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The world’s number one luxury goods company reported Thursday a limited decline in revenue of 7% in the third quarter, after a 38% drop in the second quarter. A strong recovery driven by its principal brands, Vuitton, Dior and Hennessy. The business recovery was confirmed in Asia, but also in the United States, despite the pandemic.
Group revenue for the many luxury brands, including Louis Vuitton, Bulgari and Christian Dior, totaled 11.95 billion euros for the quarter ended September 30, down 7% compared to the same period in 2019, on a constant consolidation scope and currency basis.
Recovery in fashion and leather goods
The return to growth in the fashion and leather goods division nevertheless enabled the French luxury goods giant to limit breakage during the health crisis. For the fashion and leather goods sector, LVMH recorded a strong rebound in activity, with a +12% change for the third half of 2020 compared to the third quarter 2019 figures for the same sector.
The fashion and leather goods sector experienced an 11% decline in revenue on a comparable consolidation scope and currency basis over the first nine months of 2020 in a context of economic crisis related to the health crisis of Covid-19, marked by the closure of boutiques for several months.
“Since the beginning of the year, LVMH has demonstrated its resilience in an economic environment severely disrupted by the serious health crisis, which led to a total halt in international travel and the closure of the Group’s boutiques and production sites in most countries for several months“, the company is pleased to announce in a press release.
A 21% decline in sales for the first nine months
For the first nine months of the year, LVMH posted revenue of 30.3 billion euros, down 21% on an organic basis. The French group managed to weather the economic crisis better than most of its competitors. Its share price has declined by only 3% since the beginning of the year, despite the controversial suspension of its project to acquire the American jeweler Tiffany for 16 billion dollars, announced before the start of the pandemic. On this subject, LVMH simply noted that the lawsuit against Tiffany will begin on January 5, 2021.
“In a very turbulent environment, marked by continuing economic and health uncertainties, LVMH will continue to be vigilant and to strengthen its policy of cost control and selective investments“, the Group commented in the press release.
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Featured photo: © Louis Vuitton[/vc_column_text][/vc_column][/vc_row]
