LVMH shows good resilience in the first half of 2020

> PDF version

LVMH Moët Hennessy Louis Vuitton, the world’s leading high-quality products group, recorded revenue of 18.4 billion euros in the first half of 2020, down 27%. On an organic* basis, revenue declined 28% compared to the same period in 2019. LVMH has proven its ability to be resilient in an economic environment severely disrupted by the serious health crisis that has led to the suspension of international travel and the closure of the Group’s stores and manufacturing sites in most countries over a period of several months. The Group’s priority has been and remains the safety of its employees and customers. The LVMH teams have demonstrated their strong commitment in dealing with this unprecedented situation while efforts to adapt to the current environment are actively underway in order to control costs and ensure a more selective investment policy.
In the second quarter, revenue was down 38% on an organic basis compared to the same period in 2019. Although there were encouraging signs of recovery in June across several of the Group’s activities, revenue was notably down in the United States and Europe during the quarter. Asia, however, has seen a marked improvement in trends, with a strong rebound in China in particular.

Profit from recurring operations amounted to 1 671 million euros for the first half of 2020 and operating margin stood at 9%. The profitability of Louis Vuitton, Christian Dior and Moët Hennessy remained at a high level. Group share of net profit amounted to 522 million euros.

Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH showed exceptional resilience to the serious health crisis the world experienced in the first half of 2020. Our Maisons have shown remarkable agility in implementing measures to adapt their costs and accelerate the growth of online sales. While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year. We continue to be driven by a long-term vision, a deep sense of responsibility and a strong commitment to environmental protection, inclusion and solidarity. In the current context, we remain even more firmly dedicated to showing continuous progress in these areas. Thanks to the strength of our brands and the responsiveness of our organization, we are confident that LVMH is in an excellent position to take advantage of the recovery, which we hope will be confirmed in the second half of the year, and to strengthen our lead in the global luxury market in 2020.»

Highlights of the first half of 2020 include:

  • Good resilience, notably from the major brands, in an economic environment disrupted by the global health crisis,
  • Absolute priority placed on the health and safety of our employees and customers,
  • Direct support in the fight against the epidemic,
  • Impact of the crisis on revenue worldwide, with however a strong recovery in the second quarter in China,
  • Significant acceleration in online sales, only partially offsetting the impact on revenue of several months of store closures,
  • Destocking by retailers for Perfumes & Cosmetics and Watches,
  • Suspension of international travel, severely penalizing travel retail and hotel activities.


Key figures

Euro millions First half 2019 First half 2020 % change
Revenue 25 082  18 393  — 27 %
Profit from recurring operations 5 295  1 671  — 68 %
Group share of net profit 3 268  522  — 84 %
Cash from operations before changes in working capital 7 399  4 421 — 40 %
Net cash from operating activities 4 189  850 — 80%
Net Financial Debt 8 684  8 230  — 5 %
Total equity 35 390  37 532  + 6%

by business group:

Euro millions First half 2019 First half 2020 % change
Reported Organic*
Wines & Spirits 2 486  1 985  — 20 %  — 23 %
Fashion & Leather Goods 10 425  7 989  — 23 %   — 24 %
Perfumes & Cosmetics 3 236  2 304  — 29 %  — 29 %
Watches & Jewelry 2 135  1 319  — 38 %  — 39 %
Selective Retailing 7 098  4 844  — 32 %  — 33 %
Other activities and eliminations (298)  (48)

* With comparable structure and constant exchange rates. The currency effect for the Group was +1% and the structural impact was almost zero.

Profit from recurring operations by business group:

Euro millions First half 2019 First half 2020 % change
Wines & Spirits 772  551  — 29 %
Fashion & Leather Goods 3 248  1 769  — 46 %
Perfumes & Cosmetics 387  (30)  —
Watches & Jewelry 357  (17)  —
Selective Retailing 714  (308)  —
Other activities and eliminations (183)  (294)


Wines & Spirits: good resilience in the United States and encouraging recovery in China

The Wines & Spirits business group saw its organic revenue decline by 23% in the first half of 2020. Profit from recurring operations was down 29%. Despite recent improvement, the decline in volumes was noticeable in the second quarter, particularly for the Champagne business. After a start to the year supported by advance orders from distributors, the United States showed good resilience in the second quarter thanks to Hennessy cognac, which saw a strong rebound in June in this market as well as in China. The Château d’Esclans and Château du Galoupet acquisitions, made in 2019, were integrated in the first half of the year, strengthening Moët Hennessy’s position in the growing market for high-end rosé wines.

