Annual Report as of December 31, 2023
Combined Shareholders' Meeting
April 18, 2024
Chairman's message � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 2 |
History � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 4 |
Executive and Supervisory Bodies; | |
Statutory Auditors as of December 31, 2023 � � � � � � � � � � � � � � � � � | 5 |
Financial highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 6 |
Management Report of the Board of Directors:
The Christian Dior group � � � � � � � � � � � � � � � � � � � � � � � � � � 9
1. Christian Dior's business model � � � � � � � � � � � � � � � � � � � � � � � � � � | 9 |
2. Business overview, highlights and outlook, � � � � � � � � � � � � � � � 13
3. | Business and financial review � � � � � � � � � � � � � � � � � � � � � � � � � � � | 35 |
4. | Ethics and responsibility � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 49 |
5. | Environment and sustainability � � � � � � � � � � � � � � � � � � � � � � � � � � | 75 |
6. | Attracting and retaining talent � � � � � � � � � � � � � � � � � � � � � � � � � | 119 |
7. | Outreach and giving back � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 141 |
8. Financial and operational risk management
and internal control � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 149 | |
Management Report of the Board of Directors: | ||
Christian Dior parent company � � � � � � � � � � � � � � � � � � | 169 | |
1. | Results of Christian Dior SE � � � � � � � � � � � � � � � � � � � � � � � � � � � | � 170 |
2. | Share ownership of the Company � � � � � � � � � � � � � � � � � � � � � | � 172 |
3. | Stock option and bonus share plans � � � � � � � � � � � � � � � � � � � | � 173 |
4. Summary of transactions in Christian Dior securities during the 2023 fiscal year by company officers and closely related persons (set forth in Article
L. 621-18-2 of the French Monetary and Financial Code) � � � | 176 | |
5. | Share buyback programs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 177 |
Board of Directors' report | ||
on corporate governance � � � � � � � � � � � � � � � � � � � � � � � | 179 | |
1. | Corporate governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 180 |
2. | Compensation of company officers � � � � � � � � � � � � � � � � � � � | 207 |
3. Summary of transactions in Christian Dior securities during the 2023 fiscal year by company officers and closely related persons (set forth in Article
L. 621-18-2 of the French Monetary and Financial Code) � � � 218
Consolidated financial statements � � � � � � � � � � � � � � 219
1. Consolidated income statement � � � � � � � � � � � � � � � � � � � � � � 220
2. Consolidated statement of comprehensive
gains and losses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 221 | |
3. | Consolidated balance sheet � � � � � � � � � � � � � � � � � � � � � � � � � � | 222 |
4. | Consolidated statement of changes in equity � � � � � � � � � � | 223 |
5. | Consolidated cash flow statement � � � � � � � � � � � � � � � � � � � � | 224 |
6. | Notes to the consolidated financial statements � � � � � � � � | 225 |
7. | Consolidated companies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 285 |
- Companies not included in the scope of consolidation � 293
- Statutory Auditors' report on the consolidated
financial statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 294
Parent company financial statements:
Christian Dior � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 299
1. | Income statement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 300 |
2. | Balance sheet � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 301 |
3. | Cash flow statement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 302 |
4. Notes to the parent company financial statements � � � � 303
5. Subsidiaries and equity investments � � � � � � � � � � � � � � � � � � � 310 6. Company results over the last five fiscal years � � � � � � � � � � 311
7. Statutory Auditors' report on the parent
company financial statements � � � � � � � � � � � � � � � � � � � � � � � � � 312
8. Statutory Auditors' special report
on related-party agreements � � � � � � � � � � � � � � � � � � � � � � � � � � 316
General information regarding the parent company and its share capital;
stock market information � � � � � � � � � � � � � � � � � � � � � � � 319
1. | Information regarding the parent company � � � � � � � � � � � � | 320 |
2. | Information regarding the capital � � � � � � � � � � � � � � � � � � � � � � | 323 |
3. | Breakdown of share capital and voting rights � � � � � � � � � � � | 324 |
4. Market for financial instruments issued
by Christian Dior � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � | 326 |
Statement by the person responsible
for the Annual Report� � � � � � � � � � � � � � � � � � � � � � � � � � � 331
As table totals are based on unrounded figures, there may be discrepancies
between these totals and the sum of their rounded component figures.
