The first half report of French fashion conglomerate LVMH is out and predictably it is disappointing.
The last four months, owing to pandemic onslaught, have killed the sales of every small and big retailer – with some going bankrupt and many on the verge of closing down.
The first half report clearly states that LVMH has clocked revenue of €18.4 billion, which is a 27 per cent slump from what it was in the first half of 2019.
The report also distinctly highlighted that in Q2, the revenue has gone down by as much as 38 per cent and if fashion and leather goods in particular are taken into consideration, the fall is 37 per cent.
Here it is important to note that fashion and leather goods constitute 60 per cent of LVMH’s profits.
Talking about fashion brands, what’s positive from the report is that LVMH’s fashion brands Christian Dior, Moët Hennessy and Louis Vuitton are going profitable.
Also, what’s notable is that while the US and Europe market have been disappointing for the Group, Asia has been lately good especially China.
Substantiating on the same, Jean-Jacques Guiony, CFO, LVMH, stated that business is doing well in China especially for Louis Vuitton and Dior. The CFO, however, added that Asia on the whole, excluding China, has been quite flat for its fashion and leather segment.
Notably, profits from recurring operation touched €1,671 million in the first half, which is a 68 per cent fall from what it was during the same period in 2019.
The Group believes that it will recover gradually in the second half and is not far from regaining its leadership position in luxury goods.
Founded in 1987, LVMH also owns fashion brands like Givenchy, Céline and Marc Jacobs, among many others. It generates revenue of €53.7 billion.