LVMH sells more handbags in Asia

Marco Green
October 18, 2020

LVMH Moet Hennessy Louis Vuitton SE said Thursday that revenue declined organically in the third quarter compared with the same period of the previous year, but noted a return to growth in some areas following a hard first half affected by the coronavirus pandemic.

By the end of September this year, the Group's net sales have fallen by 21 percent compared to what it was at the same time last year. Net sales this year have been Euro 30.3 billion.

During the third quarter, the Group's net sales decreased by seven percent compared to the same period past year. Analysts had predicted a 10% decline.

"The update confirms our impression of a strong summer for luxury goods". Watches of Switzerland Group Plc, the United Kingdom -based watch and jewelry retailer, recently reported better-than-expected sales.

Net sales in this product category increased 12 percent in the third quarter compared to the same period a year ago.

The encouraging signs of recovery were observed in June for several of the group's activities were confirmed in the third quarter in all regions, notably in USA, and in Asia, which once again grew over the period.

In contrast, sales of perfumes and cosmetics, as well as watches and jewelery, have continued to decline significantly.

However, weak sales in its duty-free retail, cosmetics and watches and jewellery units still led to a 7% decline in overall revenues in the third quarter to €11.96bn.

LVMH abruptly announced last month that the French government requested it delay the deal due to trade issues with the U.S. The two luxury giants are now suing each other, with Tiffany saying LVMH's rationale for backing out is baseless and misleading and LVMH claiming the decision was driven by the government and Tiffany's own mismanagement.

Friday's LVMH results showcased the strength of its brands, which include Louis Vuitton, Moet & Chandon champagne and Givenchy, to selective consumers despite an uncertain economy.

The main owner of LVMH is the richest man in Europe Bernard Arnault.

Other reports by Click Lancashire

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