This document is a free translation into English of the original French "Rapport annuel", hereafter referred to as the "Annual Report". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.
Annual Report as of December 31, 2023
Annual Report as of December 31, 2023 1
Chairman's message
Upward
After three exceptional years, without looking back, we must now think even bigger and with greater focus on the long term. In 2023, the Group extended its lead, protected its margins, increased its investments to prepare for the future and helped its Maisons grow around the world.
Our flagship Maisons have established their positions at the pinnacle of the finest craftsmanship, their names synonymous with the ultimate in prestige and international renown. They exert irresistible appeal, turn heads and inspire dreams; they are where creativity reaches its zenith, where the magnetic force of desirability is strongest. We devote all our energy to making these beacons shine ever more brightly across every continent.
Throughout the challenging period our world has experienced these past few years, the desirability of the products that our Maisons design and craft has continued ever upward among our customers, who have driven growth across the Group at unprecedented rates. It is because each of our 75 Maisons' products inspired joy and encapsulated beauty at a time when joy and beauty really mattered, that our Maisons were able to achieve this growth.
- Annual Report as of December 31, 2023
Investing while reinforcing our margins
Our Group's record results in fiscal year 2023 reflect both the strength of our creative model and our investment capacity, built up to fuel our Maisons' vitality over both the short and the long term. With investments in production capacity and product quality; investments to raise awareness of our Maisons and reinforce their prestige; investments to boost our portfolio of standout properties and locations that underpin our brands' commercial appeal - rarely has the Group invested so much in reinforcing its strengths as it did in 2023. We stand by our convictions: we firmly believe in the long-term benefits that our business model brings to our Group and our environment.
The truer the Group remains to its guiding principles, the more responsive it can be to both the cyclical and transitory shocks that may buffet one or other of its business groups, or the economic regions where its activities are located. While these headwinds may have affected some of them in the past, the Maisons' teams have always drawn on their boundless adaptability and managed to curb their costs and protect their margins.
Remarkable dynamism across all our Maisons
Throughout 2023, all our business groups and Maisons - each in their own way and following their own inspiration - deepened, pushed the boundaries and transcended their creative legacy, reaching new milestones. Louis Vuitton once again revealed the full breadth of its untapped potential through Nicolas Ghesquière's designs, Pharrell Williams' groundbreaking shows and a fresh new range of timepieces. Christian Dior, whose Carousel of Dreams lit up the façade of the Saks Fifth Avenue department store in New York, showcasing Maria Grazia Chiuri and Kim Jones' creativity, continued its robust development. The Group's flagship jewelry and watches Maisons - Tiffany & Co., Bulgari, TAG Heuer - showed remarkable creative dynamism, as did their peers in Perfumes and Cosmetics, while Sephora posted its best-ever performance. Wines and Spirits, which had a mixed year, continued to pursue a value strategy, marrying tradition with innovation. Last year, they welcomed one of Provence's most renowned wine estates: Château Minuty. Lastly, many of our Maisons are contributing, each in their own area of expertise, to the Olympic and Paralympic Games that Paris is hosting in summer 2024, as part of a partnership LVMH has forged to support this unique opportunity to help France shine brightly on the world stage for all to see.
Looking to the future with confidence
Let's look to the future with confidence. While our past three years have sparkled like champagne, the years ahead hold the lasting promise and intensity of the finest wines. This commitment to stay firmly focused on the long term is something that our teams highly value and appreciate: the Group combines the status of a premier private-sector employer with one of the lowest staff turnover rates of large groups - especially in France. It is backed by one of the world's most ambitious training policies, with flagship initiatives like our Institut des Métiers d'Excellence (IME), which has trained 2,700 apprentices since 2014, as well as a range of other training programs available to nearly half of our 213,000 employees. Another of our long-term commitments is to sustainability, reflected in our lasting and growing support for environmental initiatives: under our groundbreaking LIFE 360 environmental program, for example, we have cut our CO2 emissions by almost one-third since 2019, and have substantially ramped up all the Group's initiatives to protect natural habitats, preserve biodiversity and take a circular economy approach to our use of resources. Our long-term commitment is also visible in our presence in local regions and communities, especially in France, where we have close to 120 production sites and where our Maisons are sources of initiative, prosperity and innovation, with a wide range of positive impacts.
