The French luxury group Louis Vuitton Moët Hennessy (LVMH) has had a lower turnover in the last quarter than a year earlier, but the damage caused by the coronacrisis is less than in the spring. Especially a revival in the sale of luxury bags and other fashion items limited the damage.
Wealthy model enthusiasts seem to have regained their purse after the relaxation of many lockdown measures. On a yearly basis, sales increased by 12% at LVMH’s fashion and leather goods division, including, for example, the Christian Dior and Givenchy brands alongside Louis Vuitton.
Total turnover fell by 7% in the third quarter to EUR 30.3 billion. In particular, LVMH’s shopping activities were poor. That business is dependent, among other things, on tax-free shops at airports, which suffer from greatly reduced passenger numbers at airports. Over the first nine months of 2020, yields are over one fifth lower than in 2019.
In its quarterly update LVMH did not provide any information on profit or loss. Nor did the group go into the conflict with Tiffany jewelry chain. LVMH announced last year that he wanted to buy the American branch agent, but pulled the plug on that deal in September. Since then, the two sides have been fighting each other in court.