Right now, LVMH is valued as a single entity, meaning its high growth brands like Louis Vuitton and Dior are lumped together with slower-growing divisions. I believe LVMH’s current structure is holding back its full potential. A strategic breakup would allow its best brands to thrive independently, unlocking enormous shareholder value while making the company more agile. Investors looking for pure exposure to ultra-premium fashion, beauty, or luxury hospitality can’t get it because LVMH is too diversified.
Just look at how Hermès trades at a higher valuation multiple than LVMH, despite Louis Vuitton being an even stronger brand. If Louis Vuitton were independent, it would likely command a valuation closer to Hermès, which could mean tens of billions in unlocked value.
Only solution: breakup
1. Louis Vuitton Group
• Brands: Louis Vuitton, Berluti, Rimowa, Loro Piana
2. Christian Dior Group
• Brands: Christian Dior (Fashion & Couture), Dior Beauty, Dior Parfums
Dior is already one of the most valuable luxury brands. A standalone Dior would compete directly with Chanel, strengthening its position in high fashion and beauty.
3. Sephora & Beauty
• Brands: Sephora, Benefit, Make Up For Ever, Fenty Beauty, KVD Beauty, Fresh
Sephora could rival Estée Lauder and L’Oréal in market valuation. Right now, it’s buried inside LVMH’s structure instead of being recognized as a major player.
What Happens to LVMH?
LVMH wouldn’t disappear. Instead, it would become a more focused luxury group, keeping its high-margin and diversified businesses:
• Moët Hennessy (Beverages & Spirits)
• Watches & Jewelry (Tiffany & Co., Bulgari, TAG Heuer, etc.)
• Fashion & Leather Goods (Fendi, Givenchy, Celine, etc.)
• Luxury Hospitality (Cheval Blanc, Belmond, etc.)