LVMH Faces a 3% Financial Detour Downwards in Third Quarter Revenue – Not All Champagne and Luxuries!

“LVMH sees 3pc revenue dip in Q3”

“Despite the ongoing economic fallout caused by the COVID-19 pandemic, LVMH Moët Hennessy Louis Vuitton saw its revenue for the third quarter drop by only 3 percent to $32.9 billion,” claims a recent article. The ho-hum news about a minor revenue dip for one of the world’s largest luxury conglomerates probably won’t spark much sympathy in these trying times. Still, let’s put on a brave face and mumble something about resilience.

As the article diligently notes, the luxury sector has suffered significantly from the pandemic, but the mere 3% revenue drop indicates that LVMH remains in stubbornly good shape, despite hardship in the global economy. For those waiting for the high and mighty to slip on a banana peel, this may seem like cruel defiance of gravity.

In other insightful news, organic sales in LVMH’s fashion and leather goods division have apparently grown by 12 percent. Apparently, people holed up at home during global pandemic lockdowns decided that what they really needed was more leather luxury items. Because why not, right? A Louis Vuitton handbag pairs perfectly with your pyjamas.

The perfumes and cosmetics division, on the other hand, saw a 16 percent decline. This tells us that although people are perfectly happy to spend on premium fashion while stuck indoors, they are less inclined to smother themselves in expensive fragrance when the only audience is their cat and the houseplants.

And there’s more fun for luxury spectators. LVMH’s plans to acquire Tiffany hit a snag and ended up in court, with LVMH suing Tiffany, and Tiffany suing LVMH. It was like a luxury cage match in a court setting. In an unexpected plot twist, LVMH ended up backtracking, deciding to buy Tiffany after all.

Oh, and let’s not forget the “selective retailing” division, which saw a steep 29 percent decline. Seems, not so shockingly, that people weren’t exactly falling over themselves to hit high-end retail outlets amidst a once-in-a-century pandemic.

In summation, LVMH’s tangle with Tiffany and the rollercoaster ride that was 2020’s third quarter did little to truly upset the luxury brand’s pile of treasure. One can’t help but admire their resilience, in the same way one admires the persistence of a mosquito buzzing around one’s head.

Read the original article here:

https://www.luxurydaily.com/lvmh-sees-3pc-revenue-dip-in-q3/