Double-digit growth for LVMH’s Fashion & Leather Goods

Worldwide
Published:  27 January, 2021
Credit: Louis Vuitton

Revenue for the French luxury conglomerate amounted to €44.7 billion in 2020, down 17%, with the Fashion & Leather Goods category recording double-digit growth in the last two quarters.

In the fourth quarter of 2020, LVMH’s organic revenue declined 3% as the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. The Fashion & Leather Goods category in particular enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters. According to LVMH, Europe remains affected by the crisis, while the U.S. saw a good recovery and Asia grew strongly. Profit from recurring operations totalled €8.3 billion in 2020, down 28% over the year, but with a return to growth in the second half (+7%). Operating margin was 18.6% in 2020 and Group share of net profit amounted to €4.7 billion, down 34%.

In 2020, LVMH’s Fashion & Leather Goods business group recorded a 3% decrease in organic revenue in an environment marked by the closure of stores over a period of several months. According to the Group, the second half saw a noteworthy rebound in activity, with double-digit organic revenue growth in both quarters. China is said to have recorded a strong recovery in revenue beginning in April and the U.S. in July. “Louis Vuitton, always driven by exceptional dynamism and creativity, was able very quickly to transform and revitalise its customer relations with a high quality and efficient digital service”, said LVMH, adding that a new workshop opened at Vendôme in France. “Christian Dior demonstrated remarkable momentum and gained market share in all regions thanks to its exceptional creativity”, while the other fashion brands “showed solid resilience during the year, notably Loewe with the creations of J. W. Anderson, Celine with the creations of Hedi Slimane, Fendi and Marc Jacobs.”

Organic revenue for the Watches & Jewellery business group declined 23% in 2020, with a strong improvement in trends in the fourth quarter, which fell 2%. Profit from recurring operations was down 59%.