group 91 Christian Diors busines
2、s model 92 Business overview,highlights and outlook 133 Business and financial review 354 Ethics and responsibility 495 Environment and sustainability 756 Attracting and retaining talent 1137 Outreach and giving back 1338 Financial and operational risk management and internal control 141Management R
3、eport of the Board of Directors:Christian Dior parent company 1611 Results of Christian Dior SE 1622 Share ownership of the Company 1643 Stock option and bonus share plans 1644 Summary of transactions in Christian Dior securities during the 2022 fiscal year by company officers and closely related pe
4、rsons(as defined in Article L 621182 of the French Monetary and Financial Code)1675 Share repurchase programs 168Board of Directors report on corporate governance 1711 Corporate governance 1722 Compensation of company officers 1953 Summary of transactions in Christian Dior securities during the 2022
5、 fiscal year by company officers and closely related persons(as defined in Article L 621182 of the French Monetary and Financial Code)209Consolidated financial statements 2111 Consolidated income statement 2122 Consolidated statement of comprehensive gains and losses 2133 Consolidated balance sheet
6、2144 Consolidated statement of changes in equity 2155 Consolidated cash flow statement 2166 Notes to the consolidated financial statements 2177 Consolidated companies 2778 Companies not included in the scope of consolidation 2869 Statutory Auditors report on the consolidated financial statements 287
7、Parent company financial statements:Christian Dior 2931 Income statement 2942 Balance sheet 2953 Cash flow statement 2964 Notes to the parent company financial statements 2975 Subsidiaries and equity investments 3046 Company results over the last five fiscal years 3057 Statutory Auditors report on t
8、he parent company financial statements 3068 Statutory Auditors special report on relatedparty agreements 310 General information regarding the parent company and its share capital;stock market information 3131 Information regarding the parent company 3142 Information regarding the capital 3173 Break
9、down of share capital and voting rights 3184 Market for financial instruments issued by Christian Dior 320Statement by the person responsible for the Annual Report 325As table totals are based on unrounded figures,there may be discrepancies between these totals and the sum of their rounded component
10、 figures.This document is a free translation into English of the original French“Rapport annuel”,hereafter referred to as the“Annual Report”.It is not a binding document.In the event of a conflict in interpretation,reference should be made to the French version,which is the authentic text.Annual Rep
11、ort as of December 31,20221Annual Report as of December 31,20222Annual Report as of December 31,2022 Chairmans messageForging further aheadIn 2022,another year marked by a mixed economic environment and a disrupted international context,the Group achieved a remarkable business performance,driven by
12、sustained creative momentum across all our professions and ongoing investment in passing on our expertise.Unparalleled performanceWe should be wary of treating numbers as symbolic milestones.Personally,I view them with satisfaction but not as our primary objectives:our staff,products,designers,craft
13、speople and stores have always meant more to me than numbers.That being said,when we reach or surpass certain milestones for the first time,there is no harm in taking a step back and recognizing what we have accomplished.In 2022,our Group generated nearly 80 billion euros in revenue,more than 20 bil
14、lion euros in operating profit and over 10 billion euros in cash flow.One of our most timehonored iconic Maisons,Louis Vuitton,has doubled its revenue in the space of five years to more than 20 billion euros.Examples abound of this steady,consistent growth in our businesses.Other indicators,such as
15、the 5 billion euros in corporate income tax we paid worldwide,half of it in France,also reflect the extent of our contribution to society.And one last example,which perhaps warrants an even more measured approach than the others,but I would be remiss not to mention,as it so clearly illustrates the s
16、hareholders confidence in our family group:LVMHs market capitalization topped the symbolic 400 billion euro threshold,which no other European company had ever come close to reaching before.Annual Report as of December 31,20223 Our professions captivate and attract talentThese numerical milestones re
17、flect an even more meaningful human reality.The Group as a whole now has nearly 200,000 employees who take on board,pass on and embody the culture of excellence that drives our Maisons,in France and all over the world.Every day,the Group which in 2022 became Frances numberone privatesector recruiter
18、 welcomes,trains and promotes people who identify with and find fulfillment in the exceptional products designed and sold by our Maisons,but above all in the human qualities needed to achieve all this:imagination and audacity,patience and attention to detail,openness to the cultures of the world and
19、 a passion for nature,which is ultimately the source of everything.Our professions captivate and attract talent.In 2022,200,000 visitors in 15 countries came to experience the 96 sites that our Maisons opened to the public for the fifth Journes Particulires event,where our craftspeople showcased the
20、ir skills,shared their passion and unveiled the infinite level of detail that they put into each product.We hired 39,000 young people worldwide who,thanks to the opportunities offered by our Maisons,will be able to train in their fields and hone their skills before going on to train others in turn.T
21、his point is worth emphasizing:our Maisons offer all new hires the chance to pursue a comprehensive career path with lifelong learning and development opportunities.These opportunities are now sufficiently wellknown that the Group receives a substantial influx of applications,not only directly to ou
22、r Maisons but also to our IME(Institut des Mtiers dExcellence)training programs in France,Italy,Switzerland,Japan and the United States,and to our LIVE(LInstitut des Vocations pour lEmploi)campuses in Clichy,near Paris,and in my hometown of Roubaix in northern France.Our more recently launched“You a
23、nd ME”recruitment events in a number of French cities have also attracted strong interest.We now have a total of 33 inhouse and external training centers and programs all over the world.This reflects the importance we place not only on preserving and passing on all our expertise but also on enhancin
24、g the appeal of these professions.I regularly talk to candidates who have applied to our programs,and for me,their enthusiasm and determination are compelling reasons to be optimistic about the future.By opening our doors to talented applicants and giving them the chance to see their merits rewarded
25、,we secure the Groups future and forward momentum.Keeping the creative flame burning brightAll our Maisons pushed their creative boundaries in 2022.Fashion shows by Christian Dior Coutures Maria Grazia Chiuri,in Seville,and Dior Hommes Kim Jones,against the backdrop of the pyramids of Giza,were accl
26、aimed all over the world as major events embodying a level of creative ambition rarely achieved.At Louis Vuitton,Nicolas Ghesquire continued to develop an aesthetic of clean lines and timeless looks,as seen in his Cruise show in California.Celine has also been significantly boosted by the fresh insp
27、iration brought to the Maison by Hedi Slimane over the past five years,while Jonathan Anderson has continued to reveal Loewes potential over the past ten years,designing collections hailed for their creative integrity and poetic vision.The Groups other businesses have enjoyed similar success:Sauvage
28、 is the worlds bestselling fragrance,and our Wines and Spirits Maisons continue to gain market share every year,building up positions in areas that hold particular promise for the future,such as champagne,ros wines and cognac.At the most recent Watch Week in Singapore,our watchmaking houses showcase
29、d their vibrant development in traditional highend watchmaking and smartwatches alike,met with steadily growing demand.All our efforts are focused on kindling and keeping the creative flame burning bright at the heart of our Maisons,with this uninterrupted creativity by far the most important factor
30、 enabling our Maisons to outpace their competitors year after year.If I may,I would like to single out two more examples of major creative success.After joining our Group in January 2021,Tiffany immediately set out to reinvent its collections and revitalize its brand image,creating new momentum that
31、 was instantly reflected in growth at the Maison,loved the world over.In the same vein,Louis Vuitton,which has crafted the trophy trunk for the World Cup since 2010,teamed up with Annie Leibovitz to produce a picture of two soccer legends that became the worlds most viewed ad in just a few days.Last
32、ly,the appointment of Pharrell Williams as Creative Director of Menswear at Louis Vuitton,announced in February 2023,was yet another event filled with promise for the future.These examples perfectly illustrate what I see as my primary focus:financial performance is simply the corollary of creative s
33、uccess.As you can see,this longheld conviction of mine was once again confirmed in 2022.4Annual Report as of December 31,2022The path of environmental excellenceOur passion for beautiful craftsmanship and for natural beauty are two branches of the same tree.Our Maisons have always been very mindful
34、of their environment which,for almost all of them,is the bedrock on which they have flourished.They have a longstanding,symbiotic relationship with nature.This can be seen in our many vineyards around the world,of course,but also at the production sites of our Maisons that craft fragrances,leather g
35、oods and,in many cases,even jewelry and watchmaking.Surrounded by unspoiled countryside,they inhabit in the fullest sense of the word these natural spaces,protecting and taking care of them.As the years go by,this rural element of the Group has become a growing source of inspiration for its urban el
36、ement:our stores.The efficient use of resources that has long been standard practice at our production sites has been extended to all our businesses in record time.Thanks to an unprecedented effort,the Group plans to cut its energy use by 10%between October 2022 and October 2023 and to continue alon
37、g this trajectory.This range of initiatives,spearheaded by the LIFE 360 environmental program,was also recognized by the Carbon Disclosure Project,which awarded LVMH an AAA rating in 2022 a score only achieved by 12 companies out of the 15,000 assessed around the world.In 2023,the Group will continu
38、e to forge ahead on this path of environmental excellence.Uncertainty and hopeNow that we have left 2022 behind us,I hope we have seen the last of the challenges caused by the pandemic,which for two years profoundly changed the world.Yet we have entered into a period of new geopolitical uncertainty.
