THE WHAT? LVMH has reported its results for the first quarter of the current financial year. The luxury goods manufacturer saw revenue plunge 15 percent compared to the same period in 2019, for total sales of €10.6 billion.
THE DETAILS Fashion and Leather Goods was among the ‘best’ performing unit, dropping 9 percent thanks to a rapid growth in online, while sales of the Perfumes & Cosmetics division were down 19 percent, which LVMH attributed to a widespread reduction in inventory levels, and Selective Retailing plummeted 26 percent as Sephora shuttered stores in China, Europe and the US. The group noted, however, that in-store sales have picked up in China since early April.
“In this unprecedented context, I would first like to thank our teams around the world, who have mobilized to help caregivers and participate in the collective effort by making hydroalcoholic gel for hand sanitizers, by facilitating the movement or by producing medical masks or even by sourcing critical equipment for hospitals,” said Bernard Arnault, Chairman and Chief Executive Officer of LVMH. “The health and safety of our employees and customers must remain our top priority. On a global scale, the Group works closely with the teams of each of our Maisons to provide them with all the resources they need.
Thanks to everyone’s commitment and the strength of its brands, the LVMH group maintains good resilience in the face of this worldwide challenge. For several weeks, our teams have once again demonstrated that excellence, creativity and responsiveness will allow us not only to overcome this crisis but, above all, to emerge even stronger when it fades.”
THE WHY? Appetite for luxury goods has diminished as the crisis builds, with unemployment rising, several countries plunged into recession and many more close to the brink.