Fashion And Leather Goods Division Accounted For 86.5% Of LVMH 2020 Profit
Louis Vuitton shoes bags LVMH, the world’s largest luxury group, owns 75 primary brands across five divisions. Fashion and leather goods, the largest of these, accounted for a 46% share of Q1 to Q3 2020 revenue. During the period, the segment’s sales fell by 11% but started showing signs of recovery in Q3 2020, with a 12% uptick.
The performance of the fashion and leather goods division improved further in Q4 2020 when its revenue soared by 18% to €7.3 billion. For the full year 2020, the segment’s organic revenue only declined by 3%, compared to its 24% decline during H1 2020. It thus accounted for 86.5% of LVMH’s profits for the year 2020.
Overall, LVMH group sales in Q4 2020 totaled €14.3 billion, down by only 3% YoY. Asia contributed to its strong performance with a 21% increase in regional sales. In contrast, sales in Europe fell by 24%.
For the full-year 2020, LVMH’s revenue sank by 16% to €44.65 billion while its net profit fell by 34% to €4.7 billion. On the bright side, the group completed the acquisition of US jeweler Tiffany at $15.8 billion. In 2021, analysts project an increase of 18% in revenue and a 67% uptick in earnings for LVMH.
VR Niti Sejpal