Throughout its history, our Group has grown harmoniously, despite the prevailing geopolitical uncertainties. Although those uncertainties persist, our convictions regarding our Group's growth prospects and each Maison's potential remain unchanged. The Group will continue to cultivate the long term, nurturing balance in its business activities and geographical growth regions, investment, innovation and engagement. The Group remains a family group, under the aegis of a family that is fully invested in its future, which conveys - throughout all its Maisons - the drive to pass on values, carry on a legacy and look toward the future, which is so characteristic of entrepreneurial families.
The Group will therefore continue to give all its Maisons what they need to set the most elevated ambitions. If we are steadfast and determined, our Maisons that are already at the zenith of global luxury will undoubtedly be joined by many other Maisons in our Group, whose creativity and power to enchant grows by the day.
Bernard Arnault
Chairman of the Board of Directors
Annual Report as of December 31, 2023 3
History
The history of Christian Dior began in 1946, when Monsieur Christian Dior started his own haute couture establishment in a townhouse at 30 Avenue Montaigne in Paris, where the Company still has its headquarters.
In 1984, the Boussac group - which owned Christian Dior at the time - was acquired by Bernard Arnault in association with a group of investors. In 1988, through one of its subsidiaries, Christian Dior took a 32% stake in LVMH, an ownership interest that would be gradually increased over the years. As of December 31, 2023, Christian Dior thus held 41% of the share capital and 57% of the voting rights of LVMH, while the Arnault family group also held 7% of the share capital and 8% of the voting rights of LVMH as of this same date.
The Christian Dior group was formed through successive alliances among companies that, from generation to generation, have successfully combined traditions of excellence and creative passion with a cosmopolitan flair and a spirit of conquest. These companies now form a powerful, global Group in which the historic companies share their expertise with the newer brands, and continue to cultivate the art of growing while transcending time, without losing their soul or their image of distinction.
From the 14th century to the present
14th century | 1365 | Le Clos des Lambrays | 1952 | Givenchy | ||
Connaissance des Arts | ||||||
16th century | 1593 | Château d'Yquem | ||||
1955 | Château Galoupet | |||||
18th century | 1729 | Ruinart | 1957 | Parfums Givenchy | ||
1743 | Moët & Chandon | Repossi | ||||
1765 | Hennessy | Vuarnet | ||||
1772 | Veuve Clicquot | 1959 | Chandon | |||
1780 | Chaumet | 1960 | DFS | |||
1969 | Sephora | |||||
19th century | 1803 | Officine Universelle Buly | ||||
1970 | Kenzo | |||||
1815 | Ardbeg | |||||
1972 | Perfumes Loewe | |||||
1817 | Cova | |||||
1973 | Joseph Phelps | |||||
1828 | Guerlain | |||||
1974 | Investir-Le Journal des Finances | |||||
1832 | Château Cheval Blanc | |||||
1975 | Ole Henriksen | |||||
1837 | Tiffany & Co. | |||||
1976 | Benefit Cosmetics | |||||
1843 | Krug | |||||
Belmond | ||||||
Glenmorangie | ||||||
1977 | Newton Vineyard | |||||
1846 | Loewe | |||||
1980 | Hublot | |||||
1849 | Royal Van Lent | |||||
1983 | Radio Classique | |||||
1852 | Le Bon Marché | |||||
1984 | Marc Jacobs | |||||
1854 | Louis Vuitton | |||||
Make Up For Ever | ||||||
1858 | Mercier | |||||
