LVMH Moët Hennessy Louis Vuitton operates in a global market and is traded internationally, mainly on the Paris Stock Exchange. In the United States LVMH Moët Hennessy Louis Vuitton is traded as an Over-The-Counter (OTC) investment or through Equity Traded Funds (ETF). Over-The-Counter investments are securities that are traded via a dealer network as opposed to a formal exchange such as the NYSE (Investopedia, Nov. 24, 2003). “An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund” (Investopedia, Nov. 18, 2003). For this summary we followed LVMH Moët Hennessy Louis Vuitton ADR which is listed as an OTC on the NASDAQ under the symbol LVMUY.
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Many luxury goods retailers are moving into the digital world. “Development of mobile applications, websites, and campaigns on social networking sites are some initiatives companies are adopting in order to attract new customers and engage old ones” (“Global Luxury”, 2015). This is also true with LVMH Moët Hennessy Louis Vuitton as they have recently hires Ian Rogers as the new chief digital officer, with the hopes to develop and strengthen their online presence in the digital …show more content…
On Monday, December 31, 2007 LVMUY hit an all-time high of $50.00 for that day, but by closing time the stock had fallen back down to close out at a price of $35.00. Of course in 2008, “the fall of Lehman, which held more than $600 billion in assets, started a chain reaction of financial crises that reverberated throughout the world” (Williams, 2013). Therefore, the recession of 2008 caused LVMUY stock to plunge dramatically and finally hitting a low of $8.90 on November 17, 2008. After the recession period, LVMH’s revenue grew consecutively year after year finally returning to their pre-2008 levels. In 2011, LVMH completed a deal with Bulgari. In 2013, “LVMH expanded its products portfolio when it purchased an 80% stake in Italian cashmere company Loro Piana for $2.57 billion” (“LVMH”, n.d.). However, the rising momentum for this year has been decreased slightly due to the tension within the Eurozone and the Chinese economic slowdown, but with the new market for digital luxury LVMH will still has cash for new acquisitions and
Current Activity …show more content…
Many luxury goods retailers are moving into the digital world. “Development of mobile applications, websites, and campaigns on social networking sites are some initiatives companies are adopting in order to attract new customers and engage old ones” (“Global Luxury”, 2015). This is also true with LVMH Moët Hennessy Louis Vuitton as they have recently hires Ian Rogers as the new chief digital officer, with the hopes to develop and strengthen their online presence in the digital …show more content…
On Monday, December 31, 2007 LVMUY hit an all-time high of $50.00 for that day, but by closing time the stock had fallen back down to close out at a price of $35.00. Of course in 2008, “the fall of Lehman, which held more than $600 billion in assets, started a chain reaction of financial crises that reverberated throughout the world” (Williams, 2013). Therefore, the recession of 2008 caused LVMUY stock to plunge dramatically and finally hitting a low of $8.90 on November 17, 2008. After the recession period, LVMH’s revenue grew consecutively year after year finally returning to their pre-2008 levels. In 2011, LVMH completed a deal with Bulgari. In 2013, “LVMH expanded its products portfolio when it purchased an 80% stake in Italian cashmere company Loro Piana for $2.57 billion” (“LVMH”, n.d.). However, the rising momentum for this year has been decreased slightly due to the tension within the Eurozone and the Chinese economic slowdown, but with the new market for digital luxury LVMH will still has cash for new acquisitions and