“The crisis has proved the resilience of our business model”, said Jacques Guiony, CFO of LVMH. The French luxury giant recorded a revenue loss of 38% during the 2nd quarter (-28% for the first half of the year), but counts on the “strong signs of an upturn in activity” in China. Taking into consideration the 1st half of 2020, the Fashion & Leather Goods division held well, specifically the products by Louis Vuitton and Dior.
1st quarter
Even with a relevant decrease in sales, LVMH managed to maintain profitability during the 1st half of the year, with net profits (group share) of 522 million euro. A positive result, but still 84% less than the 1st half of 2019. “LVMH – commented Bernard Arnault (in picture), President and CEO – demonstrated excellent resilience in the midst of the health crisis that the world was hit with during the first half of the year”. LVMH recorded 18.4 billion euro in revenue, down 28% from the same period of 2019.
Second quarter
Revenue decreased by 38% during the April-June quarter. Reuters reported that UBS’ analysts had forecasted comparable sales to drop by 39%. According to the official statement made by the French group, some encouraging signals emerged during the month of June. Even more so in Asia, which had a clear imrpovement, with strong recovery in China.
Fashion & Leather Goods
The Fashion & Leather Goods division nearly reached 8 billion euro in sales during the first semester of 2020. The decrease (from recurring operations) was of “just” 24%. Result was “mitigated” by the “good resilience, notably from the major brands”, namely of Louis Vuitton and Dior.
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