The official results will be published next April 16th. But LVMH is starting to forecast its results for 2020’ first quarter. The clear need is to estimate as best as possible, the impacts of the pandemic. The forecasts clearly showcase, as they did in Kering’s case, the inevitable decrease of sales.
In a short note published on March 27th, the French group wrote the following: “The sales’ number isn’t known as of today, but we can reasonably forecast that it will be between 10% and 20% lower than that of the previous year”.
“In a particularly uncertain environment, the Group will maintain a strategy focused on the preservation of the value of its brands, supported by the exceptional quality of its products and reactivity of its teams. In the short term, the measures taken by public authorities to combat the Covid-19 pandemic have resulted in the closure of production sites and stores in several countries which will have an impact on the group’s results. This impact cannot be accurately calculated at this time without knowing the timing of a return to normal in these countries. »