PARIS – LVMH Moët Hennessy Louis Vuitton mentioned revenues jumped 32 % within the first quarter, as sturdy gross sales in Asia and america compensated for weak point in Europe, the place some nations applied renewed lockdown measures throughout the interval.
Group gross sales have been up 30 % in natural phrases within the three months to March 31, versus an increase of three % within the fourth quarter of 2020, and in contrast with a 17 % drop throughout the identical interval final yr, when the coronavirus pandemic hit, closing shops and factories, and grounding worldwide journey.
Due to the exceptionally weak comparability base, LVMH additionally in contrast the information with 2019 in a bid to supply a greater indication of its actual efficiency. It discovered that group gross sales have been up 8 % on a like-for-like foundation versus the identical quarter two years in the past.
Revenues within the first quarter of 2021 totaled 13.9 billion euros, nicely above the 12.7 billion euros forecast by analysts, in accordance with a consensus estimate compiled by Bloomberg.
“In a context that is still turbulent, LVMH is well-equipped to construct upon the hoped-for restoration in 2021 and regain development momentum for all its companies,” LVMH mentioned in an announcement.
Natural gross sales in its key vogue and leather-based items division rose 52 % year-on-year, reflecting the resilience of star manufacturers Louis Vuitton and Dior. In contrast with 2019, the division’s revenues have been up 37 %, a determine the monetary neighborhood is prone to concentrate on as proof of the section’s power.
Analysts polled by Bloomberg had anticipated vogue and leather-based items to put up a gross sales improve of 30 % year-on-year.
After falling throughout the board final quarter, gross sales in different divisions confirmed indicators of restoration, apart from selective retailing, which incorporates Sephora and DFS, LVMH’s travel-retail enterprise.
The wines and spirits section noticed comparable revenues rise 36 % year-on-year, perfumes and cosmetics have been up 18 %, and watches and jewellery gained 35 %. Selective retailing reported a 5 % drop in revenues, after a 26 % lower within the prior quarter.
In contrast with the identical interval in 2019, wines and spirits have been up 17 % in natural phrases; perfumes and cosmetics down 4 %; watches and jewellery up 1 %, and selective retailing down a whopping 30 %.
The quarter marked the mixing for the primary time of Tiffany & Co., following its acquisition, which closed on Jan. 17. The U.S. jeweler noticed an “glorious” begin to the yr, in accordance with LVMH.
Reflecting investor confidence, the group’s market capitalization on Tuesday crossed the brink of 300 billion euros for the primary time, having tripled since 2017.
Gross sales of non-public luxurious items fell by 23 % in 2020, the sharpest drop on report, in accordance with consultancy Bain & Firm. The share of luxurious purchases made on-line practically doubled from 12 % in 2019 to 23 % in 2020, it mentioned.
For 2021, Bain forecasts development that ranges from 10 % to 12 %, or 17 % to 19 %, relying on macroeconomic circumstances, the evolution of COVID-19 and the velocity of return to journey globally, in addition to the resilience and confidence of native prospects.
LVMH is the primary main French luxurious group to report first-quarter gross sales. Kering is because of publish its outcomes on April 20, with Hermès Worldwide to comply with on April 22.
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