LVMH’s leather goods revenue up 12% in third quarter

Worldwide
Published:  19 October, 2020
Credit: Louis Vuitton

Overall, revenue for the French luxury conglomerate declined 7% in the third quarter of the year, on an organic basis, but the LVMH Fashion and Leather Goods division marked a significant improvement.

For the first nine months of 2020, LVMH recorded revenue of €30.3 billion, down 21%, with the Fashion and Leather Goods division recording an 11% organic revenue decline over the same period. For the third quarter, Group revenue was down 7% “reflecting a marked improvement in trends compared to the first half, notably a return to growth in Cognac and Fashion and Leather Goods”, according to LMMH, which said that “encouraging signs of recovery observed in June", notably in the U.S. and in Asia.

With a 12% organic revenue growth, the Fashion and Leather Goods division observed a strong rebound in activity in the third quarter. LVMH said that Louis Vuitton continued to display exceptional momentum and creativity, in all areas, from products to shows and customer events. The label also strengthened its production with the opening of a new workshop in France and “continues its commitment to high quality craftsmanship and sustainability with responsible creativity”, while Christian Dior “showed remarkable momentum”. The Group’s other fashion labels are said to have observed “a good improvement” in their activity in the third quarter, notably Fendi, Loewe and Celine.

Revenue for the Watches & Jewellery business group declined 30% in the first nine months of 2020, with a rebound in China observed in the third quarter “but did not prevent the overall activity from dropping by 14% in the period”, according to LVMH.