The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
French luxury goods group LVMH posted a three percent drop in comparable sales for the fourth quarter, in line with forecasts, as a boom in revenues at its big fashion brands like Louis Vuitton offset weak performance at its duty-free shops.
LVMH said fourth-quarter sales came in at 14.3 billion euros overall. For 2020 as a whole, when earnings were hit by the coronavirus pandemic that forced retailers to close shops, revenues reached 44.65 billion euros, falling 16 percent from a year earlier on a like-for-like basis, which strips out acquisitions and currency effects.
By Sarah White and Silvia Aloisi
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.
After growing the brand’s annual sales to nearly €2.5 billion, the star designer has been locked in a thorny contract negotiation with owner LVMH that could lead to his exit, sources say. BoF breaks down what Slimane brought to Celine and what his departure could mean.