Surging Vuitton sales boost LVMH despite pandemic woes

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Recovering sales of handbags helped LVMH contain the fallout from the coronavirus crisis in the third quarter, as the world's biggest luxury goods group reported a smaller-than-expected drop in revenues.
Recovering sales of Louis Vuitton handbags helped LVMH contain the fallout from the coronavirus crisis in the third quarter, as the world's biggest luxury goods group reported a smaller-than-expected drop in revenues.

LVMH has like peers been hurt by the pandemic, and the French conglomerate has also hit the headlines as it seeks to walk away from its planned acquisition of U.S. jeweller Tiffany in the midst of the crisis.

But LVMH has proved more resilient than some of its smaller peers, despite travel restrictions and store closures that have affected the whole industry, and its shares are only down 3% since the beginning of the year.

On Thursday, LVMH said its overall comparable sales fell 7% in the third quarter, beating analysts' average forecast for a 12% fall, with revenues coming in just under 12 billion euros ($14 billion).

Its fashion and handbag division in particular set a high bar for rivals including Gucci-owner Kering, after sales swung back into positive territory and rose 12% like-for-like, which strips out acquisitions and…
Reuters
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