39、Our diverse range of locations and business lines,together with the appeal of our products across all geographic areas,gives us some protection if business should slow down in any particular region of the world.We have learned to manage the impact and work around the consequences of extreme scenario
40、s that would have been virtually inconceivable three years ago,in particular thanks to the major breakthrough made by digitalizing our logistics operations and our online stores.This was reflected in our fourthquarter 2022 results:despite the neartotal shutdown of China,a major market for our produc
41、ts,the Group as a whole delivered solid growth.That is why our Group is facing 2023 with confidence.Confidence,because the world,where change comes faster than ever,requires us to keep moving while staying inventive,alert,innovative and pioneering.Confidence,because we will continue to pursue our pa
42、ssion for what makes life beautiful.Creativity and passion are boundless resources,as infinite as the potential preserved in our Maisons rich heritage,legendary terroirs and singular craftsmanship.Thanks to our deeply engaged staff and our unique expertise,the Group will forge further ahead.Much fur
43、ther.Bernard ArnaultChairman of the Board of DirectorsAnnual Report as of December 31,20225 HistoryThe history of Christian Dior began in 1946,when Monsieur Christian Dior started his own haute couture establishment in a townhouse at 30 Avenue Montaigne in Paris,where the Company still has its headq
44、uarters.In 1984,the Boussac group which owned Christian Dior at the time was acquired by Bernard Arnault in association with a group of investors.In 1988,through one of its subsidiaries,Christian Dior took a 32%stake in LVMH,an ownership interest that would be gradually increased over the years.As o
45、f December 31,2022,Christian Dior thus held 41%of the share capital and 57%of the voting rights of LVMH,while the Arnault family group also held about 7%of the share capital and 8%of the voting rights of LVMH as of this same date.The Christian Dior group was formed through successive alliances among
46、 companies that,from generation to generation,have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest.These companies now form a powerful,global Group in which the historic companies share their expertise with the newer brands,and c
47、ontinue to cultivate the art of growing while transcending time,without losing their soul or their image of distinction.From the 14th century to the present14th century1365Le Clos des Lambrays16th century1593Chteau dYquem18th century1729Ruinart 1743Mot&Chandon 1765Hennessy 1772Veuve Clicquot 1780Cha
48、umet19th century1803Officine Universelle Buly 1815Ardbeg 1817Cova 1828Guerlain 1832Chteau Cheval Blanc 1837Tiffany&Co 1843Krug Glenmorangie 1846Loewe 1849Royal Van Lent 1852Le Bon March 1854Louis Vuitton 1858Mercier 1860TAG Heuer Jardin dAcclimatation 1865Zenith 1870La Samaritaine 1884Bulgari 1895Be
49、rluti 1898Rimowa20th century1908Les Echos 1914Patou 1916Acqua di Parma 1923La Grande picerie de Paris 1924Loro Piana 1925Fendi 1936Dom Prignon Fred 1944Le ParisienAujourdhui en France 1945Celine 1946Christian Dior Couture 1947Parfums Christian Dior Emilio Pucci 1952Givenchy Connaissance des Arts 195
50、5Chteau Galoupet 1957Parfums Givenchy Repossi 1958Starboard Cruise Services 1959Chandon 1960DFS 1969Sephora 1970Kenzo 1972Perfumes Loewe 1973Joseph Phelps 1974InvestirLe Journal des Finances 1975Ole Henriksen 1976Benefit Cosmetics Belmond 1977Newton Vineyard 1980Hublot 1983Radio Classique 1984Marc J
51、acobs Make Up For Ever 1985Cloudy Bay 1988Kenzo Parfums 1991Fresh 1992Colgin Cellars 1993Belvedere 1996Terrazas de los Andes 1998Bodega Numanthia 1999Cheval des Andes21st century2006Armand de Brignac Chteau dEsclans Maisons Cheval Blanc 2008KVD Vegan Beauty 2009Maison Francis Kurkdjian 2010Woodinvil
52、le 2013Ao Yun 2017Fenty Beauty by Rihanna Volcn de mi Tierra 2020Eminente 2022Stella by Stella McCartney6Annual Report as of December 31,2022 Executive and Supervisory Bodies;Statutory Auditors as of December 31,2022(1)Renewal proposed at the Shareholders Meeting of April 20,2023(2)Ratification of t
53、he cooptation proposed at the Shareholders Meeting of April 20,2023(3)Independent DirectorBoard of DirectorsBernard ARNAULT(1)Chairman of the Board of DirectorsAntoine ARNAULT(1)(2)Vice-Chairman and Chief Executive OfficerDelphine ARNAULTNicolas BAZIREHlne DESMARAIS(3)Renaud DONNEDIEU de VABRES(3)Sg
54、olne GALLIENNE(3)Christian de LABRIFFE(3)Maria Luisa LORO PIANA(1)Advisory Board memberJaime de MARICHALAR y SENZ de TEJADAPerformance Audit CommitteeChristian de LABRIFFE(3)ChairmanNicolas BAZIRERenaud DONNEDIEU de VABRES(3)Governance&Compensation CommitteeHlne DESMARAIS(3)ChairmanNicolas BAZIREChr
55、istian de LABRIFFE(3)Statutory AuditorsDELOITTE&Associs represented by Guillaume TroussicotMAZARS represented by Isabelle Sapet and Guillaume Machin Annual Report as of December 31,20227 Financial highlightsKey consolidated data(EUR millions and as%)202220212020Revenue79,184 64,21544,651Gross margin
56、54,196 43,86028,780Gross margin as a percentage of revenue68%68%65%Profit from recurring operations21,050 17,1398,300Current operating margin as a percentage of revenue26.6%26.7%18.6%Net profit,before minority interests14,702 12,6644,970Net profit,minority interests share8,905 7,7183,037Net profit,G
57、roup share5,797 4,9461,933Cash from operations before changes in working capital26,765 22,61113,990Operating investments4,969 2,6642,478Operating free cash flow(a)10,110 13,5186,093Equity,Group share19,038 15,37211,270Minority interests35,276 30,99524,974Total equity54,314 46,36736,244Net financial
58、debt(b)8,867 9,5214,213Net financial debt/Total equity ratio163%205%116%(a)See the consolidated cash flow statement in the consolidated financial statements for the definition of“Operating free cash flow”(b)Excluding“Lease liabilities”and“Purchase commitments for minority interests”included in“Other
59、 noncurrent liabilities”Data per share(EUR)202220212020Earnings per share Basic Group share of earnings per share3213 27411072Diluted Group share of earnings per share3211 27401070Dividend per share Interim500 300200Final700 700400Gross amount paid for fiscal year(a)1200(b)1000600(a)Gross amount exc
60、luding the impact of tax regulations applicable to recipients(b)For fiscal year 2022,amount proposed at the Shareholders Meeting of April 20,20238Annual Report as of December 31,2022 Information by business groupChange in revenue by business group (EUR millions and as%)20222021Change2020PublishedOrg
61、anic(a)Wines and Spirits7,099 5,974+19%+11%4,755Fashion and Leather Goods38,648 30,896+25%+20%21,207Perfumes and Cosmetics7,722 6,608+17%+10%5,248Watches and Jewelry10,581 8,964+18%+12%3,356Selective Retailing14,582 11,754+26%+17%10,155Other activities and eliminations281 19(70)Total79,184 64,215+23
62、%+17%44,651(a)On a constant consolidation scope and currency basis For 2022,the net exchange rate impact was+6%,and the net impact of changes in the scope of consolidation was nil The principles used to determine the net impact of exchange rate fluctuations on the revenue of entities reporting in fo
63、reign currencies and the net impact of changes in the scope of consolidation are described on page 39Profit from recurring operations by business group(EUR millions)202220212020Wines and Spirits2,155 1,8631,388Fashion and Leather Goods15,709 12,8427,188Perfumes and Cosmetics660 68480Watches and Jewe
64、lry2,017 1,679302Selective Retailing788 534(203)Other activities and eliminations(279)(463)(455)Total21,050 17,1398,300Information by geographic regionRevenue by geographic region of delivery(as%)202220212020France8 68Europe(excl France)16 1516United States27 2624Japan7 77Asia(excl Japan)30 3534Othe
65、r markets12 1111Total100 100100Revenue by invoicing currency(as%)202220212020Euro19 1719US dollar30 2827Japanese yen7 77Hong Kong dollar2 34Other currencies42 4543Total100 100100Number of storesDec 31,2022Dec 31,2021Dec 31,2020France518 522512Europe(excl France)1,108 1,2031,175United States1,054 1,0
66、14866Japan496 477428Asia(excl Japan)1,829 1,7461,514Other markets659 594508Total5,664 5,5565,003Annual Report as of December 31,20229Management Report of the Board of Directors:The Christian Dior group1 Christian Diors business model1 Business group overview 102 Group values 113 Operating model 1110
67、Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior groupChristian Diors business modelThe Group helps its Maisons grow over the long term,based on respect for their specific strengths and individuality,underpinned by common values and a shared business
68、 model.In addition to being a responsible corporate citizen which conducts its business in the most exemplary way,the Group decided,in conjunction with its Maisons,to implement a number of initiatives not directly related to their business activities in support of society,the environment and culture
69、.These longstanding commitments contribute to a longterm vision and provide a powerful response to the role a group like Christian Dior should play within society.1 Business group overviewChristian Dior is the only group that operates simultaneously,through its Maisons,in all the following major lux
70、ury sectors:Wines and Spirits:Based in Champagne,Bordeaux and other renowned winegrowing regions,the Groups Maisons some of which are hundreds of years old all have their own unique character,backed by a shared culture of excellence.The Groups Wines and Spirits activities are divided between the Cha
71、mpagne and Wines segment and the Cognac and Spirits segment.This business group focuses on growth in highend market segments through a powerful,agile international distribution network.The Group is the world leader in cognac,with Hennessy,and in champagne,with an outstanding portfolio of brands and
72、complementary product ranges.It also produces highend still and sparkling wines from around the world.Fashion and Leather Goods:The Group includes established Maisons with their own unique heritage and more recent brands with strong potential.Whether they are part of haute couture or luxury fashion,
73、the Christian Dior groups Maisons have based their success on the quality,authenticity and originality of their designs,created by talented,renowned designers.All the Groups Maisons are focused on the creativity of their collections,building on their iconic,timeless lines,achieving excellence in the
74、ir retail networks and strengthening their online presence,while maintaining their identity.Perfumes and Cosmetics:The Christian Dior group is a key player in the perfume,makeup and skincare sector,with a portfolio of worldfamous established names as well as younger brands with a promising future.It
75、s Perfumes and Cosmetics business group boasts exceptional momentum,driven by growing and securing the longterm future of its flagship lines as well as boldly developing new products.The Maisons cultivate their individuality,a differentiating factor for their followers in a highly competitive global
76、 market.At the same time,they are all driven by the same values:the pursuit of excellence,creativity,innovation and complete control of their brand image.Watches and Jewelry:The Maisons in Watches and Jewelry the Christian Dior groups youngest business group operate in the highend watchmaking,jewelr
77、y and high jewelry sectors.The Group features some of the most dynamic brands on the market,positioned to complement each others strengths.These Maisons rely on their outstanding expertise,creativity and innovation to surprise their customers all over the world and respond to their aspirations.Selec
78、tive Retailing:The Groups Selective Retailing brands all pursue a single objective:transforming shopping into a unique experience.From elegant interior design to a specialist selection of highend products and services,combined with personalized relationships,customers are the focus of their attentio
79、n on a daily basis.Operating all over the world,the Maisons are active in two spheres:selective retail and travel retail(selling luxury goods to international travelers).Other activities:The Maisons in this business group are all ambassadors for culture and an art de vivre that is emblematic of the
80、Christian Dior group.This approach is taken by Maisons including the Les Echos group,which in addition to Les Echos,the leading daily financial newspaper in France owns several business and arts titles;the Royal Van Lent shipyard,which builds and markets customdesigned yachts under the prestigious F
