LVMH, the world’s leading luxury products group, recorded a revenue of 44.7 billion euros (54.1 billion U.S. dollars) in 2020, down by 17 percent year-on-year because of the COVID-19 health crisis, the group said Tuesday.
The health crisis led to the suspension of international travel and the closure of the group’s stores and manufacturing sites in most countries over a period of several months, said LVMH in a press release.
Nevertheless, LVMH “saw a significant improvement in trends in all its activities” in the fourth quarter last year thanks to strong growth in Asia, it said, noting that its organic revenue declined by only 3 percent in the quarter.
“Fashion & Leather Goods, in particular, enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters. While Europe is still affected by the crisis, the United States saw a good recovery and Asia grew strongly,” it added.
The major brands of the group showed good resilience, with Louis Vuitton and Christian Dior marking double-digit organic revenue growth over the last two quarters of 2020 and both iconic and new products at Louis Vuitton maintaining profitability at an exceptional level, it said.
Sharp acceleration in online sales partially offset the effect on revenue caused by the closure of stores, the group added.
For its Fashion & Leather Goods business, the group recorded a decrease in organic revenue of only 3 percent in the past year as the second half saw a noteworthy rebound in activity, with double-digit organic revenue growth in both quarters. China recorded a strong recovery in revenue beginning in April and the United States in July.
The Perfumes and Cosmetics brands also showed good resilience resulting from the growth of skincare and online sales, particularly in Asia. Watches & Jewelry business had a strong rebound in China in the second half of the year, according to the press release. (1 euro = 1.21 U.S. dollars)