RAPAPORT… LVMH expects its revenue for the first quarter to drop as the coronavirus outbreak has led to the closure of many of its stores.
“The measures taken by public authorities to combat the COVID-19 pandemic have resulted in the closure of production sites and stores in several countries, which will have an impact on the group’s results,” the luxury group said last week.
The company — the owner of Bulgari and Chaumet — is not sure of the total effect the shutdowns will have on sales, but said it could “reasonably expect” revenue to fall between 10% and 20% year on year in the three months ending March 31. LVMH won’t know the long-term impact on sales until it knows when business will return to normal in the affected countries, it added.
The luxury group will publish its consolidated revenue for the first quarter on April 16.
Image: A Bulgari store. (Willy Barton/Shutterstock)
LVMH 1Q Revenue Could Fall up to 20%
The Bottom Line
- LVMH expects first-quarter revenue to drop between 10% and 20% year over year.
- Store and production site closures across multiple countries have impacted sales.
- The company will report consolidated Q1 revenue on April 16 and awaits clarity on long-term effects.
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