LVMH (PARIS:MC.PA -0.67%) has posted its yearly results for 2020, stating that it experienced “significant improvement” in the fourth quarter of the year with notable rebounds in fashion and leather goods. These two sectors recorded double-digit growth in Q3 and Q4.
The luxury products group reported an annual revenue of €44.7 billion EUR ($54.5 billion USD), representing a 17 percent decline from 2019; organic revenue declined 16 percent over the course of 2020 and only 3 percent in the fourth quarter. LVMH also reported its Asian markets performed strongly (seeing double-digit growth) and the U.S. recovered well, though Europe is still challenged by the COVID-19 pandemic. Other COVID-19 related trends include a steep increase in online sales and challenges to hotel and travel retail activities due to international travel restrictions,
LVMH also released some details about the performance of specific brands and subsidiaries. In the fashion realm, Louis Vuitton and Dior experienced double-digit organic revenue growth in Q3 and Q4 and Loewe, Celine, Fendi and Marc Jacobs showed “solid resilience” according to the release. In watches and jewelry, BVLGARI‘s response to China’s market recovery is highlighted as well as LVMH’s recent acquisition of Tiffany & Co., which proved quite fraught over the last year. The wine and sprits sector was bolstered by a strong recovery for Hennessy cognac, notably driven by demand in the U.S.
The statement did not include many details about the outlook for 2021, aside from “cautious confidence” and a determination to regain growth momentum across all its businesses.
Early this year, Business of Fashion confirmed LVMH would reshuffle roles at Tiffany & Co. with Anthony Ledru formally announced as its new CEO.