2020-07-30 14:02:51

LVMH Revenue Drops 27% in First Half of 2020

2020-07-30 14:02:51

LVMH Moët Hennessy Louis Vuitton recorded revenue of €18.4 billion ($21.7 billion) in the first half of 2020, down 27%.
 
“LVMH showed exceptional resilience to the serious health crisis the world experienced in the first half of 2020. Our Maisons have shown remarkable agility in implementing measures to adapt their costs and accelerate the growth of online sales. While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year. We continue to be driven by a long-term vision, a deep sense of responsibility and a strong commitment to environmental protection, inclusion and solidarity. In the current context, we remain even more firmly dedicated to showing continuous progress in these areas,” commented Bernard Arnault, chairman and CEO of LVMH.
 
“Thanks to the strength of our brands and the responsiveness of our organization, 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, and to strengthen our lead in the global luxury market in 2020,” Arnault continued.
 
Perfumes & Cosmetics
 
The company’s Perfumes & Cosmetics segment reported revenue of €1.985 billion ($2.34 billion) for the first half of 2020, a decline of 29% compared to the previous year.
 
According to LVMH, the big brands showed good resistance and high reactivity in a sector marked by the decline in makeup, the reduction in retailer stock levels and by a strong increase in parallel distribution channels in which the company’s brands did not wish to participate. Online sales grew steadily.
 
“The impact of the epidemic on revenue and annual results cannot be precisely assessed at this stage without knowing the timetable for the return to normal business in the different areas where the group operates,” the company stated. “After a second quarter severely affected by the crisis, we can hope that the recovery will materialize gradually in the second half.
Our strategy of focusing on the highest quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce LVMH’s global leadership position in luxury goods once again in 2020.”