LVMH Profit Plunged 27 Percent in the First Half of the Year
Moët Hennessy Louis Vuitton (LVMH) has taken a huge hit like many other companies in different industries due to the coronavirus pandemic.
Through a report focused on the first half of 2020, LVMH revealed a 27 percent dive in revenue despite money-saving decisions to cut down on store leases, hiring, and advertising. In total, LVMH had revenue of €18.4 billion (approximately P1 trillion) during the period.
According to LVMH chief financial officer Jean Jacques Giony, big brands in the group portfolio such as Louis Vuitton, Christian Dior, and Moët Hennessy proved to be resilient during the coronavirus outbreak. What were really hit hard were the duty-free stores and boutiques located in airports all over the world.
"LVMH showed exceptional resilience to the serious health crisis the world experienced in the first half of 2020," LVMH chairman and CEO Bernard Arnault said in a statement. "Our maisons have shown remarkable agility in implementing measures to adapt their costs and accelerate the growth of online sales. While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year."
An upturn has been observed in China and Japan which have recovered in recent months. Several luxury stores made headlines back in April for record-breaking earnings after reopening for the first time in months.
Even with low sales, Arnault says the group will continue to focus on a long-term responsibility of a commitment to "environmental protection, inclusion, and solidarity."