In the midst of the ongoing Covid-19 pandemic, luxury conglomerate LVMH has released its financial results for the second quarter of 2020. The figures paint a picture of a general decline in sales, with promising signs of recovery and improvement in Asia, particularly in China. Unfortunately, sales in the United States and Europe have experienced significant drops.
LVMH’s sales for the second quarter of 2020 have seen a decline of 38% at constant exchange rates compared to the same period last year. For the first half of the year, sales were down by 28%, totaling 18.4 billion euros when taking into account comparable structure and exchange rates. Despite these challenges, Bernard Arnault, Chairman and CEO of LVMH, commended the company’s exceptional resilience in the face of the global health crisis.
Arnault also praised the agility of LVMH’s brands, as they quickly implemented cost-cutting measures and focused on accelerating online sales development. Although there have been signs of recovery since June, LVMH remains cautious about the remainder of the year. The company continues to maintain a long-term vision, a strong commitment to environmental protection, inclusion, and solidarity, and a dedication to progress and continuous improvement.
LVMH believes that it is well-positioned to take advantage of the expected recovery in the second half of the year and further solidify its position in the global luxury market in 2020. The conglomerate’s strong brands and responsive organization give them confidence in their ability to navigate these challenging times.
Unsurprisingly, the Watches and Jewelry segment was the most heavily impacted, with a decline in sales of 39%. The acquisition of Tiffany & Co is still pending, as LVMH awaits the final regulatory authorizations. The Perfumes and Cosmetics Division saw a decline of 29%, followed by Fashion and Leather Goods activities (-24%), and Wines and Spirits (-23%).
Useful links:
1. LVMH’s official press release on H1 2020 sales
2. Article on LVMH’s Q2 2020 results from Reuters