81、eadship name;Belmond,which has a large portfolio of hotels,trains,cruise lines and safari lodges that combine heritage,expertise,authenticity and impeccable service;and the exceptional Cheval Blanc hotels,which operate worldwide.Annual Report as of December 31,202211Management Report of the Board of
82、 Directors:The Christian Dior groupChristian Diors business model2 Group valuesThe Christian Dior group and its Maisons put heart and soul into everything the Group does.Its core identity is based on the fundamental values that run through the entire Group and are shared by everyone in it.Being crea
83、tive and innovative:Creativity and innovation are part of the Groups DNA;throughout the years,they have been the keys to the Maisons success and the basis of their solid reputations.These fundamental values of creativity and innovation are pursued in tandem by the Groups Maisons as they focus on ach
84、ieving the ideal balance between continually renewing their offer while resolutely looking to the future,always respecting their unique heritage.Delivering excellence:Within the Group,quality can never be compromised.Because the Maisons embody everything that is most noble and accomplished in the wo
85、rld of fine craftsmanship,they pay extremely close attention to detail and strive for perfection:from products to services,it is in this quest for excellence that the Group differentiates itself.Cultivating an entrepreneurial spirit:The Groups agile,decentralized structure fosters efficiency and res
86、ponsiveness.It encourages individuals to take initiative by giving everyone a significant level of responsibility.The entrepreneurial spirit promoted by the Group makes risktaking easier and encourages perseverance.It requires a pragmatic approach and the ability to mobilize staff towards achieving
87、ambitious goals.Taking action to make a difference:Every action taken by the Group and its employees reflects its commitment to ethics,corporate social responsibility and respect for the environment.These commitments drive our Maisons performance and ensure their longevity.Firmly convinced that trul
88、y desirable products can only come from sustainable businesses,we are committed to ensuring that our products and the way they are made have a positive impact on our entire ecosystem and the places the Group operates,and that the Group is actively working to build a better future.3 Operating modelTh
89、e Christian Dior groups unique operating model is based on six pillars,and contributes to the Groups longterm success by combining profitable growth,sustainability and a commitment to excellence:Decentralized organization:The structure and operating principles adopted ensure that Maisons are both au
90、tonomous and responsive.As a result,they are able to build close relationships with their customers,make fast,effective and appropriate decisions,and motivate Group employees for the long term by encouraging them to take an entrepreneurial approach.Internal growth:The Group prioritizes internal grow
91、th and is committed to developing its Maisons,and encouraging and protecting their creativity.Staff play a critical role in a model of this kind,so supporting them in their career and encouraging them to exceed their own expectations is essential.Vertical integration:Designed to cultivate excellence
92、 both up and downstream,vertical integration ensures control of every stage of the value chain,from sourcing to production facilities and Selective Retailing.It also guarantees strict control of each Maisons brand image.Creating synergies:Resources are pooled at Group level to create intelligent syn
93、ergies while respecting each Maisons independence and autonomy.Christian Diors shared strength as a Group is used to benefit each Maison individually.Securing expertise for the long term:The Maisons that make up the Christian Dior group cultivate a longterm vision.To protect their identity and excel
94、lence,the Group and its Maisons have implemented numerous tools to pass on expertise and promote artisanal and creative skills in the next generation.Balance across business segments and geographies:The Group has the resources to sustain regular growth thanks to the balance across its business activ
95、ities and a welldistributed geographic footprint.This balance means that the Group is wellpositioned to withstand the impact of shifting economic factors.12Annual Report as of December 31,2022Annual Report as of December 31,202213Management Report of the Board of Directors:The Christian Dior group2
96、Business overview,highlights and outlook1 Wines and Spirits 1411 Champagne and Wines 1412 Cognac and Spirits 1613 Wines and Spirits distribution 1814 Highlights of 2022 and outlook for 2023 182 Fashion and Leather Goods 1921 The brands of the Fashion and Leather Goods business group 1922 Competitive
97、 position 2023 Design 2024 Distribution 2125 Supply sources and subcontracting 2126 Highlights of 2022 and outlook for 2023 223 Perfumes and Cosmetics 2431 The brands of the Perfumes and Cosmetics business group 2432 Competitive position 2533 Research 2534 Manufacturing,supply sources and subcontrac
98、ting 2535 Distribution and communication 2536 Highlights of 2022 and outlook for 2023 264 Watches and Jewelry 2741 The brands of the Watches and Jewelry business group 2742 Competitive position 2843 Distribution 2844 Supply sources and subcontracting 2845 Highlights of 2022 and outlook for 2023 295
99、Selective Retailing 3151 Travel retail 3152 Selective retail 3153 Competitive position 3254 Highlights of 2022 and outlook for 2023 326 Other activities 3314Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outloo
100、k1 Wines and SpiritsIn 2022,revenue for the Wines and Spirits business group represented 9%of the Christian Dior groups total revenue.Champagne and wines made up 49%of this revenue,while cognacs and spirits accounted for 51%.11 Champagne and Wines111 Champagne and Wine brandsThe Group produces and s
101、ells a very broad range of highquality champagnes.Beyond the Champagne region,the Group develops and distributes a range of highend still and sparkling wines produced in nine countries spanning four continents:France,Spain,the United States(California),Argentina,Brazil,Australia,New Zealand,India an
102、d China.Mot&Chandon was founded in 1743 by Claude Mot and elevated to international renown by his descendant JeanRmy Mot,who dreamed of“sharing the effervescence of champagne with the world”.From royal court to red carpet and from Studio 54 to grand slams,Mot&Chandon brings people together to share
103、thrilling and extraordinary moments.With the regions largest and most diversified vineyards,the Maison offers a universal and versatile portfolio of champagnes to suit every occasion and palette.Easy to love,each creation from the iconic Mot Imprial to the refined Grand Vintage collection,from the g
104、lamorous Mot Ros Imprial to the refreshing Mot Ice Imprial dazzles and delights with a broad range of flavors and aromas capturing the surprising extent of its terroir.Through its longterm sustainable development program,Natura Nostra,Mot&Chandon is working to protect biodiversity in the region.The
105、Maison has also been supporting philanthropic initiatives through Toast for a Cause since 2009.For nearly three centuries,Mot&Chandon has been the champagne of choice to mark key events in history and personal celebrations,adding a spark of effervescence to each toast.Dom Prignon carries on the lega
106、cy of Dom Pierre Prignon,the 17thcentury Benedictine monk whose ambition was to make“the best wine in the world”.Dom Prignon only releases vintage champagnes.Cellar Master Vincent Chaperon has total control over the process of blending and maturing wines,which are the expression of his creative visi
107、on.The wine evolves in successive phases,each one a window of expression,called Plnitudes.Veuve Clicquot,which will celebrate its 250th anniversary in 2022,is highly acclaimed for its work with Pinot Noir and its expertise in reserve wines,accounting for between 30%and 45%of its Brut Yellow Label an
108、d Ros cuves.Since its founding in 1772,the champagne house has stayed true to its motto,“Only one quality:the finest”,as illustrated by its prestige cuve La Grande Dame,a blend bringing together its eight classic grands crus.Innovations are also an essential part of its DNA,as Madame Clicquot was be
109、hind several still in use today.Among other breakthroughs,she created the first vintage champagne(1810),invented the riddling table process to clarify champagne(1816),and created the first blended ros champagne(1818).Paying homage to her legacy,in 1972 Veuve Clicquot established what is now known as
110、 the Bold Woman Award,which has recognized women entrepreneurs around the world for 50 years.Ruinart,founded in 1729,is the oldest of the champagne houses.Each of its cuves expresses the distinctive personality of Chardonnay,the Maisons dominant grape variety.Born in 1843 out of the dream of one man
111、 with a vision,Krug stands out for the indisputable excellence of its expertise and its unending quest to deliver poetic sensory experiences.Joseph Krug dreamed of offering the most generous expression of champagne each and every year,whatever the vagaries of the climate.Krug Grande Cuve is the embo
112、diment of this raison dtre:the Krug family has created a new edition of this cuve every year going back six generations.Mercier,founded in 1858,offers the simplest of tasting experiences.A reflection of its era,it adapts traditional ways of tasting,putting the focus on spontaneity over ceremony,whil
113、e remaining faithful to the vision of quality espoused by its founder Eugne Mercier.Mercier champagne is all about boldness,spontaneity and authenticity.The Maisons full range consists of Mercier Brut,Mercier Brut Ros,Mercier Demi-Sec,Mercier Brut Rserve and Mercier Blanc de Noirs.In 2021,the Group
114、acquired a 50%stake in the share capital of Armand de Brignac.Jointly owned with Shawn“JayZ”Carter,the brand continued its growth and confirmed its superluxury positioning.The Groups portfolio of wines beyond champagne includes a number of prestigious appellations in France,Spain,America,Asia and Oc
115、eania.The Group owns the following wineries outside of France:Cloudy Bay in New Zealand;Cape Mentelle in Australia;Newton Vineyard,the iconic Colgin Cellars(founded by Ann Colgin 30 years ago and acquired by LVMH in 2017)and Joseph Phelps(one of the most acclaimed wine estates in Napa Valley and acq
116、uired by LVMH in 2022)in California;Terrazas de los Andes and Cheval des Andes in Argentina;Ao Yun in China;and Numanthia Termes in Spain.The Chandon brand(created in 1959 in Argentina)includes the Mot Hennessy sparkling wines developed in California,Argentina,Brazil,Australia,India and China by Cha
117、ndon Estates.In France,since 1999 the Group has owned Chteau dYquem,the most celebrated Sauternes and the only Premier Cru Suprieur in the 1855 classification.Since 2009,the Group has held a 50%stake in the prestigious winery Chteau Cheval Blanc,Premier Grand Cru class A Saintmilion,accounted for us
118、ing the equity method.In 2014,the Group acquired Domaine du Annual Report as of December 31,202215Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookClos des Lambrays,one of the oldest and most prestigious Burgundy vineyards,and Grand Cru of t
119、he Cte de Nuits.Lastly,Chteau Galoupet(which has held the acclaimed Cru Class des CtesdeProvence designation since 1955)and Chteau dEsclans(the US market leader in Provence ros wines,headed by Sacha Lichine)also joined the portfolio of wines in 2019.112 Competitive positionIn 2022,shipments of LVMH
120、champagne brands were up 6.2%from 2021,while shipments from the Champagne region increased by 1.6%(source:CIVC).LVMHs market share thus rose to 22.5%of the total shipments,compared to 21.5%in 2021.Champagne shipments,for the whole Champagne region,break down as follows:(in millions of bottles and pe
121、rcentage)202220212020Sales volumeMarket share (%)Sales volumeMarket share (%)Sales volumeMarket share (%)RegionGroupRegionGroupRegionGroupFrance1384 91 65 36860Export1875 644 343 308454347Total3259 734 225 320869024(Source:Comit Interprofessionnel du Vin de Champagne
122、 CIVC)The geographic breakdown of the Groups champagne sales in 2022 is as follows(as a percentage of total sales expressed in number of bottles):(as%)202220212020Germany5 55United Kingdom7 78United States23 2524Italy4 44Japan10 910Australia5 54Other34 3232Total export88 8787France12 1313Total100 10
123、0100113 The champagne production methodThe Champagne appellation covers a defined geographic area classified A.O.C.(Appellation dOrigine Contrle),which covers the 34,000 hectares that can be legally used for production.There are essentially three main types of grape varietals used in the production
