Louis Vuitton and Dior speed up considerably. Fendi, Loewe and Celine keep going fast. Result: LVMH Fashion & Leather Goods division enjoys a boost in sales, which increased by 12% in 2020 third quarter, therefore driving the revenues of the French multinational corporation, which have reached -7%, compared to 2019 quarterly financial statements, as they amounted to 11.955 billion euros. That is evidence, in a negative scenario though, of a remarkable recovery, following -17% in the first quarter and -38% in the second quarter of the year. On top of that, a 7% downturn is even below analysts’ forecast (they had predicted -12%).
Fashion & Leather Goods
LVMH announced that their overall comparable sales have decreased by “only” 7% in 2020 third quarter. They could achieve such result thanks to the outstanding performance provided by their Fashion & Leather Goods Division, whose takings nearly reached 6 billion euros (mostly driven by online business alongside sales in the USA and China) and increased by 12% compared to 2019 third quarter. Online sales as much as Chinese and US markets, most of all, proved particularly rewarding. In a press release, LVMH emphasized Louis Vuitton and Dior performance. Yet, “the other fashion brands enjoyed a fair boost in their business, throughout the third quarter of the year, as well. Fendi, Loewe and Celine, in particular”.
The first nine months
At the end of the first nine months of the year, LVMH overall revenues amounted to 30.3 billion euros, therefore decreasing by 21% compared to 2019 same period. Leather Goods and Fashion have dropped by 11%. Outlook still recommends caution then. For the records, LVMH must also consider the effects of the lawsuit, currently underway, against Tiffany, which has been hindering the potentially “largest buyout in the history of luxury”.
In the photo: on the left, a model by Louis Vuitton (picture taken from it.louisvuitton.com); on the right, Bernard Arnault, LVMH owner (Shutterstock)