Luxury goods conglomerate LVMH (Gucci, Bottega Veneta, and Louis Vuitton) has released its report for Q1, the first since Covid-19 upended the global economy and with it the luxury fashion industry.
The report reveals that LVMH’s recorded revenue of €10.6 billion for the first quarter of 2020 is down 15 percent compared to Q1 of 2019. This loss is attributed to the closure of physical stores and a suspension on international travel.
The report notes that within its fashion and luxury goods businesses, there was “a decline in organic revenue of 10 percent in the first quarter of 2020 in a market environment defined by store closures in several regions around the world.” The report does state, however, that online sales enjoyed rapid growth.
The report closes with intel that chairman and chief executive officer Bernard Arnault and other executive officers will “give up their remuneration for the months of April and May 2020 as well as all the variable remuneration relating to 2020.”
LVMH maintains that LVMH’s priority is “to ensure the safety of its employees and customers,” although there have been conflicting reports about the welfare of LVMH’s employees, following a decision to backtrack on requesting help from the state in France to support furloughed workers.
Check out the report in full over on LVMH.