Good resilience of LVMH in 2020

LVMH showed good resilience in 2020 in an economic environment severely disrupted by the serious health crisis that 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.

With an organic revenue decline of only 3% in the fourth quarter, the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. While Europe is still affected by the crisis, the United States saw a good recovery and Asia grew strongly.

Profit from recurring operations, which amounted to 8.3 billion euros in 2020, declined only 28% over the year due to a return to growth in the second half, which was up 7%. Operating margin reached 18.6% in 2020. Group share of net profit amounted to 4.7 billion euros, down 34%.

The Watches & Jewelry business group saw its organic revenue decline by 23% in 2020, with a strong improvement in trends in the fourth quarter, which fell only 2%. Profit from recurring operations was down 59%. Bvlgari was very responsive and quickly capitalised on the strong recovery in China. The Maison maintained a high pace of jewellery innovation with the successful launches of its Serpenti Viper, B.Zero1 Rock and Barocko collections. Chaumet inaugurated its new store at its historic address on Place Vendôme in Paris at the start of 2020 and strengthened its presence in China. In the watch sector, TAG Heuer celebrated its 160^th anniversary with several limited editions in the Carrera collection and launched the third generation of its smartwatch in New York. The year 2021 marks the entry into the Group of the prestigious American jeweller Tiffany.

The Wines & Spirits business group saw its organic revenue decline by 14% in 2020. Profit from recurring operations was down 20%. All Maisons showed great resilience and gained market share.

In 2020, the Fashion & Leather Goods business group recorded a decrease in organic revenue of only 3% in an environment marked by the closure of stores over a period of several months. The second half saw a noteworthy rebound in activity, with double-digit organic revenue growth in both quarters.

The Perfumes & Cosmetics business group recorded a 22% decline in organic revenue in 2020. Profit from recurring operations was down 88%.

The Selective Retailing business group saw organic revenue decline by 30% in 2020. Profit from recurring operations amounted to 203 million euros.

Driven by the agility of its teams and their entrepreneural spirit, along with its well diversified presence across its activities and the geographic areas in which it operates, LVMH enters 2021 with cautious confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.

At the Annual General Meeting of April 15, 2021, LVMH will propose a dividend of 6 euros per share.

February 04, 2021