124、of champagne:Chardonnay,Pinot Noir and Pinot Meunier.In addition to its effervescence,the primary characteristic of champagne is that it is the result of blending wines from different years and/or different varieties and land plots.The best brands are distinguished by their masterful blend and consi
125、stent quality,achieved thanks to the talent of their wine experts.Weather conditions significantly influence the grape harvest from one year to the next.The production of champagne also requires aging in cellars for two years or more for premium,vintage and/or prestige cuves.To protect themselves ag
126、ainst crop variations and manage fluctuations in demand,but also to ensure consistent quality year after year,the Groups champagne houses regularly adjust the quantities available for sale and keep reserve wines in stock,mainly in storage tanks.As maturation times vary,the Group constantly maintains
127、 significant champagne inventories in its cellars.An average of 229 million bottles are stored in the Groups cellars in the Champagne region,equivalent to about three years of sales;in addition to this bottled inventory,the Group has wines still in storage tanks waiting to be drawn(equivalent to 98
128、million bottles),including the quality reserve withheld from sale in accordance with applicable industry rules(equivalent to 6 million bottles).The making of champagne involves extremely rigorous processes in order to ensure absolute consistency in quality from year to year.Mot et Chandon fully oper
129、ates its Mont Aigu site,with its vat room,bottling line,cellars,disgorging area and packaging workshop supplementing the production capacity of Mot&Chandons historic facilities in Epernay,which are undergoing renovation work.The historic production sites of Veuve Clicquot,Ruinart and Krug are in Rei
130、ms.Veuve Clicquot continued construction of its new Comte production facility located in SaintLonard,near Reims,while Krug finalized construction of a new winemaking site in Ambonnay.In order to drive innovation and develop expertise in its production processes,the Group inaugurated its research and
131、 development facility in Oiry in 2021,which is open to all its Maisons.114 Grape supply sources and subcontractingThe Christian Dior group owns 1,650 hectares under production,which provide 20%of its annual needs.In addition,the Groups Maisons purchase grapes and wines from wine growers and cooperat
132、ives on the basis of multiyear agreements;the largest supplier of grapes and wines represents less than 10%of total supplies for the Groups Maisons.16Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookThe Gr
133、oups champagne houses,along with their partner grape suppliers,are steadily building up their use of sustainable winegrowing practices.Since 1996,industry agreements have established a qualitative reserve in order to cope with variable harvests.The surplus inventories stockpiled this way can be sold
134、 in years with a poor harvest.Each year,the INAO(the French governing body for appellations of origin)sets the maximum harvest that can be made into wine and sold under the Champagne appellation,as well as the ceiling known as the PLC(plafond limite de classement),the quantity by which the appellati
135、ons marketable yield can be exceeded.For the 2022 harvest,the marketable yield for the Champagne appellation was set at 12,000 kg/ha.The maximum level of the stockpiled reserve is set at 8,000 kg/ha.The price paid for each kilogram of grapes in the 2022 harvest ranged between 5.85 euros and 6.75 eur
136、os depending on the vineyard,an average increase of 9%compared to the 2021 harvest.Premiums may be paid on top of the basic price in line with the special conditions agreed under each partnership,including for sustainable winegrowing.Dry materials(bottles,corks,etc.)and all other components of conta
137、iners and packaging are purchased from nonGroup suppliers.In 2022,the champagne houses used subcontractors for about 31 million euros of services,notably pressing,handling and storing bottles.12 Cognac and Spirits121 Cognac and Spirits brandsThe Group holds the most powerful brand in the cognac sect
138、or with Hennessy.The company was founded by Richard Hennessy in 1765.Historically,the brand was most prominent in the Irish and British markets,but Hennessy rapidly expanded its presence in Asia,which represented nearly 30%of its shipments as early as 1925.The brand became the world cognac leader in
139、 1890.Hennessy created X.O(Extra Old)in 1870,and since then it has developed a range of highend cognac for which it is highly renowned.In 2005,the Group acquired The Glenmorangie Company,which owns the single malt whisky brands Glenmorangie,distilled in northeastern Scotland in Europes tallest still
140、s,and Ardbeg,distilled on the Isle of Islay in the southern Hebrides.Since 2007,the Group has owned the luxury vodka Belvedere,founded in 1993 in order to bring a luxury vodka for connoisseurs to the American market.It is made at the Polmos yrardw distillery in Poland,which was founded in 1910.Since
141、 2017,Volcn de mi Tierra tequila,which was created in collaboration with Mexican entrepreneur Juan Gallardo Thurlow,has been primarily available in the United States and Mexico.Volcn de mi Tierra is accounted for using the equity method.Acquired in 2017,Woodinville Whiskey Company which was establis
142、hed in 2010 by Orlin Sorensen and Brett Carlile and is now the largest craft whiskey distillery in Washington State finished work on a major production capacity expansion program in 2022.In 2020,the Group expanded its portfolio of spirits with the launch of Eminente,an exceptional Cuban rum aimed at
143、 the European market.122 Competitive positionIn 2022,the volumes shipped from the Cognac region were down 4.7%from 2021(source:BNIC),while volumes of Hennessy shipped increased by 0.9%.Hennessys market share of volumes shipped from the Cognac region improved by 3 points to 48%in 2022 from 45%in 2021
144、.The Company is the world leader in cognac and premium international spirits,with particularly strong positions in the United States,China and other important markets for cognac(South Africa,Nigeria,the United Kingdom,etc.).The leading geographic markets for cognac,both for the industry and for the
145、Group,on the basis of shipments in number of bottles,excluding bulk,are as follows:(in millions of bottles and percentage)202220212020Sales volumeMarket share (%)Sales volumeMarket share (%)Sales volumeMarket share (%)RegionGroupRegionGroupRegionGroupFrance51 23 452 53244544118443Europe(excl France)
146、277 74 267 2896622827765236United States1106 635 574 030611593Asia501 173 345 5727368Other markets152 93 616 62599Total2087 998 478 280914486(Source:Bureau National Interprofessionnel du Cognac BNIC)Annual Report as of December 31,202217Management Report o
147、f the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookThe geographic breakdown of Group cognac sales,as a percentage of total sales expressed in number of bottles,is as follows:(as%)202220212020United States60 6569Japan1 1Asia(excl Japan)19 1815Europe(excl France)8
148、 77Other12 108Total export100 100100France Total100 100100123 The cognac production methodThe Cognac region is located around the Charente basin.The vineyard,which currently extends over more than 83,000 hectares,consists almost exclusively of the Ugni Blanc varietal which yields a wine that produce
149、s the best eauxdevie.This region is divided into six vineyards,each of which has its own qualities:Grande Champagne,Petite Champagne,Borderies,Fins Bois,Bons Bois and Bois Ordinaires.Hennessy selects its eauxdevie essentially from the first four vineyards,where the quality of the wines is more suita
150、ble for the preparation of its cognacs.Charentaise distillation is unique because it takes place in two stages:a first distillation(premire chauffe)and a second distillation(seconde chauffe).The eauxdevie obtained are aged in oak barrels.Cognac results from the gradual blending of eauxdevie selected
151、 on the basis of vintage,origin and age.Hennessy which carries out all of its production in Cognac inaugurated a stateoftheart bottling and packaging plant named Pont Neuf in 2017.With the inauguration of a second production line at the Pont Neuf plant in 2021,the Maisons production capacity has bee
152、n raised to 10 million cases per year.The design of this 26,000squaremeter facility reduces its environmental footprint and optimizes working conditions to an extent never achieved previously.124 Supply sources for wines and cognac eauxdevie and subcontractingMost of the cognac eauxdevie that Hennes
153、sy needs for its production are purchased from a network of approximately 1,600 independent producers,a collaboration which enables the Company to ensure that exceptional quality is preserved as part of an ambitious sustainable winegrowing policy.Hennessy directly operates about 180 hectares,providi
154、ng for less than 1%of its eauxdevie needs.Purchase prices for eauxdevie are agreed on between the company and each producer based on supply and demand and the quality of the eauxdevie.In 2022,eauxdevie harvest prices were 6%above their level in the previous harvest,with this increase following on fr
155、om a 3.5%increase in 2021.With an optimized inventory of eauxdevie,the Maison can manage the impact of price changes by adjusting its purchases from year to year under the contracts with its partners.Hennessy continues to control its purchase commitments and diversify its partnerships to prepare for
156、 its future growth across the various quality grades.Like the Champagne and Wine businesses,Hennessy obtains its dry materials(bottles,corks and other packaging)from nonGroup suppliers.The barrels and casks used to age the cognac are also obtained from nonGroup suppliers.Hennessy makes only very lim
157、ited use of subcontractors for its core business:aging,blending and bottling eauxdevie.125 The vodka production method,supply sources and subcontractingBelvedere vodka is made using only two ingredients Polish rye and pure water and is produced at one of Polands oldest distilleries,which has been ma
158、king vodka since 1910.Belvedere contains no additives according to Polish laws governing vodka production,which stipulate that nothing may be added.Belvedere,an expert in rye distilling,draws upon more than 600 years of Polish tradition to produce extraordinary vodka with a distinct flavor and chara
159、cter.Overall,Belvederes top raw eauxdevie supplier represents less than 35%of the Companys supplies.126 The Scotch whisky production methodAs required by law to receive the Scotch whisky designation,the Glenmorangie and Ardbeg single malt whiskies are produced in Scotland from water and malted barle
160、y,fermented using yeast,and distilled and matured in Scotland for at least three years,in oak casks whose capacity may not exceed 700 liters.As single malt whiskies,they are the product of only one distillery.Glenmorangies stills are the tallest in Scotland at 5.14 meters and allow only the lightest
161、 vapors to ascend and condense.The spirit still at Ardbeg has a unique spirit purifier.Glenmorangie whiskies are normally matured for a minimum of 10 years in very highquality casks,while Ardbeg whiskies can be sold earlier as their uniquely peaty flavor has already developed.18Annual Report as of D
162、ecember 31,2022Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlook13 Wines and Spirits distribution(1)Diageo has a 34%stake in Mot Hennessy,which is the holding company of the LVMH groups Wines and Spirits businessesMot Hennessy has a powerful
163、 and agile global distribution network,thanks to which the Wines and Spirits business group continues to expand the presence of its portfolio of brands in a balanced manner across all geographies.Part of this network consists of joint ventures with the Diageo spirits group(1),governed by agreements
164、that have been in place since 1987,which help strengthen the positions of the two groups,improve distribution control,enhance customer service and increase profitability by sharing distribution costs.This mainly involves Japan,China and France.In 2022,26%of champagne and cognac sales were made throu
165、gh this channel.14 Highlights of 2022 and outlook for 2023 202220212020Revenue(EUR millions)7,099 5,9744,755Of which:Champagne and wines3,474 2,7932,119Cognac and spirits3,625 3,1812,636Sales volumes (in millions of bottles)Champagne709 668524Cognac943 1026946Other spirits239 208161Still and sparkli
