LVMH was the first luxury house to post its quarterly results, setting a precedent for other fashion businesses by showing sales have returned to pre-pandemic levels.
Sales increased 37 percent over 2019 and 52 percent over last year, when the world first faced lockdowns and store closures; first in Asia, then other markets including Europe and North America. To echo Bernstein analyst Luca Solca’s note to investors, LVMH “smashed expectations.”
Louis Vuitton shines
While Louis Vuitton and Dior have long buoyed the Paris-based conglomerate, they continued to remain highly visible and top of mind during the coronavirus. Investing heavily in marketing, e-commerce and customer service, both brands ensured they were ready when customers were able and willing to shop again.
According to Business of Fashion Louis Vuitton raised its prices on three occasions over the past year (March, April and January) a strategy to offset lower volumes.
In a note to investors Louis Vuitton said its Lady Dior Bag was a successful seller and Fendi’s first collection under newly appointed creative director Kim Jones gained lots of traction and media interest. Elsewhere it said sales at Celine, Marc Jacobs and Loewe were all solid. As with all divisions, LVMH does not break down sales of each individual label.