LVMH's fashion and leather goods unit records double-digit sales growth in Q3
Luxury retailer LVMH posted double-digit sales growth in the third quarter for its largest business on Friday, with solid demand for Louis Vuitton and Dior products helping offset steep declines seen elsewhere as a result of Covid-19.
LVMH reported 12% year-on-year revenue growth for its fashion and leather goods division, hitting €5.9bn for the period - much better than the 1% decline predicted by analysts.
However, weak sales in its duty-free retail, cosmetics and watches and jewellery units still led to a 7% decline in overall revenues in the third quarter to €11.96bn. Year-to-date, LVMH’s revenues were 21% weaker on a comparable basis at €30.3bn.
LVMH said while there had been a "considerable improvement" during the third quarter of 2020, it still cautioned that ongoing uncertainty around the Covid-19 pandemic meant it would be cautious of both cost-cutting measures and further investments.
"The encouraging signs of recovery observed in June for several of the group's activities were confirmed in the third quarter in all regions, notably in the United States, and in Asia, which once again grew over the period," it said.
As of 0945 BST, LVMH shares were up 6.76% at €430.25 each.