• Luxury products group LVMH Moët Hennessy Louis Vuitton recorded revenue of €44.2 billion in   the first nine months of 2021, up 46% compared to 2020. Organic revenue   growth, which strips out currency effects and acquisitions, was up 40%   compared to 2020. This jump in revenue was largely due to strong performance   in the company's fashion and spirit division as well as base effects that   resulted from a slump in sales in 2020 due to the Covid pandemic. Compared to   2019, organic growth over the first nine months of 2021 was 11%.

  • Looking at the various divisions. The Fashion & Leather Goods   business group reported a record €21.3 billion for the nine months, which was an increase of   38% compared to 2019. The fashion division is LVMH’s largest and brings in   almost three-quarters of annual operating profit and includes brands such as   Louis Vuitton and Christian Dior. The robust performance over the period was   driven by these two iconic houses as well as Fendi, Celine, Loewe and Marc   Jacobs

  • The Wines & Spirits business group recorded organic revenue   growth of 30% in the first nine months of 2021 compared to the same period of   2020 and 10% compared to 2019. Champagne volumes were up 7% compared to the   first nine months of 2019. Growth was particularly strong in the United   States and Europe, which notably benefited over the summer from the reopening   of restaurants and the gradual recovery of tourism. Hennessy cognac performed   well with a 4% increase in volumes compared to 2019 while being limited by   supply constraints.

  • The Perfumes & Cosmetics business group recorded organic revenue   growth of 30% over the first nine months of 2021 compared to the same period   of 2020. On an organic basis, revenue was down 2% compared to the first nine   months of 2019. In an environment marked by a limited recovery in   international travel and the closure of many points of sale, major brands   continued to be selective in their distribution, limit promotions and grow   online sales via their own website

  • · The Watches & Jewelry business group recorded organic revenue   growth of 49% in the first nine months of 2021 compared to the same period of   2020 and 4% compared to 2019. Growth was driven by robust performance by   Tiffany and Bvlgari.

  • Although LVMH trades on a lofty multiple 30x the company has an   outstanding track record of generating outstanding returns on capital over   the long run, which perhaps justifies this valuation. The company owns an   unparalleled group of luxury brands creating a unique moat which in our view   should continue to see LVMH generate these returns over the years to come.   Perhaps a conversation between the late Steve Jobs of Apple and LVMH CEO and   Chairman Bernard Arnault sums up the timelessness of LVMH best. Steve Jobs   reached out to Arnault when he was thinking about opening Apple stores.   Arnault said that Jobs told him, “You know, Bernard, I don’t know if in 50   years’ time my iPhone will still be a success but I can tell you, I’m sure   everybody will drink your Dom Pérignon.” We currently hold LVMH in Cratos   Global Managed portfolios as well as the Cratos Worldwide Flexible Fund.