richemont-vs.-lvmh:-which-international-luxury-conglomerate-reigns-supreme?

Richemont vs. LVMH: Which International Luxury Conglomerate Reigns Supreme?

Jérôme Lambert and Bernard Arnault
Romuald Meigneux/SIPA/AP

The insatiable LVMH has claimed yet another high-profile luxury brand. This time it’s Tiffany & Co.—for $15.8 billion—and if you’re Richemont, that might sound like a threat. The plucky luxury conglomerate may have 50 fewer brands in its portfolio than its monolithic competitor, but Richemont’s dominance in watches and jewelry has been, until now, undisputed. Will LVMH surpass its rival in the category or consume it? Here, a less by-the-book breakdown of the two luxury giants to give you the full picture.

Richemont

LVMH

MARKET CAPITALIZATION IS ABOUT EQUAL TO

$54.1 billion or 1,745 of the Patek Philippe Grandmaster Chime, the most expensive watch ever sold at auction.

Patek Philippe Grandmaster Chime


Patek Philippe

MARKET CAPITALIZATION IS ABOUT EQUAL TO

$225.2 billion or 3,582 of the Pink Star, the most expensive piece of jewelry ever sold at auction.

The Pink Star Diamond


Sotheby’s

ORIGIN STORY

Founded by Anton Rupert, who built an industrial and tobacco group from humble beginnings:  making cigarettes in his garage. Rupert eventually pivoted the business to luxury goods.

ORIGIN STORY

Bernard Arnault, now the CEO, borrowed $15 million from his family’s construction firm to buy Dior when it was up for grabs in 1984.

WFH PICK

A $1,025 Meisterstück pen from Montblanc.

Meisterstück pen from Montblanc


Montblanc

WFH PICK

A pair of Loro Piana sweatpants. (Plus a bottle of Dom for long days at the home office.)

dom perignon


Moët Hennessy

WHAT THE CEO’S WATCH IS SUPPOSED TO BE TELLING US

That Montblanc can do haute horology as well as pens. Jérôme Lambert favors the brand’s Heritage Chronométrie ExoTourbillon Vasco Da Gama Limited Edition 60.

Heritage Chronométrie ExoTourbillon Vasco Da Gama


Montblanc

WHAT THE CEO’S WATCH IS SUPPOSED TO BE TELLING US

That the future is digital. Arnault mostly wears Tag Heuer, lately the brand’s Connected smartwatch. He probably heard it from his son, whom he appointed CEO  last year.

Tag Heuer


Tag Heuer

PANDEMIC LOSSES

82 percent for 2020’s Q1 and Q2 profits, with some comeback in Q3.

PANDEMIC LOSSES

17 percent in 2020 revenue compared with 2019.

YOU PROBABLY DON’T LOVE THEM AS MUCH AS THIS GUY…

Peter Chong, a collector who owns many a rare A. Lange & Söhne watch. He quit his job to write a book about one of the brand’s collections.

Peter Chong


Supplied

YOU PROBABLY DON’T LOVE THEM AS MUCH AS THIS GUY…

Bernard Molyneux, who owns one of the most impressive collections of Louis Vuitton trunks in the world. He sells a select few at his shop in Boca Raton, Fla.

LV luggage


Louis Vuitton

AUCTION EYE-POPPER

$3.7 million for a Vacheron Constantin pocket watch made for King Fuad I of Egypt. 

Vacheron Constantin pocket watch


Vacheron Constantin

AUCTION EYE-POPPER

$2.2 million for a Tag Heuer Ref. 1133 that belonged to Steve McQueen.

Tag Heuer Ref. 1133


Tag Heuer

THEY USED TO OWN WHAT?

A stake in British American Tobacco, which is no longer part of the portfolio. 

THEY USED TO OWN WHAT?

Edun, an ethical fashion brand founded by U2’s Bono in 2005.

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