166、ng wines565 515418Revenue by geographic region of delivery(%)France6 65Europe(excl France)18 1818United States37 3841Japan6 56Asia(excl Japan)20 2119Other markets13 1211Total100 100100Profit from recurring operations (EUR millions)2,155 1,8631,388Operating margin(%)304 312292HighlightsTurning in ano
167、ther record year,the Wines and Spirits business group reaffirmed its position as a leader in luxury wines and spirits.Amid an extremely volatile environment,this performance reflected three key priorities of the business groups valueenhancing strategy:brand appeal;portfolio diversification,particula
168、rly in wines;and balanced geographic expansion.2022 was also a year marked by the desire to connect more directly with customers by offering them unique experiences at the Maisons,at European department stores and on the island of Hainan in China.Online sales made further gains,while the Private Sal
169、es business had an outstanding year,with several exceptional sales of rare casks.Mot Hennessy demonstrated its environmental and social commitment by holding the first World Living Soils Forum in Arles in June,an initiative aimed at accelerating the development and sharing of knowledge to combat the
170、 loss of fertile soil.Driven by strong demand,which led to mounting pressure on supply,champagne sales volumes were up 6%.All regions saw substantial growth,in particular at highenergy events and drinking establishments and fine dining venues.Mot&Chandon turned in a record year while taking part in
171、ambitious sustainable development projects for its region,focused in particular on protecting biodiversity.Selected as the official champagne partner for Queen Elizabeth IIs Platinum Jubilee celebrations,the Maison presented its Grand Vintage 2015 and opened its first eponymous champagne bar at Harr
172、ods in London.Dom Prignon augmented its appeal with its“Rvlations”campaign to mark the launch of Dom Prignon 2004 Plnitude 2,and through the renewal of its collaboration with worldfamous star Lady Gaga.For its 250th anniversary,Veuve Clicquot turned in stellar results,buoyed by a worldwide marketing
173、 campaign,a traveling exhibition and a unique experience aboard the legendary Venice SimplonOrientExpress luxury train.The Maison also celebrated the 50th anniversary of both its prestige cuve La Grande Dame and its womens entrepreneurship program.Ruinart recorded strong growth in all its markets,wi
174、th the launch of Dom Ruinart Blanc de Blancs 2010,named Supreme World Champion for 2022 at the Champagne&Sparkling Wine World Championships.The Maison continued the rollout of its sustainably designed case and its agroforestry winegrowing pilot project.Krug confirmed the success of its unique model
175、with the release of Krug Grande Cuve 170e dition and Krug Ros 26e dition,and the launch of an immersive musical experience by acclaimed composer Ryuichi Sakamoto,inspired by tastings of 2008 vintages.Jointly owned with Shawn“JayZ”Carter,Armand de Brignac completed its first full year as part of the
176、Group,recording solid sales growth in all regions.The Estates&Wines Maisons saw strong demand,especially Cloudy Bay(New Zealand)and Terrazas de los Andes(Argentina).Among Provence ros wines,Chteau dEsclans continued to expand its reach to international markets at a rapid pace,while the launch by Cht
177、eau Galoupet of its 2021 Cru Class illustrated the success of its revival,with the estate receiving accolades in the press for the superior quality of its wines and its firm commitment to sustainable development.Ao Yun became the first Chinese vintage to be sold via wine distribution Annual Report a
178、s of December 31,202219Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlooknetwork La Place de Bordeaux,confirming its excellence and its ability to win over fine wine lovers around the world.Lastly,the acquisition of Joseph Phelps Vineyards,on
179、e of the most acclaimed wine estates in Napa Valley,California,strengthened and rounded out its portfolio of exceptional wines.Chandon further cemented its leadership position in quality sparkling wines,supported by the redesign of its marketing and packaging in 2021.Its allnatural product Chandon G
180、arden Spritz continued its worldwide development,with launches in Southern Europe and the AsiaPacific region.Given the exceptionally high comparison base in 2020 and 2021,Hennessy cognac volumes were down slightly year on year,affected in China by the public health situation and in the United States
181、 by supply chain disruptions.The Maisons proactive approach to value creation and firm pricing helped offset these circumstances and achieve a further increase in revenue over the course of the year.The world leader in premium spirits for the fourth consecutive year,Hennessy further strengthened its
182、 appeal through initiatives such as the renewal of its partnership with the NBA,several openings of attractive stores,a stunning redesign for V.S.O.P packaging and a new marketing campaign for its premium qualities entitled“Paradis is on Earth”.The Maison has made its sustainable development activit
183、ies a central part of its 10year roadmap through three key priorities:protecting living soils,reducing its carbon footprint by 50%by 2030,and demonstrating its commitment to society.Glenmorangie and Ardbeg whiskies generated record sales,fueled by highimpact marketing campaigns,new packaging at Glen
184、morangie,launches of innovative products such as Glenmorangie Azuma Makoto and Ardbeg Fermutation,as well as exceptional sales of rare casks.The San Francisco World Spirits Competition and International Spirits Challenge saw them win 25 gold medals.Ardbeg connected more directly with customers,with
185、its acquisition of a hotel on the Isle of Islay and the launch of an ecommerce platform in the United Kingdom.Belvedere vodka benefited from enthusiasm among consumers,particularly at highenergy clubs,and turned in a record performance.A new marketing campaign,featuring actor Daniel Craig,conveyed t
186、he Maisons vision and boldness.Woodinville continued its development in the United States and invested in its production capacity to support its future growth.Volcn de mi Tierra capitalized on strong growth in the tequila market and continued its move upmarket with the creation of Volcn X.A,an ultra
187、premium blend.Eminente rum gained ground in the ultrapremium market.OutlookThe economic and geopolitical environment remains uncertain in key markets,due in particular to the effects of inflation and developments relating to the public health situation in China.Against this backdrop,the Wines and Sp
188、irits business group is going into 2023 with confidence and determination,mindful of the need to maintain a pragmatic,agile approach.Excellence,authenticity,innovation and sustainability remain central to the business groups valueenhancing strategy that helps fuel its growth,as does the diversificat
189、ion of Mot Hennessys portfolio.Backed by the strength of its highly appealing brands as well as its vibrant,diverse and highly committed staff,the business group remains resolutely optimistic about the medium and longterm development prospects of its Maisons.In line with Mot Hennessys overarching fo
190、cus on crafting experiences,the business group will build stronger ties with customers by taking a selective approach to points of sale,launching bold innovations and collaborations,crafting experiences that are ever more meaningful and unique for enjoying its products,and stepping up its digital pr
191、esence.More aware than ever of the value of their heritage and their responsibility,all of the Maisons are taking greater steps to act sustainably,protect the environment and reduce their carbon footprint.2 Fashion and Leather GoodsIn 2022,the Fashion and Leather Goods business group represented 49%
192、of the Christian Dior groups total revenue.21 The brands of the Fashion and Leather Goods business groupIn the luxury fashion and leather goods sector,the Group holds a portfolio of brands that are primarily French,but also include Italian,Spanish,British,German and American companies.Since 1854,Lou
193、is Vuittons success has been built on the flawless execution of its trunkmaking craftsmanship,its complete control over distribution and its exceptional creative freedom,a source of perpetual renewal and innovation.By ensuring the right balance between new designs and iconic leather goods lines,betw
194、een constantly perfected unique artisanal expertise and the dynamics of fashion designed in perfect symbiosis with the brand universe,the Maison is committed to surprising its customers,and making its stores inspiring.For over 150 years,its product line has continuously expanded with new models from
195、 luggage to handbags and more and new materials,shapes and colors.Famous for its originality and the high quality of its creations,today Louis Vuitton is the world leader in luxury goods and offers a full range of products:fine and highend leather goods,readytowear for men and women,shoes and access
196、ories,watches,jewelry,eyewear and,since 2017,a collection of womens and mens fragrances.20Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookChristian Dior Couture was founded in 1946.Ever since its first Ne
197、w Look show,the Maison has continued to assert its vision through elegant,structured and infinitely feminine collections,becoming synonymous around the world with French luxury.Christian Diors unique vision is conveyed today with bold inventiveness throughout the Maisons entire range,from haute cout
198、ure,leather goods and readytowear to footwear and accessories for both men and women as well as Watches and Jewelry.Parfums Christian Dior is included in the Perfumes and Cosmetics business group.Founded in Rome by Adele and Edoardo Fendi in 1925,Fendi initially seduced its clientele of elegant Ital
199、ian women,before conquering the rest of the world.Fendi has been part of the Group since 2000.Particularly wellknown for its skill and creativity in furs,the brand is also present in accessories including the iconic Baguette bag and the timeless Peekaboo as well as readytowear and footwear.Loewe,the
200、 Spanish Maison founded in 1846 and acquired by the Group in 1996,originally specialized in very highquality leather work.Today it operates in leather goods,readytowear and footwear.Perfumes Loewe is part of the Perfumes and Cosmetics business group.Marc Jacobs,created in New York in 1984,is named a
201、fter its founder and has been part of the Group since 1997.Through its collections of mens and womens readytowear,leather goods and shoes,it aims to be the symbol of an irreverent urban fashion movement that is culturally driven but also socially engaged.Celine,founded in 1945 by Cline Vipiana and o
202、wned by the Group since 1996,offers womens and mens readytowear,leather goods,shoes,accessories and fragrances.Kenzo,formed in 1970,joined the Group in 1993.Renowned for its lavish prints and vibrant colors,the Maison operates in the areas of readytowear for men and women,fashion accessories and lea
203、ther goods.Its perfume business is part of the Perfumes and Cosmetics business group.Givenchy was founded in 1952 by Hubert de Givenchy and has been part of the Group since 1988.The Maison is rooted in a tradition of excellence in haute couture and is also known for its collections of mens and women
204、s readytowear and its fashion accessories.Parfums Givenchy are included in the Perfumes and Cosmetics business group.Emilio Pucci,an Italian brand founded in 1947,is a symbol of casual fashion in luxury readytowear,a synonym of escape and refined leisure.Emilio Pucci joined the Group in 2000.Berluti
205、,an artisan bootmaker established in 1895 and held by the Group since 1993,designs and markets very highquality mens shoes,as well as a line of leather goods and readytowear items for men.Loro Piana,an Italian company founded in 1924 and held by the Group since 2013,creates exceptional products and
206、fabrics,particularly from cashmere,of which it is the worlds foremost processor.The brand is famous for its dedication to quality and the noblest raw materials,its unrivaled standards in design and its expert craftsmanship.Rimowa,founded in Cologne in 1898,is the first German brand to be owned by th
207、e Group.Renowned for its prestigious luggage,its products feature an iconic design and reflect its constant quest for excellence.22 Competitive positionIn the Fashion and Leather Goods sector,the luxury market is highly fragmented,consisting of a handful of major international groups plus an array o
