The 2024 Paris Olympics kick off this Friday and a surprising player has emerged as a dominant force behind the scenes: LVMH, the luxury conglomerate built by Bernard Arnault, the world’s richest man. With a premium sponsorship deal worth nearly $160 million, LVMH is poised to transform these games into a showcase of French savoir-faire and luxury craftsmanship.
The partnership between LVMH and Paris 2024 is both unprecedented and deeply symbolic. As the company states, “To dream, we need inspiration. And what more magnificent inspiration could there be than the values of excellence, courage, hard work, self-sacrifice, team spirit and inclusiveness that define the world of sports?” For LVMH, the Olympics represent an unparalleled opportunity to celebrate France’s exceptional artisanship on the global stage, right in the heart of Paris – the ancestral home to many of its iconic brands.
This collaboration is far from a simple sponsorship deal. LVMH has positioned itself as the “Artisan of All Victories,” promising to apply the passion and skills of its craftspeople to elevate the Olympic experience. Several of the group’s most prestigious brands will play high-profile roles throughout the games:
· Berluti, known for its exquisite leather goods and shoes
· Chaumet, the historic Parisian jeweler
· Dior, a pinnacle of haute couture
· Louis Vuitton, the legendary trunk maker turned global fashion powerhouse
· Moët Hennessy, representing the finest in wines and spirits
· Sephora, serving as the Official Partner of the Olympic and Paralympic Torch Relays
Beyond these brand activations, LVMH is supporting French athletes and will maintain a presence at the Champions Park and Club France. The company is also leveraging the games to highlight its broader social engagement initiatives.
But LVMH’s Olympic strategy extends far beyond the event itself. In the past year, the group has embarked on an ambitious real estate expansion, acquiring prime properties in Paris, New York, and other major cities. This move signals a long-term vision that blends retail, hospitality, and brand experiences.
The transformation of the Champs-Élysées serves as a prime example of this strategy. LVMH has acquired three buildings on the iconic avenue, including a 6,000 square meter property that will become Louis Vuitton’s first hotel. This development is part of a broader effort to revitalize the Champs-Élysées, positioning it once again as a must-visit destination for luxury shopping and leisure.
This approach mirrors LVMH’s successful transformation of Miami’s Design District. There, the company partnered with developer Craig Robins to turn a neglected area of warehouses into a thriving luxury hotspot. Visitors can now shop at a range of LVMH brands, dine at upscale restaurants, and enjoy cultural exhibitions in a curated outdoor space.
The Louis Vuitton hotel on the Champs-Élysées promises to be more than just accommodation; it will likely serve as an immersive brand experience, following in the footsteps of the successful Monsieur Dior restaurant and archive museum that opened in 2022. These projects represent a new frontier for luxury brands, blurring the lines between retail, hospitality, and cultural experiences.
LVMH’s Olympic sponsorship and real estate investments are part of a cohesive strategy to cement its brands’ positions at the pinnacle of global luxury. By aligning itself with the world’s premier sporting event and simultaneously reimagining urban spaces, the company is creating a lasting legacy that extends far beyond the 2024 games.
LVMH reported earnings late yesterday and the company continues to deliver solid, long-term performance. The company has delivered 35 years of continuous organic growth at 9.1% annually with many more years likely to come. It is an example of a high-quality business with heritage brands, family ownership and a loyal customer base. They stock carries a valuation premium with a blended price to earnings ratio (P/E) of 22.5X with earnings per share growth expected around 8% to 12% in the near term.
As Paris prepares to welcome the world, it’s clear that the City of Light will be shining with an extra touch of luxury, courtesy of LVMH. The 2024 Olympics may well be remembered as much for their athletic achievements as for their embodiment of French style and craftsmanship. Get ready for the Louis Vuitton Olympics – where world-class sport meets unparalleled luxury.
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