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LVMH reports Q1 FY20 net revenue of €10.6 billion
17 Apr 20 2 min read
LVMH Moët Hennessy Louis Vuitton, a leading high-quality products group, has reported 15 per cent decline in its net revenue to €10.6 billion in first quarter (Q1) FY20 compared to €12.5 billion in same period prior year. The Fashion & Leather Goods business fell 9 per cent to €4.6 billion in the quarter compared to €5.1 billion in Q1 FY19.
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“In this unprecedented context, I would first like to thank our teams around the world, who have mobilised to help caregivers and participate in the collective effort by making hydroalcoholic gel for hand sanitisers, by facilitating the movement or by producing medical masks or even by sourcing critical equipment for hospitals. The health and safety of our employees and customers must remain our top priority,” Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said in a press release.
However, the Fashion & Leather Good’s online sales reported a rapid growth. Louis Vuitton and Christian Dior, in particular, continued to show creative momentum. The other brands continued the efforts to strengthen their resilience. LVHM stated that the manufacturing sites of the group's Maisons are preparing to reopen with maximum safety conditions for employees following the suspension of activity in mid-March.
Wines & Spirits business fell 13 per cent to €1.1 billion. Perfumes & Cosmetics business dropped 18 per cent to €1.3 billion. Watches & Jewellery business decreased 24% to €792 million. Selective retailing business was down 25 per cent to €2.6 billion.
The group reported that in the current situation it will maintain a strategy focused on preserving the value of its brands, based on the exceptional quality of its products and the responsiveness of its teams. The group will further strengthen its policy of controlling costs and being selective in its investments.
For the upcoming quarters, LVHM reported that the closures of the group's manufacturing sites and stores in most of the world’s countries in the first half will have an impact on the annual revenue and results. The group also suggested the impact cannot be precisely evaluated at this stage without knowing the timetable for a return to normal business in the different areas where the group operates.
Fibre2Fashion News Desk (JL)
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