Fashion & Leather Goods: remarkable resilience from Louis Vuitton and Christian Dior

The Fashion & Leather Goods business group recorded a 24% decline in organic revenue in the first half of 2020 in an environment marked by the closure of stores in many regions across the world. China recorded a very strong recovery in revenue in the second quarter and there has been a gradual improvement since May in Europe and the United States. The brands’ strict cost management made it possible to limit the decline in profit from recurring operations to 46%. Louis Vuitton illustrated its creative force more than ever through its many new products. The Maison is strengthening its ties with its customers through several digital initiatives and maintained its profitability at an exceptional level. Christian Dior, which showed remarkable resistance, has just inaugurated a new boutique on rue Saint-Honoré in Paris. New collections were unveiled online through a portrait by a Ghanaian artist who inspired the Men’s Spring-Summer 2021 collection, and a Cruise 2021 show behind closed doors in Lecce, Italy, showcasing the ancestral know-how of local artisans and artists. The other fashion brands, which have been more impacted, continue to strengthen their creativity in order to take advantage of the gradual return to normal.

Perfumes & Cosmetics: pursuing innovation and rapid growth in online sales

The Perfumes & Cosmetics business group recorded a 29% decline in organic revenue in the first half of 2020. Profit from recurring operations amounted to (30) million euros. The big brands showed good resistance and high reactivity in a sector marked by the decline in makeup, the reduction in retailer stock levels and by a strong increase in parallel distribution channels in which our brands did not wish to participate. Online sales are growing steadily. Parfums Christian Dior maintained strong momentum for innovation with the very promising launches of Miss Dior Rose N’Roses and the new edition of Dior Homme, as well as the success of Capture Totale anti-aging skincare. Guerlain continued its rapid growth in skincare, thanks to Abeille Royale, which is celebrating its 10th anniversary, and Orchidée Impériale. The emblematic lines of Parfums Givenchy have been resilient. The Fresh skincare brand is enjoying strong momentum in China.

Watches & Jewelry: rebound in China and growth of e-commerce

The Watches & Jewelry business group saw its organic revenue decline by 39% in the first half of 2020. Profit from recurring operations came to (17) million euros. Confronted in January with the decline of the Chinese market, then with the closure of other markets from mid-March, Bvlgari quickly took advantage of the recovery in China in the second quarter. After the launch of the B.Zero1 Rock collection, the Maison unveiled a new line of Barocko fine jewelry through an augmented reality experience. After a year of renovation, Chaumet inaugurated its historic address on Place Vendôme in Paris and strengthened its presence in China. After a good start to the year, TAG Heuer and Hublot were impacted by the decline in orders from retailers. The new TAG Heuer smartwatch, which was one of the major innovations of the first half, has been a great success.

Selective Retailing: Sephora market share gains and strong impact of the suspension of international travel on DFS

In Selective Retailing, revenue declined 33% on an organic basis in the first half of 2020. Profit from recurring operations amounted to (308) million euros. Sephora has demonstrated good resistance during the health crisis, which led to the closure of almost all of its stores around the world for nearly two months. Sephora gained market share in its main countries, illustrating its inventiveness and the effectiveness of its omnichannel strategy. Online sales grew very strongly over the period. DFS saw a significant decline in its activity in most destinations due to the suspension of international travel. A series of cost reduction measures have been undertaken. Its digital strategy has strengthened the relationship with its customers, particularly in China.

Outlook 2020

In a very turbulent context, the Group will maintain a strategy focused on preserving the value of its brands, based on the exceptional quality of its products and the responsiveness of its teams. In the current situation, the Group will further strengthen its policy of controlling costs and being selective in its investments. The impact of the epidemic on revenue and annual results cannot be precisely assessed at this stage without knowing the timetable for the return to normal business in the different areas where the Group operates. After a second quarter severely affected by the crisis, we can hope that the recovery will materialize gradually in the second half.
Our strategy of focusing on the highest quality across all our activities, combined with the dynamism and unparalleled creativity of our teams, will enable us to reinforce LVMH’s global leadership position in luxury goods once again in 2020.

The closing date of the planned acquisition of Tiffany & Co depends on the receipt of the final regulatory approvals.

The decision to pay an interim dividend will be discussed by the Board of Directors in October and announced, as appropriate, at that time.

Regulated information related to this press release, the half-year results presentation and the half-year financial statement are available on our internet site

Limited review procedures have been carried out, the related report will be issued following the Board meeting.


Annex — Revenue by business group and by quarter

The condensed consolidated financial statements for the first half of 2020 are included in the PDF version of the press release.

Revenue first half 2020 (Euro millions)

2020 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Distribution Other activities & eliminations Total
First quarter  1 175  4 643  1 382  792  2 626  (22)  10 596
Second quarter  810  3 346  922  527  2 218  (26)  7 797

Revenue first half 2020 (organic growth compared to the first half of 

 2020 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Distribution Other activities & eliminations Total
First quarter  -14%  -10%  -19%  -26%  -26%  -17%
Second quarter  -33%  -37%  -40%  -52%  -38%  -38%


Revenue first half 2019 (Euro millions)

2019 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Distribution Other activities & eliminations Total
First quarter 1 349 5 111 1 687 1 046 3 510 (165) 12 538
Second quarter 1 137 5 314 1 549 1 089 3 588 (133) 12 544