Fashion business boosts LVMH sales in Q3
LVMH Moët Hennessy Louis Vuitton recorded revenue of 30.3 billion euros in the first nine months of 2020, down 21 percent. On an organic basis, the company said in a statement, revenue declined 21 percent. The company added that revenue was down 7 percent in the third quarter to 12 billion euros on an organic basis, reflecting a marked improvement in trends compared to the first half, notably a return to growth in Cognac and Fashion & Leather Goods. LVMH witnessed encouraging signs of recovery in the third quarter in all regions, notably in the United States, and in Asia.
The Fashion & Leather Goods business group saw its organic revenue decline by 11 percent over the first nine months to 13.9 billion euros in an environment marked by the closure of stores for several months. The third quarter saw a strong rebound in activity, with double-digit organic revenue growth of 12 percent to 5,945 million euros.
Review of core businesses under LVMH
The Perfumes & Cosmetics business group recorded a 25 percent decline in organic revenue in the first nine to 3,674 million euros. The company said, online sales grew steadily in the third quarter and there was a significant improvement in trends in stores as well. In the third quarter, sales dropped 16 percent to 1,370 million euros. The Watches & Jewelry business group saw its organic revenue decline by 30 percent in the first nine months to 2,266 million euros. The rebound in China was observed in the third quarter but did not prevent the overall activity from dropping by 14 percent to 947 million euros in the period.
In Selective Retailing, organic revenue declined 31 percent to 7,176 million euros in the first nine months, while third quarter revenues were down 29 percent to 2,332 million euros. Sephora demonstrated good resilience during the health crisis, which led to the closure of almost all its stores globally for nearly two months. The company added that the brand gained market share in its main countries, thanks in particular to the strong growth of its online sales.