( Paris, 28th July 2020 ) Due to the pandemic and the stagnation of international tourism, global boutiques were forced to close, and LVMH's revenue fell in the second quarter.
The group said in a statement on Monday that in the three months to June, endogenous revenue fell by 38%. Analysts had expected a decline of 42%. Sales of the fashion and leather goods division, including the top brand Louis Vuitton (LV), fell 37%. Analysts had expected a 38% decline.
In summary, in the first half of the year, the group's revenue fell by 27% to 18.39 billion US dollars, and its net profit plunged 84% to 522 million euros (about 2.6 billion ringgits).
In the first six months of this year, the group’s recurring business profit was 1.67 billion euros (approximately 8.3 billion ringgit). Analysts had previously estimated it was 2.32 billion euros.
The group said: “Despite encouraging signs of recovery in many of the group’s business activities in June, revenues in the United States and Europe declined significantly in the second quarter. Trends in Asia have improved significantly, especially in China. Rebound."
Before LVMH, Swiss Richemont Group and Burberry Group also reported second-quarter results. Analysts expect that the second quarter results will be the worst in the history of the industry.
**Info & Image are taken online
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