THE WHAT? LVMH says it has seen a significant improvement in trends in the third quarter of 2020 however, the owner of Louis Vuitton and Givenchy still experienced a 7 percent drop in revenue in Q3 versus the same period in 2019.
THE DETAILS Fashion & Leather Goods bucked the trend, rising 12 percent, while Wines & Spirits lost a modest 3 percent. For Perfumes & Cosmetics and Selective Retailing, however, it was a different story with revenue dropping 16 percent and 29 percent respectively.
There were signs of hope, however, with steady growth in online sales, growth in skin care for Guerlain and Dior and a ‘promising start’ for the newly launched Fenty Skin. Sephora, meanwhile, has gained market share in its main countries.
THE WHY? LVMH said that its major beauty brands are showing good resistance in a sector ‘marked by a fall in both make-up demand and purchases made by international travellers, partially offset by the development in skin care’. However, its selective retail arm will remain hampered by the suspension of international travel for the foreseeable, which has led to a significant decline in revenue for DFS.