Sales drop at Vuitton owner LVMH as coronavirus forces store closures

Sales drop at Vuitton owner LVMH as coronavirus forces store closures

Coronavirus outbreak in Cannes
A man wearing a protective face mask walks past a closed Louis Vuitton shop on the Croisette in Cannes during a lockdown. (Photo: REUTERS/Eric Gaillard)

PARIS: Louis Vuitton owner LVMH on Thursday (Apr 16) posted a 17 per cent drop in comparable sales in the first quarter due to the coronavirus outbreak, as lockdowns imposed in Europe and elsewhere forced it to close stores and production sites.

The world's biggest luxury goods group, which in late March had warned first-quarter sales would fall by between 10 and 20 per cent compared to a year ago, said revenues stood at 10.6 billion euros (US$11.48 billion) in the January to March period, down 15 per cent on a reported basis.

That marked a 17 per cent fall on a like-for-like basis, which strips out foreign exchanges swings and acquisitions.

LVMH, like rivals, has had to temporarily shut shops in key markets after the novel coronavirus first emerged in China late last year and later spread to Europe and the United States.

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Source: Reuters

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