LVMH says it is well placed to take advantage of the recovery
Luxury group LVMH has reported revenues of €18.4 billion in the first half of 2020, a fall of 27% compared to the first six months of 2019.
The group said it felt it had proven its ability to be resilient “in an economic environment severely disrupted by the serious health crisis”. It said it had been affected by the suspension of international travel and the closure of the group’s stores and manufacturing sites in most countries over a period of several months.
It said that a “significant acceleration” in online sales had only partially offset these closures.
On announcing the figures, chief executive, Bernard Arnault, commented: “While we have observed strong signs of an upturn in activity since June, we remain vigilant. Thanks to the strength of our brands and the responsiveness of our organisation, we are confident that LVMH is in an excellent position to take advantage of the recovery, which we hope will be confirmed in the second half of the year.”
Revenues for the company’s leathergoods and fashion division for the six-month period were just under €8 billion, a decline of 23% year on year. It said its leathergoods and fashion brands had recorded “a very strong recovery” in China in the second quarter of the year and that there had been gradual improvement since May in Europe and the US.
It said its Louis Vuitton brand had illustrated “its creative force” through new products, while working to strengthen its ties with customers through digital initiatives.
It added that Christian Dior was another brand that had shown “remarkable resistance” and had even inaugurated a new boutique on Paris’s famous rue Saint-Honoré. “The other brands, which have been more impacted, continue to strengthen their creativity to take advantage of the gradual return to normal,” LVMH said.
Image shows part of the leather product offering in the Dior cruise collection for 2021, unveiled recently at an outdoor event in Lecce in Puglia, southern Italy.