208、f smaller independent brands.The Christian Dior groups brands are present all around the world,and it has established itself as one of the most international groups.All these groups compete in various product categories and geographic areas.23 DesignWorking with the best designers,while respecting t
209、he spirit of each brand,is a strategic priority:the creative directors promote the Maisons identities,and are the artisans of their creative excellence and their ability to reinvent themselves.As a means to continually renew this precious resource,the Group has always been committed to supporting yo
210、ung designers and nurturing tomorrows talent,in particular through the LVMH Prize for Young Fashion Designers,which each year honors the work of an upandcoming designer displaying exceptional talent and outstanding creativity.The Christian Dior group believes that one of its essential assets is its
211、ability to attract a large number of internationally recognized designers to its Maisons.In 2022,Louis Vuittons Menswear collections were presented by the Maisons studio team following the tragic loss at the end of 2021 of Virgil Abloh,who had served as Creative Director of Menswear since 2018.In 20
212、21,Tomoaki Nagao,known as Nigo,was named Creative Director of Kenzo,taking over from Felipe Oliveira Baptista who had been at the helm since 2019,while Camille Miceli became the first female designer to lead Emilio Pucci and Kris Van Assche departed as Creative Director of Berluti.In 2020,Kim Jones
213、Annual Report as of December 31,202221Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlooksucceeded Karl Lagerfeld to continue driving the success of the Romebased fashion house alongside Silvia Fendi.Matthew M.Williams was named as Creative Di
214、rector of all Givenchys womens and mens collections.Since 2018,Kim Jones has been Creative Director of Menswear at Christian Dior and Hedi Slimane has been Artistic,Creative and Image Director at Celine.Since 2016,Maria Grazia Chiuri has been the first female Creative Director of Diors Womenswear co
215、llections.At Louis Vuitton,Nicolas Ghesquire has been creating designs for womens collections in perfect symbiosis with the values and spirit of the brand since 2013.Jonathan Anderson has been Loewes Creative Director since 2013.Marc Jacobs continues to lead the design team at the brand he founded i
216、n 1984.24 DistributionControlling the distribution of its products is a core strategic priority for the Christian Dior group,particularly in the luxury fashion and leather goods sector.This control allows the Group to benefit from distribution margins,and guarantees strict control of the brand image
217、,sales reception and environment that the brands require.It also gives the Group closer contacts with its customers so that it can better anticipate their expectations,thereby offering them unique shopping experiences.In order to meet these objectives,the Group has the premier international network
218、of exclusive boutiques under the banner of its Fashion and Leather Goods brands.This network included more than 2,000 stores as of December 31,2022.25 Supply sources and subcontractingIn 2022,Louis Vuitton continued to invest in production capacity in France,notably by opening a second workshop in B
219、eaulieu(MaineetLoire)and a new workshop in CharmessurlHerbasse(Drme).At the same time,a second workshop was opened in Italys Abruzzo region.Including these additions,Louis Vuittons twentyseven leather goods workshops nineteen in France,three in Spain,three in the United States and two in Italy manuf
220、acture most of the Maisons leather goods.In addition to manufacturing and model making for leather goods,Louis Vuittons workshops in Italy handle all development and manufacturing processes for all types of footwear,as well as development for certain accessories(textiles,jewelry and eyewear).In addi
221、tion to leather goods manufacturing,Louis Vuittons workshops in Spain also handle all leather goods accessories(belts and straps).Louis Vuitton uses external manufacturers only to supplement its manufacturing.Louis Vuitton purchases its materials from suppliers located around the world,with whom the
222、 Maison has established sustainable partnership relationships.The supplier strategy implemented over the last few years has enabled the Maison to meet its requirements in terms of volume,quality and innovation while engaging its suppliers in a CSR approach.This strategy is the result of a policy of
223、focusing on and supporting the best suppliers while limiting Louis Vuittons reliance on them.Accordingly,the leading supplier in the leather market accounts for nearly 22%of Louis Vuittons leather supplies,while the leader in the metal parts market also represents about 20%of its metal parts supplie
224、s.Christian Diors production capacity and use of outsourcing vary very widely depending on the product.In leather goods,Christian Dior works with companies outside the Group to increase its production capacity and provide greater flexibility in its manufacturing processes.In readytowear and high jew
225、elry,it purchases supplies mainly from nonGroup businesses.Fendi and Loewe have leather workshops in their countries of origin,and in Italy for Celine and Berluti,which cover only a portion of their production needs.Rimowa manufactures a large proportion of its products in Germany.Generally,the subc
226、ontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the brands country of origin,France,Italy and Spain.Loro Piana manages all stages of production of its readytowear collections,from the sourcing of natural fibers to the delivery
227、 of finished products to stores.Loro Piana procures its unique materials(baby cashmere from northern China and Mongolia,vicua from the Andes,and extrafine Merino wool from Australia and New Zealand)through exclusive partnerships with suppliers all over the world.Its exquisite textiles and products a
228、re then manufactured in Italy.Moreover,in order to safeguard and develop the Fashion and Leather Goods companies access to the highquality raw materials and expertise they need,the LVMH Mtiers dArt business segment created in 2015 invests in,and provides longterm support to,its best suppliers.In lea
229、ther,for example,LVMH has worked with the Koh brothers since 2011 to develop the business of the Heng Long tannery in Singapore.Founded in 1950,it is now a leading crocodilian leather tannery.In 2012,the Group acquired Tanneries Roux,founded in 1803 and one of the last French tanneries specializing
230、in calfskin.In 2017,the Group formed Thlios,a joint venture with Marcolin,combining the latters eyewear expertise with the knowhow of LVMH.At the end of 2021,the Group purchased the stake held by Marcolin and became the sole owner of Thlios.Lastly,fabric suppliers for the different Maisons are often
231、 Italian,but on a nonexclusive basis.The designers and style departments of each Maison ensure that manufacturing does not generally depend on patents or exclusive expertise owned by third parties.22Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior gr
232、oupBusiness overview,highlights and outlook26 Highlights of 2022 and outlook for 2023 202220212020Revenue(EUR millions)38,648 30,89621,207Revenue by geographic region of delivery(%)France7 55Europe(excl France)17 1618United States21 2119Japan9 910Asia(excl Japan)36 4139Other markets10 89Total100 100
233、100Type of revenue (%of total revenue)Retail95 9493Wholesale5 66Licenses 1Total100 100100Profit from recurring operations (EUR millions)15,709 12,8427,188Operating margin(%)406 416339HighlightsThe Fashion and Leather Goods business group delivered an outstanding performance,buoyed by the creative mo
234、mentum of its Maisons and strong demand from their customers.Powerful brand appeal,continued enhancements to the customer experience and new digital inroads were key growth drivers.The business group continued to proactively develop centers of excellence for craftsmanship.Louis Vuitton had a terrifi
235、c year,once again buoyed by its exceptional creativity,the quality of its products,and its strong ties to art and culture.Nicolas Ghesquire broke new ground by presenting his collections at the Muse dOrsay in Paris,and chose the Salk Institute in San Diego,California,for his 2023 Cruise show.In a tr
236、ibute to Virgil Abloh,who passed away in 2021,Louis Dreamhouse,his final Mens collection,was shown in Paris and Bangkok,while the Coming of Age exhibition at the Fondation Louis Vuitton paid homage to the designers world.Highlighting its commitment to grow its footprint in France and champion excell
237、ent craftsmanship,the Maison opened two new workshops,including one for precious leather at Trinity Abbey,a historic monument in Vendme.Between them,the two workshops will employ 400 leatherworkers.As part of a continued quest for excellence in its retail network,in France,Louis Vuitton relocated it
238、s Lille store into the iconic Huitrire,a former Art Deco restaurant listed as a historic monument.A new Louis Vuitton Maison store was inaugurated in Chengdu,China,on a site that typifies the historic architecture of Sichuan,and opened a flagship store in Kobe whose decor is heavily influenced by Ja
239、panese art and design.To celebrate the 20th anniversary of its iconic Tambour watch,Louis Vuitton unveiled the Tambour Twenty collectors edition,modeled by Bradley Cooper,which sold out immediately.Highlighting the Maisons passion for innovation in watchmaking,La Fabrique du Temps Louis Vuitton laun
240、ched the Louis Vuitton Watch Prize for Independent Creatives,aimed at recognizing and supporting upandcoming talent.The 200 Trunks,200 Visionaries traveling exhibition was presented at the founders historic family home in Asnires and then in Singapore,Los Angeles and New York.In December,the LV Drea
241、m exhibition opened in Paris,paying tribute to the many creative partnerships that have shaped the Maisons history.A store offering exclusive products,a caf,and a pastry and chocolate shop offering gourmet creations by Maxime Frdric,pastry chef at Cheval Blanc Paris,rounded out the experience at thi
242、s unique location,making it a new cultural and culinary destination in the French capital.Christian Dior achieved remarkable growth across all its product lines.Following a threeyear transformation,the reopening of its 30 Montaigne location at the beginning of the year was a resounding success.With
243、the historic Maison,haute couture workshops and salons as well as a restaurant,gardens and much more,this legendary address offers a unique experience of the Dior universe.The Maisons fashion shows were truly unique experiences as well,drawing on a wealth of inspiration season after season.Maria Gra
244、zia Chiuris womens collections combine artistic vision with the finest expertise,as demonstrated by the 2023 Cruise show in Seville,designed as a tribute to Andalusian craftsmanship.The Dior Homme Fall/Winter 2023 Collection by Kim Jones was unveiled in a nighttime show against the backdrop of the P
245、yramids of Giza in Egypt:a spectacular futuristic odyssey and a world first in the history of fashion at this legendary site.The Dioriviera summer capsule collection was launched worldwide in stores and popup locations at resort destinations.In jewelry,the new La Rose Dior collection stars actress E
246、lizabeth Debicki.After opening its first Scandinavian store in Oslo in July,Dior ended the year with a spectacular event at Harrods in London,illuminating and decorating the windows and facades of the iconic department store with a dazzling array of gingerbread creations.The Christian Dior:Designer
247、of Dreams exhibition arrived at the Museum of Contemporary Art in Tokyo.Celine had another record year,continuing to deliver strong growth.Driven by Hedi Slimanes modern and exacting creative vision,highimpact fashion shows and powerful marketing campaigns,the Maisons appeal was reflected across all
248、 its product categories.After a fashion show shot in SaintTropez for the Indie Summer collection,the final part of the year saw the Womens Winter 2023 show at the legendary Wiltern Theater in Los Angeles.Leather goods were buoyed by the iconic Triomphe and 16 lines,enriched with new models and promo
249、ted by summer capsule collections.Readytowear sales picked up,with footwear and fragrances also enjoying strong momentum.Annual Report as of December 31,202223Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookFor Fendi,2022 was marked by the
250、success of collections designed by Kim Jones and Silvia Venturini Fendi,and by strong momentum in all of the Maisons business lines.In September,a New York fashion show celebrated the 25th anniversary of the iconic Baguette bag,featuring numerous reinterpretations,including a charm version developed
