LVMH expects this 2nd quarter to be hit “particularly hard” by Covid-19. But the luxury group maintains hope for the rest of the year thanks to some “fairly robust signs” from June. Forecasts in the medium-term are positive. That’s the scenario depicted by Bernard Arnault and LVMH’s executives during the latest general meeting held.
Fairly robust signs
The analysis made by the group’s management comes after a challenging 2nd quarter, specifically in Europe and the United States. LVMH had already seen a -15% revenue level during the first quarter, at current rates. “One can only hope for a gradual recovery during the second half of the year, and the signs of recovery in June in a number of our activities are fairly robust,” Arnault added. A statement that was somewhat softened by the CFO, Jean-Jacques Guiony’s words: “Even if it’s challenging to provide projections for the rest of the year – reported Fashion Network -, the effects of this totally exceptional situation will continue to last throughout the upcoming months”. LVMH provided to forecasts regarding its yearly performance, also because as stated by Mr. Arnault, “We do not know in particular when the virus will disappear, hopefully completely”.
Belloni’s statement
Antonio Belloni, group managing director of LVMH believes that the company maintains a positive outlook for the medium-term. “We view the future of luxury with optimism. Consumers’ habits will surely continue to evolve, their priorities, too, especially as the crisis plays the role of accelerator,” he said. Belloni was also asked about the Tiffany acquisition, for which he only said: “We believe that Tiffany is one of the most iconic jewelry brands. As such, it fully has its place in the LVMH portfolio.”
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