LVMH cheered by leathergoods’ “strong resilience” in 2020
Luxury group LVMH has reported full-year revenues of €44.6 billion for 2020, a decline of 17% year on year. Its profit on this figure was €8.3 billion, down by 28% compared to the year before.
Its leathergoods division performed well, recording revenues for the year of €21.2 billion and profits of €7.2 billion. These figures show declines of 4.8% and 2%, respectively, year on year. LVMH said this division of the group’s business had recorded double-digit growth in the third and fourth quarters of the year.
“China recorded a strong recovery in revenue from April onwards,” the group said, “and the United States from July. Brands’ strict cost management made it possible to limit the decline in profit from recurring operations to 2%.”
It went on to say that, in an environment marked by the closure of stores over a period of several months, the Louis Vuitton brand was able very quickly “to transform and revitalise its customer relations with a high-quality and efficient digital service”.
The brand’s commitment to high-quality craftsmanship and sustainability continues, the group said, in the form of “responsible creativity”. It opened a new workshop in Vendôme in France. Innovations Louis Vuitton unveiled in 2020 included the Pont 9 range of bags and a series of products labelled 1854, marking the year the brand was founded.
LVMH said Christian Dior had also demonstrated “remarkable momentum” and gained market share in all regions thanks to its “exceptional creativity”. It added: “The Lady Dior bag has become a global icon, the women’s collections of Maria Grazia Chiuri and the men’s runway shows of Kim Jones were a huge success.”
It said its other fashion brands had shown “solid resilience” during the year, notably Loewe with the creations of Jonathan Anderson, Celine with the creations of Hedi Slimane, Fendi and Marc Jacobs.
Image shows the Louis Vuitton Pont 9 bag.
