LVMH, the world’s biggest luxury group, on Monday, July 27, reported signs of a recovery in its businesses after a sharp downturn due to the coronavirus, including a strong rebound in key market China.
Sales for the French conglomerate fell 38% overall in the 2nd quarter of the year while net profit for the 6 months to June came in a staggering 84% lower as a result of the closure of many stores and manufacturing sites.
But the group still “showed exceptional resilience to the serious health crisis the world experienced in the 1st half of 2020,” chief executive officer Bernard Arnault said in a statement.
While there had been “encouraging signs” of recovery during the month of June, in the 2nd quarter as a whole revenue was down notably in Europe and the United States, he said.
“Asia, however, has seen a marked improvement in trends, with a strong rebound in China in particular,” Arnault said.
He said LVMH was “in an excellent position to take advantage of the recovery, which we hope will be confirmed in the 2nd half of the year.”
LVMH’s dozens of brands include Kenzo and Marc Jacobs fashion, Guerlain perfume, and Tag Heuer watches.
In a deal worth $16.2 billion at the end of last year, the French luxury giant agreed to buy legendary US brand Tiffany in the industry’s biggest takeover ever. – Rappler.com