LVMH’s fashion and leather goods division recorded a 14% drop in revenues to €4.6bn (£3.9bn) for the first quarter of 2020.
Across the business, revenue dropped 17% to €10.6bn (£9bn). The luxury group said the market environment has been “defined” by store closures in several regions across the world. However, there was “rapid growth” in online sales, across Louis Vuitton and Dior in particular.
The group’s manufacturing sites are preparing to reopen with new safety conditions for employees, after they closed in mid-March.
The group has also proposed a 30% reduction in the dividend to €4.80 (£4.11) per share.
Bernard Arnault, chief executive of LVMH, said: “In this unprecedented context, I would first like to thank our teams around the world, who have mobilised to help caregivers and participate in the collective effort by making hydroalcoholic gel for hand sanitisers, by facilitating the movement or by producing medical masks or even by sourcing critical equipment for hospitals. The health and safety of our employees and customers must remain our top priority. On a global scale, the Group works closely with the teams of each of our Maisons to provide them with all the resources they need.
“Thanks to everyone’s commitment and the strength of its brands, the LVMH group maintains good resilience in the face of this worldwide challenge.”
Earlier this year, LVMH unveiled a 15% increase in revenue for 2019, to €53.7bn (£45.9bn) in the year to 31 December 2019. Profit from recurring operations was €11.5bn (£9.85), up 15% on an “already high level in 2018”.
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