The resiliency of LVMH during Covid-19 has become apparent after the company reported a sales decline of just 15 per cent for the first quarter of this year.
This achievement is even greater when taking into consideration that China, its most lucrative market, was shut down for most of the period.
“Thanks to everyone’s commitment and the strength of its brands, the LVMH group maintains good resilience in the face of this worldwide challenge,” said Bernard Arnault, Chairman and CEO.
Nevertheless, the company has trimmed its previously announced dividend and Arnault and other executives will work for free during April and May as the company works through the next stage of the coronavirus crisis.
“For several weeks, our teams have once again demonstrated that excellence, creativity and responsiveness will allow us not only to overcome this crisis but, above all, to emerge even stronger when it fades,” he said.
Group-wide revenue reached €10.6bn for the quarter, with all divisions in the group recording sales declines. Worst hit were the watches and jewellery business and selective retailing (including Sephora and DFS) which both fell by 26 per cent, largely linked to enforced store closures in Greater China.
