LVMH Books Lower 2020 Revenue, Net Profit; 4Q Sales Almost Flat
By Joshua Kirby
LVMH Moet Hennessy Louis Vuitton SE said Tuesday that its
revenue was only slightly down organically in the fourth quarter,
helped by further growth in the core Fashion-and-Leather-Goods
The French luxury-goods conglomerate's sales fell 3% on year in
the fourth quarter, taking full-year sales down 16% organically to
44.65 billion euros ($54.22 billion). Net profit plummeted 34% to
EUR4.70 billion from EUR7.17 billion the previous year. Analysts
had forecast net profit at EUR4.09 billion for the year, according
to a consensus of 15 estimates taken from FactSet.
In the F&LG division--which houses core brands Louis Vuitton
and Dior--sales rose 18% in the final quarter, having returned to
growth in the previous quarter. The division's revenue was down 3%
on year, whereas the group's other businesses all posted
double-digit drops. Selective Retailing posted the most dramatic
decline at 30% on year.
The results bear no impact from LVMH's acquisition of U.S.
jeweler Tiffany, since the takeover didn't close until the
beginning of 2021.
The world's largest luxury company said it would propose a
dividend of EUR6 a share at the annual general meeting scheduled
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(END) Dow Jones Newswires
January 26, 2021 12:27 ET (17:27 GMT)
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