First quarter decline for LVMH

The group has proven its ability to be resilient in an economic environment disrupted by a serious health crisis that has led to the closure of stores and manufacturing sites in most countries in recent weeks, as well as the suspension of international travel. The Group’s priority is to ensure the safety of its employees and customers. The LVMH teams have demonstrated their strong commitment and agility in facing this unprecedented situation, and efforts to adapt to the current environment are actively underway in order to control costs and ensure a more selective investment policy. LVMH has also organized the business to support the collective efforts being undertaken to combat Covid-19. Numerous solidarity initiatives have been rolled out by the Group’s Maisons around the world to support health authorities and medical staff.

The Watches & Jewelry business group recorded a 26% drop in organic revenue in the first quarter of 2020. Bvlgari experienced a decline in its activity due to the closure of its stores, in Asia in particular. After a good start to the year, TAG Heuer and Hublot were affected by the reduction of orders by retailers. One of the major innovations of the quarter was the very successful launch of TAG Heuer’s new smart watch.

In Wines & Spirits, revenue was down 14% on an organic basis in the first quarter of 2020, -10% for the Fashion & Leather Goods business group, -19% for Perfumes & Cosmetics and -26% for Selective Retailing.

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. LVMH relies on the talent and motivation of its teams, the diversification of its businesses and the geographical diversity of its revenue to reinforce, once again in 2020, its global leadership position in high-quality goods.

The LVMH Board of Directors assessed the economic situation resulting from the Covid-19 pandemic and, in light of current events and governmental recommendations, decided to propose a 30% reduction in the dividend announced on January 28^th for Shareholders’ approval at the AGM on June 30^th, 2020. The dividend for 2019 will therefore be €4.80 per share.

In addition, the Board was informed of the decision taken by Bernard Arnault, as Chairman and Chief Executive Officer, and by each of the other Executive Board members to give up their remuneration for the months of April and May 2020 as well as all the variable remuneration relating to 2020. Finally, the Board members of the Company took the decision to reduce their attendance fees by 30% for 2020.

April 23, 2020