1985 | Cloudy Bay | |||||
1860 | TAG Heuer | |||||
1988 | Kenzo Parfums | |||||
Jardin d'Acclimatation | ||||||
1991 | Fresh | |||||
1865 | Zenith | |||||
1992 | Colgin Cellars | |||||
1870 | La Samaritaine | |||||
1993 | Belvedere | |||||
1884 | Bulgari | |||||
1996 | Terrazas de los Andes | |||||
1895 | Berluti | |||||
1998 | Bodega Numanthia | |||||
1898 | Rimowa | |||||
1999 | Cheval des Andes | |||||
20th century | 1908 | Les Echos | ||||
21st century | 2006 | Armand de Brignac | ||||
1914 | Patou | |||||
Château d'Esclans | ||||||
1916 | Acqua di Parma | |||||
Maisons Cheval Blanc | ||||||
1923 | La Grande Épicerie de Paris | |||||
2007 | Barton Perreira | |||||
1924 | Loro Piana | |||||
2008 | KVD Vegan Beauty | |||||
1925 | Fendi | |||||
2009 | Maison Francis Kurkdjian | |||||
1936 | Dom Pérignon | |||||
2010 | Woodinville | |||||
Fred | ||||||
2013 | Ao Yun | |||||
Minuty | ||||||
2017 | Fenty Beauty by Rihanna | |||||
1944 | Le Parisien-Aujourd'hui en France | |||||
Volcán de mi Tierra | ||||||
1945 | Celine | |||||
2020 | Eminente | |||||
1946 | Christian Dior Couture | |||||
2022 | Stella by Stella McCartney | |||||
1947 | Parfums Christian Dior | |||||
Emilio Pucci
- Annual Report as of December 31, 2023
Executive and Supervisory Bodies;
Statutory Auditors as of December 31, 2023
Board of Directors
Bernard ARNAULT
Chairman of the Board of Directors
Antoine ARNAULT
Vice-Chairman of the Board of Directors
Chief Executive Officer
Delphine ARNAULT(1)
Nicolas BAZIRE
Hélène DESMARAIS(1) (2)
Renaud DONNEDIEU de VABRES(2)
Ségolène GALLIENNE(2)
Christian de LABRIFFE(2)
Maria Luisa LORO PIANA
Advisory Board member
Jaime de MARICHALAR y SÁENZ de TEJADA(1)
Performance Audit Committee
Christian de LABRIFFE(2) Chairman
Nicolas BAZIRE
Renaud DONNEDIEU de VABRES(2)
Governance & Compensation Committee
Hélène DESMARAIS(2)
Chairman
Nicolas BAZIRE
Christian de LABRIFFE(2)
Statutory Auditors
Deloitte & Associés
represented by Guillaume Troussicot
Mazars
represented by Isabelle Sapet and Guillaume Machin
Appointment proposed at the Shareholders' Meeting of April 18, 2024
Statutory Auditor in charge of certifying sustainability information
Deloitte & Associés
represented by Guillaume Troussicot and Olivier Jan
(1) Renewal proposed at the Shareholders' Meeting of April 18, 2024. (2) Independent Director.
Annual Report as of December 31, 2023 5
Financial highlights
Key consolidated data
(EUR millions and as %) | 2023 | 2022 | 2021 |
Revenue | 86,153 | 79,184 | 64,215 |
Gross margin | 59,277 | 54,196 | 43,860 |
Gross margin as a percentage of revenue | 69% | 68% | 68% |
Profit from recurring operations | 22,796 | 21,050 | 17,139 |
Current operating margin as a percentage of revenue | 26.5% | 26.6% | 26.7% |
Net profit, before minority interests | 15,921 | 14,702 | 12,664 |
Net profit, minority interests' share | 9,617 | 8,905 | 7,718 |
Net profit, Group share | 6,304 | 5,797 | 4,946 |
Cash from operations before changes in working capital | 29,511 | 26,765 | 22,611 |
Operating investments | 7,478 | 4,969 | 2,664 |
Operating free cash flow (a) | 8,101 | 10,110 | 13,518 |
Equity, Group share | 21,527 | 19,038 | 15,372 |
Minority interests | 38,766 | 35,276 | 30,995 |
Total equity | 60,293 | 54,314 | 46,367 |
Net financial debt (b) | 10,548 | 8,867 | 9,521 |
Net financial debt/Total equity ratio | 17.5% | 16.3% | 20.5% |
- See the consolidated cash flow statement in the consolidated financial statements for the definition of "Operating free cash flow".
