Here Are the Takeaways From LVMH's Q1 Report

“Down 15% compared to the same period in 2019.”

By
Fashion 
4,702 Hypes 3 Comments

LVMH has expectedly reported a decline in revenue this first quarter of 2020 as the coronavirus continues to affect spending around the world. In a press release, the Paris-based luxury conglomerate recorded a “revenue of 10.6 billion Euros for the first quarter of 2020, down 15% compared to the same period in 2019.”

How did this happen?
As a result of the unprecedented widespread of COVID-19, LVMH had to close many of its physical stores and manufacturing sites around the world. APAC, which was hit first, together with the heavy suspension of travel, was a large factor of this as well — duty-free stores “experienced a significant decline in activity” while its Sephora stores were closed in China for the majority of 2020, and in U.S. and Europe since mid-March. Brands like Bulgari, Givenchy, Celine, and Fendi that heavily rely on its China consumers saw the most decline in sales. At the same time, its Watches and Jewelry sector reported a 24 percent drop, while Perfumes and Cosmetics did slightly better at an 18 percent drop.

What measures have LVMH taken?
Chairman and CEO Bernard Arnault and other Executive Board members have decided “to give up their remuneration for the months of April and May 2020 as well as all the variable remuneration relating to 2020.” All board members will also have their attendance fees reduced by 30% for the rest of the year, and a similar cut in dividends. Business of Fashion further reports that “LVMH plans to reduce capital expenditures by 40 percent this year to offset the decline in sales.” Additionally, the revision of marketing budgets, postponement of projects to 2021, and a 25 percent cut in its airport retail business will see more savings for the group.

What does the future hold?
In a call with analysts, LVMH Chief Financial Officer Jean Jacques Guiony mentions that online revenue has significantly increased over this period, and spending in stores has gradually recovered in APAC since April, by up to 50 percent year-over-year in China. But as the future remains uncertain, the group will continue to cut costs all around and streamline its businesses.

For more fashion news, Ralph Lauren Corporate Foundation announces support for cancer patients amid pandemic.

Read Full Article

What to Read Next

Damien Hirst Answers 98 Fan Questions in "From That Psychiatrist's Couch" Interview
Arts

Damien Hirst Answers 98 Fan Questions in "From That Psychiatrist's Couch" Interview

Taking place on Instagram Live while the artist stays at home.

TOKYO SANDAL Delivers Rustic SS20 Leather Footwear Collection
Footwear

TOKYO SANDAL Delivers Rustic SS20 Leather Footwear Collection

Crafted with thick cowhide and Tochigi leather.

21 Savage and Summer Walker Come Together on New Track "Secret"
Music

21 Savage and Summer Walker Come Together on New Track "Secret"

Produced by Jermaine Dupri.


Own a Rare Slice of the NWA 5000 Meteorite for $250,000 USD
Tech

Own a Rare Slice of the NWA 5000 Meteorite for $250,000 USD

Considered “the most desirable lunar meteorite in the world.”

John Carroll Kirby Drops Dreamy "Wind" Music Video
Music

John Carroll Kirby Drops Dreamy "Wind" Music Video

Taken from his upcoming album, ‘My Garden.’

Ralph Lauren Corporate Foundation Announces Support For Cancer Patients Amid Pandemic
Fashion 

Ralph Lauren Corporate Foundation Announces Support For Cancer Patients Amid Pandemic

As well as providing 130,000 loungewear pieces to frontline medical workers.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.

Help Support Us

We need ads to keep the lights on and to continue providing free news to our readers. We’d appreciate your support by whitelisting HYPEBEAST on your ad blocker. That way you can keep reading all the great stories for free.

If you have already whitelisted us, simply refresh this page. To find out how to whitelist us, click the button below.

Back

Add Us to Whitelist

We appreciate your support in allowing HYPEBEAST ads. Most ad blockers have similar whitelisting steps and settings. If you need assistance, please contact us.

Adblock Plus

  1. Click on the red ABP icon in the upper right corner of your browser.
  2. Click “Enabled on this site” to disable ad blocking for the current site. In Firefox click “disable on HYPEBEAST”.
  3. Refresh the HYPEBEAST page that you were viewing.

Adblock

  1. Click the AdBlock hand icon.
  2. Click “Don’t run on pages on this domain”.
  3. A new “Don’t run AdBlock on…” dialog may be displayed in the middle of the screen.
  4. Move the “Site” slider to the right. After that, click “Exclude”.
  5. Refresh the HYPEBEAST page that you were viewing.

uBlock

  1. Click the uBlock icon.
  2. Click the large blue “power” button in the menu that appears to whitelist the current website.
  3. Reload the HYPEBEAST page that you were viewing.

Firefox Browser

Firefox Tracking Protection may activate our whitelist notice, which can be disabled temporarily for a browsing session by clicking the shield icon in the URL bar and following the instructions.

Disconnect

  1. Click the Disconnect icon.
  2. Click “Whitelist site”.
  3. Refresh the HYPEBEAST page that you were viewing.