Luxury travels at full sail towards the recovery. It has come to certify it the quarterly of Lvmh, the largest global giant in the sector, welcomed with applause by the Bag. Despite the opaque performance of the lists, all the European titles in the sector are celebrating record growth which has beaten analysts' expectations and which gives hope for an increasingly rosy future.
THE LVMH QUARTERLY
In detail, Lvmh closed the first three months of 2021 with revenues of 14 billion euros, up 32% (+30% on an organic basis) compared to the same period of 2020, when the crisis triggered by the Covid- 19 has begun to affect the global economy. Investors are therefore amazed not only by the double-digit growth achieved compared to last year but by the +8% achieved in the first quarter of 2019. What contributes to the result above all is the fashion & leather goods division, whose turnover rose by 52% compared to 2020 and by 37% compared to 2019.
The division's revenues also increased sharply Wines & Spirits, which recorded an increase of 9% on 2020 and 17% on 2019 driven by champagne sales (+22%) in the USA and Europe. In the first quarter of 2021, the division's performance perfumes and cosmetics it is up 12% on 2020, but compared to 2019 it still marks -4%. Area boom jewelry and watches which, driven byacquisition of Tiffany, sees revenue grow 138% over 2020 and 1% over 2019.
Minus sign, however, in the retail network, where organic revenues were down 11% in Q2021 2020 versus Q30 2019 and XNUMX% versus QXNUMX XNUMX.
From a geographical point of view, it is not surprising that they are driving the recovery Asia and North America, the main reference markets in the Fashion and Luxury sector where, thanks to vaccination campaigns, the economy is starting to run again. On the other hand, Europe is lagging behind, weighed down by the effects of the pandemic and the continuation of the closure of shops in various countries.
“In a context that remains turbulent – reads the note from the group led by Bernard Arnault – Lvmh is well equipped to build the desired recovery in 2021 and regain the growth momentum for all its activities”.
THE REACTION OF THE STOCK MARKET
The quarterly was published yesterday evening, with the markets closed. In today's session, April 14, the title lvmh gains more than 3 percent to 612,8, pushing the entire sector upwards. In Milan, shopping pays off Moncler (+ 1,8%), Salvatore Ferragamo (+ 3,7%), Tod’s (+ 3,78%) and Brunello Cucinelli (+0,5%). In Paris Kering salt of 1,5%, Hermès is up 1,36%, L'Oreal earn 0,4%. In Zurich Richemont scores +1,79%.
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