French luxury manufacturer LVMH Moet Hennessy Louis Vuitton reported on Wednesday, January 29, about receiving record revenue for itself for the end of 2019, € 53.7 billion, which is 15% better than the figure for 2018. The net profit of LVMH was also record-breaking in 2019, having increased by 13% over the year – up to € 7.17 billion.
The French conglomerate managed to achieve growth of both indicators in all its divisions. The most noticeable growth was in the division of fashionable clothes, accessories and leather products. Revenues from this business grew over the year by 20%, and net profit – by 24%. At the same time, the luxury manufacturer achieved revenue growth in all key markets for itself, even in Asia, where the company faced a drop in demand in Hong Kong due to the ongoing large-scale anti-government demonstrations for more than half a year.
However, now the spread of the coronavirus is also threatening Chinese LVMH business. Speaking about its possible consequences for the LVMH business, the head of the conglomerate Bernard Arnault said that “it is too early to answer this question.” At the same time, he noted that if the virus negatively affects the March reporting, this will not be a disaster for the company. “A completely different story if it lasts two years,” Mr. Arnault concluded.
About how the epidemic affected the real sector of the Chinese economy, read the publication “b”.
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