251、 with Tiffany and a collaboration with Marc Jacobs that was an instant hit.Two new workshops were opened:one,for leather goods and accessories,in the Tuscan hills near Florence,and the other,for footwear,in Fermo in the Marche region.These investments,together with the acquisition of a majority stak
252、e in knitwear producer Maglificio Matisse,are testament to Fendis commitment to Italian expert craftsmanship.Selective development of the store network also continued.New form,new image:it was a milestone year for Loro Piana,as demonstrated by the success of its two 2022 collections,its new Cocoonin
253、g lifestyle line made with undyed natural cashmere,and its iconic whitesoled shoes.Once again buoyed by its unique expertise and its worldclass materials such as vicua wool,the Maison continued to raise its profile by showcasing this craftsmanship and its capacity for innovation,mainly illustrated i
254、n 2022 by the new CashDenim,a blend of cotton and cashmere woven by Japanese artisans on traditional looms.Loewe,which experienced strong growth,cultivated the art of surprise through collections infused with Jonathan Andersons bold creativity and highly modern vision.The success of JW Andersons fas
255、hion shows and communication boosted brand awareness and the Maisons appeal.Already very strong in Europe,Loewe strengthened its positioning in the United States,opening new stores in New York and Los Angeles.The Maison continued to develop its leather goods school.Marc Jacobs confirmed its fresh mo
256、mentum,with an impressive performance in the United States and remarkably robust online sales.Buoyed by high levels of social media engagement,the Maison saw strong growth in demand for its bestselling bags,particularly its Tote Bag.At Givenchy,Matthew Williams held his first Menswear show in Paris
257、in June.The Maison opened new directly operated stores in the Middle East and the United States.Sales of the iconic Shark Lock boot in particular grew strongly.Following the excellent response to Nigos first fashion show in Paris in January,Kenzo continued to affirm the creative vision of its new Cr
258、eative Director,launching a series of monthly minicapsules and unveiling the complete collection in June.Berluti was boosted by a focus on its iconic lines,in particular its Alessandro and Andy shoes and the Un Jour leather goods line.Its new“Live Iconic”marketing campaign channeled historic style i
259、cons Marcello Mastroianni and Andy Warhol.The Playoff sneaker was launched,inspired by the world of 1980s basketball and paying homage to the Maisons very first sneaker.Retail network expansion was mainly focused on Asia,where the Maison opened new stores in Chengdu(China)and Kobe(Japan),and renovat
260、ed a historic store in Tokyo.Rimowa achieved record revenue as tourism and business travel picked up,with this performance fueled by the unique quality of its products and the expansion of its network of directly operated stores.The Maison launched a new campaign dubbed“Ingenieurskunst”(“The Art of
261、Engineering”),celebrating German expert craftsmanship and paying tribute to its iconic aluminum suitcase.Rimowa now offers a lifetime guarantee on all its suitcases.A collaboration was launched with startup RTFKT,which specializes in the metaverse,to create an NFT collection and a limitededition phy
262、sical suitcase.Pucci unveiled Camille Micelis first collections at presentations in Capri and St.Moritz that adopted a bold new format.OutlookWith the vigilance required by an economic and geopolitical context that remains uncertain,the Fashion and Leather Goods Maisons will continue investing for e
263、ver more appealing designs,unique customer experiences and further progress in corporate social responsibility.Louis Vuitton will spur momentum over the months ahead by focusing on the quest for perfection and creativity that runs through all its professions.The Maison will continue to anchor its gr
264、owth in the constant reinvention of its iconic product lines and the qualitydriven development of its retail network and its manufacturing sites.It will continue its dialogue with art and artists,as already demonstrated at the beginning of 2023 by a second colorful collaboration with Japanese artist
265、 Yayoi Kusama.It will actively pursue its commitment to promoting and passing on excellence in craftsmanship,sales and design professions.Christian Dior will aim to sustain its remarkable growth.To this end,the Maison will continue to showcase its timeless modernity and Monsieur Diors unique values,
266、which continue to inspire its designers,season after season.The months ahead will feature a number of exceptional shows,openings and events worldwide.Driven by its powerful creative vision,Celine will continue enhancing its appeal,guided by Hedi Slimane,and will expand its retail network with the op
267、ening of several flagship stores and the resumption of direct control over its distribution.All the Maisons will focus on selectively expanding and cultivating excellence in their retail networks.24Annual Report as of December 31,2022Management Report of the Board of Directors:The Christian Dior gro
268、upBusiness overview,highlights and outlook3 Perfumes and CosmeticsIn 2022,the Perfumes and Cosmetics business group posted revenue of 7,722 million euros,representing 10%of the Christian Dior groups total revenue.31 The brands of the Perfumes and Cosmetics business groupParfums Christian Dior which
269、was born in 1947,the year Christian Dior held his first fashion show introduced the revolutionary concept of“total beauty”with the launch of Miss Dior perfume,followed by makeup with Rouge Dior lipstick in 1953 and Diors first line of skincare products in 1973.Today,Parfums Christian Dior allocates
270、1.8%of its revenue to research and is on the cutting edge of innovation.Diors perfumer Francis Kurkdjian,who took over from Franois Demachy,and Creative Director for makeup Peter Philips are building on Christian Diors rich heritage and legacy by combining bold vision and unique expertise,in harmony
271、 with the Maisons couture collections.Guerlain,founded in 1828 by PierreFranoisPascal Guerlain,has created more than 700 perfumes since its inception,and enjoys an exceptional brand image in the world of perfume.Heir to an olfactory repository of more than 1,100 fragrances,the Maisons perfumer Thier
272、ry Wasser travels the world today in search of the most exclusive raw materials.Violette,Creative Director of Makeup,aims to help women reveal and enhance their natural beauty.The Maisons iconic perfumes include Aqua Allegoria,LArt et La Matire,La Petite Robe Noire and Shalimar.Founded in 1957,Parfu
273、ms Givenchy continues to honor the values of its founder,Hubert de Givenchy,through its perfumes,makeup and skincare products.From LInterdit to Givenchy Gentleman,the Maisons fragrances embody Givenchys unique vision,inspired by the avantgarde spirit and sensual aura of the fashion houses couture co
274、llections.The first womens fragrance by Kenzo Parfums was released in 1988.Kenzo Parfums went on to create a series of fragrances whose unique and offbeat spirit has made its mark on the world of perfume,including Flower by Kenzo,Kenzo Homme,and Leau Kenzo.Benefit Cosmetics,founded in San Francisco
275、in 1976 by twins Jean and Jane Ford,joined the Group in late 1999.Benefit has forged its own distinctive identity among cosmetics brands,thanks to the relevance and effectiveness of its products,bursting on the scene with playful,plucky names,creative packaging,and custom services.Fresh,which starte
276、d out in 1991 as a humble apothecary shop,joined the Group in September 2000.Remaining true to its roots by using natural ingredients,the Maison continues to develop its unique approach combining innovative ingredients with timehonored techniques to transform everyday routines into holistic sensoria
277、l experiences.Perfumes Loewe introduced its first perfume in 1972.Perfumes Loewe embodies the quintessentially Spanish spirit:elegant,refined,strong and unpredictable,with floral,woody and lemony essences.Make Up For Ever,which was created in 1984 and joined the Group in 1999,is a professional makeu
278、p brand with an innovative range of exceptional products designed for stage actors and other performers,makeup artists,and makeup lovers around the world.Founded in Parma in 1916,Acqua di Parma was acquired by the Group in 2001.Through its fragrances and beauty products imbued with elegance,Acqua di
279、 Parma synonymous with Italian excellence and fine living embodies discreet luxury.Kendo is a cosmetics brand incubator set up in 2010,which now houses six brands:KVD Vegan Beauty,Ole Henriksen,Fenty Beauty by Rihanna,which was launched in 2017,Fenty Skin,Fenty Fragrance and Lip Lab.These brands are
280、 primarily distributed by Sephora,as well as increasingly via the Brands own sites.Maison Francis Kurkdjian was founded in 2009 by the renowned perfumer to explore new territories for perfume by creating custom fragrances for his private clientele and by collaborating with artists for installation p
281、rojects involving scents.This acquisition,which was completed in 2017,has established the Group in the fastgrowing field of niche perfumes.Officine Universelle Buly passes on and updates the heritage of beauty every day,drawing on the excellence of the past to offer the best of the present.Boldness,
282、precision and curiosity combine to create rare,planetconscious and iconic products inspired by history and travel.The Maison,committed to French expertise and excellent service,was acquired by LVMH in 2021.STELLA,launched in 2022,is a skincare range developed in partnership with designer Stella McCa
283、rtney,a pioneer of responsible fashion.STELLA aims to offer a responsible alternative in the selective skincare market through an essential range of three products.The brand,launched in the United Kingdom on the Space NK website and at the designers flagship store,is also available internationally f
284、rom the brands website.Annual Report as of December 31,202225Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlook32 Competitive positionThe Groups brands have maintained their global competitive position thanks to the success of their fragrance
285、s,particularly in Europe and the United States,and the recovery in makeup in the United States,despite the ongoing impact on the skincare market of the public health situation in China.33 ResearchEstablished in 1981,the LVMH Recherche GIE(economic interest group)is a research and innovation center f
286、or the brands that make the Groups perfumes and cosmetics,including Parfums Christian Dior,Guerlain,Givenchy,Kenzo,Make Up For Ever and Fresh.LVMH Recherche aims to create the sustainable digital beauty of the future by working on aspects as varied as wellbeing,social and environmental impact,person
287、alized propositions,unrivaled product performance,brand new sensory experiences and new uses.LVMH Recherche is thus moving into not just one but many exciting new areas.Spread across five sites around the world(Hlios in SaintJeandeBraye,Kosmo in Paris,and Asian innovation centers in Tokyo,Shanghai a
288、nd Seoul),LVMH Recherches 670 employees(including researchers,chemists,biologists,toxicologists,pharmacists and others)deliver over a thousand exceptional products in the skincare,makeup and fragrance categories every year.These very highquality products are developed with the greatest respect for t
289、he environment and in keeping with each Maisons sensory signature and unique identity.Innovation and openness to the world are at the heart of the strategy pursued by LVMH Recherche(400 patent families),which works with a number of public bodies(including universities,the French National Scientific
290、Research Center and the French National Institute of Health and Medical Research)and private sector organizations(notably startups,SMEs and midtier enterprises)in France and abroad.LVMH Recherche has gradually created a genuine innovation ecosystem whose aim is to identify the most promising technol
291、ogical advances and accelerate their development by building strategic partnerships in new scientific fields as varied as agroecology,biotechnology,cellular biology,advanced materials,new processes,Big Data,artificial intelligence,and so on.Through this strategy of fostering open innovation in multi
