LVMH does well in the first quarter and doubles on the analysts’ forecasts. In the first 3 months of 2021, the Fashion & Leather Goods of the French Group took off: +52% at constant rates, compared to 2020’s 1st quarter. Analysts had forecasted a 27% increment. But (even more importantly), fashion and leather goods recorded a 37% increase compared to 2019, for the 1st quarter. Louis Vuitton and Dior, USA and Cina are the focal points for a recovery that, was it to continue till December at this rate, would bring LVMH to go beyond pre-Covid levels before the end of the year.
LVMH does well in the first quarter
LVMH took in 13.96 billion euro int eh 1st quarter of the year, up 30% organically (considering a comparable structure and constant exchange rates) compared to the same period of 1 year ago, when Covid was taking over around the globe. The growth was decisively above the +17% forecasted by UBS (according to Reuters). Compared to pre-pandemic levels and to the 1st quarter of 2019, total sales made by the Bernard Arnault’s group increased by 8%. China and the USA are leading the recovery, favored by their predisposition for online purchases. Europe is moving more slowly.
Leather goods take off
Fashion & Leather Goods is the segment performing the best. In an official note, LVMH cited the “good performance of Louis Vuitton”. While “Christian Dior enjoyed an excellent start to the year. The Lady Dior bag continued to be very successful”. Celine and Loewe did well thanks to the collections by stylists Hedi Slimane and JW Anderson. LVMH claims to be “is well-equipped to build upon the hoped-for recovery in 2021 and regain growth momentum for all its businesses”.
Online: yes, sure, but
“I was forecasting the share of online to decrease on a group-wide basis, particularly in fashion and leather goods, when things normalize. It’s not happening at all to be frank,” said Finance Director Jean-Jacques Guiony, reported by Vogue Business. ““I don’t feel that people are willing to shop just from home. The experience you get from a screen and a store is entirely different. We do believe that nothing replaces the store visit”. Mr. Guinoy told analysts that an increase in product prices is not planned, as of now. And about China’s current tensions? For us this isn’t a problem but rather an opportunity, stated the Director.
Images taken from dior.com (left) and louisvuitton.com (right)