- Excluding "Lease liabilities" and "Purchase commitments for minority interests' shares" included in "Other non-current liabilities".
Data per share
(EUR) | 2023 | 2022 | 2021 |
Earnings per share | |||
Basic Group share of earnings per share | 34.94 | 32.13 | 27.41 |
Diluted Group share of earnings per share | 34.93 | 32.11 | 27.40 |
Dividend per share | |||
Interim | 5.50 | 5.00 | 3.00 |
Final | 7.50 | 7.00 | 7.00 |
Gross amount paid for fiscal year (a) | 13.00 (b) | 12.00 | 10.00 |
- Gross amount excluding the impact of tax regulations applicable to recipients.
- For fiscal year 2023, amount proposed at the Shareholders' Meeting of April 18, 2024.
Information by business group
Change in revenue by business group | 2023 | 2022 | Change | 2021 | ||
(EUR millions and as %) | ||||||
Published | Organic (a) | |||||
Wines and Spirits | 6,602 | 7,099 | -7% | -4% | 5,974 | |
Fashion and Leather Goods | 42,169 | 38,648 | +9% | +14% | 30,896 | |
Perfumes and Cosmetics | 8,271 | 7,722 | +7% | +11% | 6,608 | |
Watches and Jewelry | 10,902 | 10,581 | +3% | +7% | 8,964 | |
Selective Retailing | 17,885 | 14,852 | +20% | +25% | 11,754 | |
Other activities and eliminations | 324 | 281 | - | - | 19 | |
Total | 86,153 | 79,184 | +9% | +13% | 64,215 |
- On a constant consolidation scope and currency basis. For 2023, the net exchange rate impact was -4%, and the net impact of changes in the scope of consolidation was nil. The principles used to determine the impact of exchange rate fluctuations on the revenue of entities reporting in foreign currencies and the impact of changes in the scope of consolidation are described on page 39.
- Annual Report as of December 31, 2023
Profit from recurring operations by business group | 2023 | 2022 | 2021 |
(EUR millions) | |||
Wines and Spirits | 2,109 | 2,155 | 1,863 |
Fashion and Leather Goods | 16,836 | 15,709 | 12,842 |
Perfumes and Cosmetics | 713 | 660 | 684 |
Watches and Jewelry | 2,162 | 2,017 | 1,679 |
Selective Retailing | 1,391 | 788 | 534 |
Other activities and eliminations | (415) | (279) | (463) |
Total | 22,796 | 21,050 | 17,139 |
Information by geographic region | |||
Revenue by geographic region of delivery | 2023 | 2022 | 2021 |
(as %) | |||
France | 8 | 8 | 6 |
Europe (excl. France) | 17 | 16 | 15 |
United States | 25 | 27 | 26 |
Japan | 7 | 7 | 7 |
Asia (excl. Japan) | 31 | 30 | 35 |
Other markets | 12 | 12 | 11 |
Total | 100 | 100 | 100 |
Revenue by invoicing currency | 2023 | 2022 | 2021 |
(as %) | |||
Euro | 20 | 19 | 17 |
US dollar | 28 | 30 | 28 |
Japanese yen | 7 | 7 | 7 |
Hong Kong dollar | 3 | 2 | 3 |
Other currencies | 42 | 42 | 45 |
Total | 100 | 100 | 100 |
Number of stores | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
France | 550 | 518 | 522 |
Europe (excl. France) | 1,213 | 1,108 | 1,203 |
United States | 1,128 | 1,054 | 1,014 |
Japan | 497 | 496 | 477 |
Asia (excl. Japan) | 2,003 | 1,829 | 1,746 |
Other markets | 706 | 659 | 594 |
Total | 6,097 | 5,664 | 5,556 |
Annual Report as of December 31, 2023 7
- Annual Report as of December 31, 2023
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Christian Dior SE published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 10:17:22 UTC.