What makes LVMH successful
Luxury group LVMH is feeling the upswing in fashion and leather products
Above all, the Louis Vuitton and Dior brands are said to have recovered. The reason could also be the Asian market.
The French luxury goods group LVMH with brands such as Moet Hennessy and Louis Vuitton saw bright spots in the business with fashion and leather as well as wine and spirits in the third quarter. Although the company still suffered a significant decline in sales, it did better than analysts expected. The industry has been particularly hard hit by the corona pandemic, particularly because tourism has collapsed.
Overall, sales fell by 7 percent on a comparable basis between July and the end of September compared to the previous year, as LVMH announced on Thursday evening in Paris. With fashion and leather products, the largest division, LVMH has already achieved a 12 percent increase in sales. In the case of wine and schnapps, the decline in sales was still 3 percent.
Louis Vuitton and Dior as cash cows
LVMH does not break down the plus in the area of fashion and leather products into individual brands, but stated that the cash cows Louis Vuitton and Dior have recovered strongly. The new "Since 1854" pattern and the Capucines bag are said to have been particularly successful at Louis Vuitton, and the Bobby Bag at Dior, which was advertised with a massive influencer campaign, as "Fashionista" reports.
The Chinese market could also have been a reason for the recovery. Overall, sales in Asia increased by 13 percent in the third quarter.
The corona pandemic was still very clear in the figures presented for the first nine months. LVMH's total sales slipped 21 percent to 30.3 billion euros. Even with the recent upturn, the decline in fashion and leather in this definition was still 12 percent. The French want to decide on an interim dividend by the end of the month. As is customary in France, LVMH only presents profit figures for the half-year and for the full financial year.
(APA / dpa / Red.)
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