Luxury conglomerate LVMH described its H1 performance as “resilient” in the face of the COVID-19 crisis despite profits at fashion & leather goods division being almost halved.
The French group, which owns Louis Vuitton, Dior, Fendi, Celine and Loewe among others, achieved total revenues of €18.4bn, down 27% with profits from recurring operations down 68% at €1.67bn.
In its fashion & leather goods division sales were down 24% to just under €8bn while profits were down 46% to €1.76bn. Fashion and wines & spirits were the only divisions to make a positive contribution to profits with watches & jewellery, perfumes & cosmetics and retail all making a loss.
Dior and Louis Vuitton were singled out as strong performance with the group saying the rest of its houses had been more impacted and were focusing on creativity in order to take advantage of a “gradual” return to normal.
Chairman & CEO Bernard Arnault said the company had shown “great resilience” in the midst of the crisis. “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.
“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,” said.