292、ple fields,LVMH Recherche aims to position itself at the cutting edge of innovation in areas like using environmentally friendly technologies to source the Groups natural raw materials,generating new highperformance assets through the use of revolutionary processes,adopting circular packaging princi
293、ples,revolutionizing antiageing treatments and developing advanced diagnostics.34 Manufacturing,supply sources and subcontractingThe six French production centers of Guerlain,Parfums Christian Dior and LVMH Fragrance Brands meet almost all the manufacturing needs of the four major French brands,incl
294、uding Kenzo Parfums,in fragrances as well as makeup and beauty products.Make Up For Ever,Maison Francis Kurkdjian,Acqua di Parma,Benefit,Perfumes Loewe and Fresh have some of their products manufactured by the Groups other brands,with the remainder subcontracted externally.Dry materials,such as bott
295、les,stoppers and any other items that form the containers or packaging,are acquired from suppliers outside the Group,as are the raw materials used to create the finished products.In certain cases,these materials are available only from a limited number of French or foreign suppliers.Most product for
296、mulas are developed at the LVMH Recherche laboratories in SaintJeandeBraye(France),but the Group can also acquire or develop formulas from specialized companies,particularly for perfume essences.35 Distribution and communicationThe presence of a broad spectrum of brands within the business group gen
297、erates synergies and represents a market force.The volume effect means that advertising space can be purchased at competitive rates,and better locations can be negotiated in department stores.The use of shared services by subsidiaries increases the effectiveness of support functions for worldwide di
298、stribution and facilitates the expansion of the newest brands and their access to new markets.These economies of scale permit larger investments in design and advertising,two key factors for success in the Perfumes and Cosmetics business group.26Annual Report as of December 31,2022Management Report
299、of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookExcellence in retailing is key to the Groups Perfumes and Cosmetics Maisons.It requires expertise and attentiveness from beauty consultants,as well as innovation at points of sale.The Groups perfumes and cosmet
300、ics brand products are sold mainly through“selective retailing”channels(as opposed to massmarket retailers and drugstores),although certain brands also sell their products in their own stores and on their own ecommerce sites.Parfums Christian Dior mainly distributes its products to selective retail
301、chains,such as Sephora,and department stores,as well as increasingly to its own store network and ecommerce sites.Guerlains products are distributed through its network of directly operated stores,enabling it to develop its unique expertise,supplemented by a network of partner retail outlets.In addi
302、tion to sales through its exclusive boutiques around the world,Benefit currently retails in some 50 countries worldwide.Make Up For Ever products are sold through exclusive boutiques around the world,and through a number of Selective Retailing circuits,particularly in France,Europe and the United St
303、ates(markets developed in partnership with Sephora),as well as in China,South Korea and the Middle East.Now based in Milan,Acqua di Parma relies on an exclusive retailing network,including its directly operated stores.The Kendo brands are primarily distributed by Sephora,as well as increasingly by t
304、heir own sites.Maison Francis Kurkdjian mainly operates in department stores in the United States and through a network of department stores and proprietary stores in Europe.To meet the expectations of younger generations,who are looking for originality,as well as demand for a connected instore and
305、online experience,all brands are accelerating the implementation of their online sales platforms,particularly on their own sites,and stepping up their digital content initiatives.Our brands are actively incorporating digital tools to enhance the customer experience and attract new consumers.36 Highl
306、ights of 2022 and outlook for 2023 202220212020Revenue(EUR millions)7,722 6,6085,248Revenue by geographic region of delivery(%)France9 99Europe(excl France)20 1918United States19 1614Japan5 45Asia(excl Japan)35 4245Other markets12 109Total100 100100Profit from recurring operations (EUR millions)660
307、68480Operating margin(%)85 10315HighlightsRetaining its focus on its highly selective distribution strategy,the Perfumes and Cosmetics business group was boosted by the ongoing success of iconic fragrances and the rebound in makeup.Skincare,which had seen rapid growth in China,was hit by the public
308、health situation in the country.Innovation played a key role in the progress made by LVMHs Maisons.Parfums Christian Dior achieved remarkable growth worldwide.The Maison reinforced its leading positions in Europe and Japan,and confirmed its strong momentum in its other key markets,in particular the
309、United States,South Korea,Southeast Asia and the Middle East.All the iconic lines drove this strong performance,backed by a strong social media presence.Fragrances were buoyed by the success of the Maisons core collections:Sauvage,which saw very strong growth,confirmed its position as the worlds bes
310、tselling fragrance across all categories;Jadore benefited from the successful global launch of Parfum dEau;Miss Dior continued its ongoing success and Dior Homme was boosted by the relaunch of Dior Homme Sport.The Collection Prive range of exceptional fragrances accentuated its growth and was enrich
311、ed with the first scents crafted by Francis Kurkdjian,the Maisons new Creative Director of Fragrances,who revisited two historic signatures.Skincare was buoyed by the vitality of the premium category,in particular the Prestige range,boosted by the new version of La Crme,presented in sustainably desi
312、gned packaging,as well as rapid growth in the LOr de Vie range and the launch of La Mousse OFF/ON foaming cleanser as part of a new range of water lilyinfused makeup removers.Growth in makeup was fueled by the success of new lipsticks(refillable Dior Addict and transferproof Rouge Dior Forever)and t
313、he solid performance of the new version of its Forever liquid foundation.The Maison ramped up the development of its spa business.Online sales grew rapidly through directly operated sites.The Maison adopted an omnichannel marketing approach spanning all traditional and digital channels to place itse
314、lf among the most visible and appealing beauty brands.In connection with its“Beauty as a Legacy”CSR mission,it stepped up its efforts to promote biodiversity through the cultivation of flowers as a source of environmental regeneration,and ambitiously committed to cutting its greenhouse gas emissions
315、 by 46%by 2030.Guerlain continued its growth,buoyed by a strong performance in fragrances.The LArt et la Matire collection,which embodies the Maisons excellence in high perfumery,was enriched with new fragrances,while the Aqua Allegoria collection maintained its strong momentum and equally powerful
316、commitments,with the launch of the Aqua Allegoria Forte range of more intense eau de parfum scents and a lush new video in the marketing campaign directed by Yann ArthusBertrand.Skincare also turned in a strong performance,with the Abeille Royale range invigorated by the relaunch of its star product
317、,Double R Renew&Repair Advanced Serum.Guerlains fifteen years of commitment to sustainability through its“In the Name of Beauty”program were recognized with a number of prestigious awards.This commitment is now incarnated by Angelina Jolie to give it even greater resonance worldwide.Annual Report as
318、 of December 31,202227Management Report of the Board of Directors:The Christian Dior groupBusiness overview,highlights and outlookParfums Givenchy saw good momentum among its iconic fragrances:LInterdit confirmed its success,while Irresistible made further headway,driven by its Eau de Toilette Frach
319、e version,and Gentleman broke ground with Rserve Prive,a bold collaboration with Glenmorangie whisky,bringing together and celebrating two emblems of expert craftsmanship.Makeup saw the relaunch of Le Rouge Interdit lipstick.Benefit pursued growth through highimpact initiatives.The brow category,in
320、which the brand is the world leader,was boosted by the launch of the Gimme Brow+Volumizing Pencil and the rollout of the innovative Brow Lamination service at its Brow Bars.Another success was the launch of Wanderful World,a comprehensive collection of powder blushes.Its The Porefessional range was
321、expanded with an ultralightweight version.Fresh reaffirmed its expertise in the use of natural ingredients with the launch of Tea Elixir,a new serum that boosts skins resilience to stressors.Make Up For Ever saw business driven by an innovation program developed with its collective of makeup artists
322、.Its HD Skin undetectable foundation was a major success.The Maison presented its first exhibition of body and face art,showcasing the work of its Academys most talented students.Growth at Kenzo Parfums was driven by the new LAbsolue version of its Flower by Kenzo flagship line and its marketing cam
323、paign.Maison Francis Kurkdjian achieved remarkable growth in the United States and Europe,fueled by the success of its Baccarat Rouge 540 fragrance and the launch of its new 724 scent.The Maison partnered with the Palace of Versailles as part of a patronage project and opened its first store in Chin
324、a.Acqua di Parma continued to grow at a brisk pace,driven by the momentum of its Signatures of the Sun line,with the launch of Magnolia Infinita and the Zafferano exclusive limited edition for Harrods.Its new Colonia C.L.U.B.fragrance was an instant bestseller.For Perfumes Loewe,international expans
325、ion through a new pointofsale concept was the main growth driver.The Maisons first store was opened in China and its ecommerce site is now available in forty countries.Fenty Beauty doubled its revenue in 2022 through its expanded distribution and successful launches.Fenty Skin saw strong growth in t
326、he body care category.Officine Universelle Buly continued its expansion,in particular in Japan,with five new points of sale.In Paris,the Maisons officines,or dispensaries,benefited from growing brand awareness.A new version of the website was launched.OutlookWhile remaining vigilant,as called for by
327、 the uncertainty of the current environment,the Perfumes and Cosmetics Maisons will continue to invest selectively in their strengths:brand appeal,accelerated innovation and digital initiatives,and a selective approach to retail networks.Parfums Christian Dior,building on the brands excellent moment
328、um,has set ambitious leadership targets that will draw on innovation to enrich its iconic lines,Sauvage,Miss Dior,Rouge Dior,Jadore,La Collection Prive,Capture and Prestige,in particular.Reflecting its desire to connect more directly with its customers,the Maison will continue expanding its network
329、of directly operated stores,while increasing the share of digital in its sales and marketing.Lastly,Dior will maintain its commitment to corporate social responsibility through its holistic“Beauty as a Legacy”program.Guerlain will see a flurry of exciting developments,with the reinvention of its sta
330、r product,the Micro-Lift Concentrate version of Orchide Impriale,and largescale initiatives including a collaboration with the prestigious Maison Matisse,founded by the family of the renowned French painter,for the LArt et la Matire collection,as well as the launch of a natural,notransfer matte foun
331、dation in the iconic Terracotta range.Parfums Givenchy will launch a major initiative in mens fragrances and move its skincare lines further upmarket.While implementing a plan focused on major innovations and boosting its flagship products,Maison Francis Kurkdjian will roll out the new store concept
332、 it revealed in 2022.Acqua di Parma will unveil an exceptional collaboration with designer Samuel Ross.4 Watches and JewelryIn 2022,the Watches and Jewelry business group represented 13%of the Christian Dior groups total revenue.41 The brands of the Watches and Jewelry business groupTAG Heuer,a pion
333、eer of Swiss watchmaking since 1860,which was acquired by the Group in November 1999,combines innovative technology with the ultimate in precision timekeeping and avantgarde designs to create extremely accurate watches.Its most coveted traditional and automatic watches and chronographs are the Carrera,Aquaracer,Formula 1,Link and Monaco lines.In 2010,TAG Heuer launched the first automatic movement