LVMH sales drop by 27 %
In an economic and social context weakened by the Covid-19 epidemic, the luxury giant unveils its results for the second quarter of 2020.
“Encouraging signs” of recovery, an improvement in Asia – particularly in China – but sales in “significant decline” in the United States and Europe. This is, in essence, the observation made by LVMH at the end of a second quarter of 2020 marked by sales down -38% on a like-for-like basis and currencies compared to the same period in 2019.
At the end of this first half, characterized by sales down -28% (at comparable structure and exchange rates) to 18.4 billion euros, “LVMH has shown exceptional resistance to the serious health crisis that the world is going through ”underlines Bernard Arnault, Chairman and CEO of LVMH, in a press release published at the end of the day. “Our Houses have shown remarkable agility in setting up measures to adapt their costs and accelerate the development of online sales, he observes. While vigorous signs of recovery in activity have been felt since then in June, we remain very vigilant for the rest of the year.
We remain driven by a long-term vision, a deep sense of responsibility and a strong commitment to protecting the environment and to inclusion and solidarity. In the current context, our sincere desire for commitment and continuous progress is even more evident. Thanks to the strength of its brands and the responsiveness of its organization, we are convinced 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, and to strengthen its lead in 2020 over the global luxury market. “
Between putting international flows on standby and closing physical outlets and production sites, the Watches and Jewelry segment was the most impacted with a -39% drop in sales. In this context, “the closing date of the proposed acquisition of Tiffany & Co depends on obtaining the latest regulatory authorizations” underlines the luxury giant. The Perfumes and Cosmetics Division posted a decline of -29%, followed by Fashion and Leather Goods (-24%) and Wines and Spirits (-23%).
