January 28, 2021
LVMH 2020 profit down by a third despite strong Q4; showing ‘good resilience’
THE WHAT? LVMH has announced a recorded revenue of 44.7 billion euros in 2020, down 17 percent, while organic revenue fell 16 percent year on year.
THE DETAILS However, the luxury consumer goods company reported ‘resilience’ in the face of the pandemic, with Q4 revenue declining just 3 percent despite ongoing global lockdowns.
According to a press release, ‘the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. Fashion & Leather Goods in particular, enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters. While Europe is still affected by the crisis, the United States saw a good recovery and Asia grew strongly.’
The perfume and cosmetics arm fell 15 percent on an organic basis YOY. LVMH’s shares continue to rise, up 20 percent from January 2020.
THE WHY? LVMH’s results highlight the ongoing demand for luxury in the wake of the GVC, with consumers seeking out authentic craftsmanship.
Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “Our Maisons have shown great agility and creative energy in continuing to bring to life our customers’ dreams through a unique digital experience thereby further strengthening their desirability. Our focus on dynamic innovation was accompanied by strong commitments to the environment, sustainability and inclusion.”
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