In the final quarter of 2020, demand in the main fashion and leather goods division picked up.
Business at the French luxury goods group LVMH (Moët Hennessy – Louis Vuitton) is gradually recovering from the corona doldrums. In the final quarter of 2020, as in the previous quarter, demand in the main fashion and leather goods division picked up.
Asia and USA strong
The drivers of the recovery were Asia and the USA, while the European business remained crisis-hit, as the company announced on Tuesday evening.
Organically, i.e. adjusted for exchange rate effects as well as acquisitions and sales, consolidated revenues in the fourth quarter were three percent below the previous year's figure.
For the year as a whole, the Group's sales and profit remained even more behind the record year of 2019. In 2020, like the entire luxury industry, the manufacturer suffered from the restrictions in international tourism.
confidence
The French revenues shrank within twelve months to 44.7 billion euros, on a comparable basis that was a decline of 16 percent. Adjusted operating profit fell by 28 percent to 8.3 billion euros.
LVMH had a profit of 4.7 billion euros, a good third less than a year earlier. Industry experts had expected a better development at the sales level, but expected worse results. The management is “cautiously optimistic” for 2021 and is hoping for an acceleration in all business areas.
