LVMH showed good resilience against the pandemic crisis in 2020

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LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of 44.7 billion euros in 2020, down 17%. Organic revenue declined 16% compared to 2019. LVMH showed good resilience in 2020 in an economic environment severely disrupted by the serious health crisis that led to the suspension of international travel and the closure of the Group’s stores and manufacturing sites in most countries over a period of several months.

With an organic revenue decline of only 3% in the fourth quarter, the Group saw a significant improvement in trends in all its activities compared to the first nine months of 2020. Fashion & Leather Goods in particular, enjoyed a remarkable performance, with double-digit growth in both the third and fourth quarters. While Europe is still affected by the crisis, the United States saw a good recovery and Asia grew strongly.

Profit from recurring operations, which amounted to 8.3 billion euros in 2020, declined only 28% over the year due to a return to growth in the second half, which was up 7%. Operating margin reached 18.6% in 2020. Group share of net profit amounted to 4.7 billion euros, down 34%.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said: “LVMH showed remarkable resilience against the unprecedented health crisis the world experienced in 2020. Our priority has been to protect the health and safety of our employees and our clients and we have provided direct support in the fight against the pandemic. Our Maisons have shown great agility and creative energy in continuing to bring to life our customers’ dreams through a unique digital experience thereby further strengthening their desirability. Our focus on dynamic innovation was accompanied by strong commitments to the environment, sustainability and inclusion. We are starting 2021 with the pleasure of welcoming the iconic jewelry Maison Tiffany and its teams to our Group. In a context that remains uncertain, even with the hope of vaccination giving us a glimpse of an end to the pandemic, we are confident that LVMH is in an excellent position to build upon the recovery for which the world wishes in 2021 and to further strengthen our lead in the global luxury market.”

Key highlights from 2020 include:

  • Highest priority given to the health and safety of our employees and our customers,
  • Direct support in the fight against the pandemic,
  • Good resilience, notably from the major brands, in an economic environment disrupted by the health crisis,
  • Impact of the crisis on revenue trends around the world, with however, a second half marked by a strong recovery in Asia, which saw double-digit growth, and a significant improvement in trends in the United States and Japan,
  • Double-digit organic revenue growth at Louis Vuitton and Christian Dior over the last two quarters of 2020,
  • Success of both iconic and new products at Louis Vuitton, whose profitability remains at an exceptional level,
  • Remarkable resilience of Cognac,
  • Sharp acceleration in online sales, partially offsetting the effect on revenue caused by the closure of the Group’s stores for several months,
  • Suspension of international travel, severely penalizing hotel and travel retail activities,
  • Operating free cash flow equivalent to that of 2019,
  • The completion of the agreement with the iconic American jewelry Maison Tiffany.

Key figures

Euro millions 2019 2020 % change
Revenue 53 670  44 651 – 17 %
Profit from recurring operations 11 504  8 305 – 28 %
Group share of net profit 7 171  4 702 – 34 %
Operating free cash flow 6 167  6 117 – 1 %
Net financial debt 6 206  4 241 – 32 %
Total equity 38 365  38 829 + 1 %

by business group:

Euro millions 2019 2020 Change 2020/2019 Change
Q4 2020 /
Q4 2019
Reported Organic*
Wines & Spirits 5 576  4 755 – 15 % – 14 % – 11%
Fashion & Leather Goods 22 237  21 207 – 5 % – 3 % + 18%
Perfumes & Cosmetics 6 835  5 248 – 23 % – 22 % – 15%
Watches & Jewelry 4 405  3 356 – 24 % – 23 % – 2%
Selective Retailing 14 791  10 155 – 31 % – 30 % – 26%
Other activities and eliminations (174)  (70)

* With comparable structure and constant exchange rates. For 2020, the currency effect was -1% and the structural impact was almost zero. For the fourth quarter of 2020, the currency effect was -4% and the structural impact was almost zero.

Profit from recurring operations by business group:

Euro millions 2019 2020 % change
Wines & Spirits 1 729  1 388 – 20 %
Fashion & Leather Goods 7 344  7 188 – 2 %
Perfumes & Cosmetics 683  80 – 88 %
Watches & Jewelry 736  302 – 59 %
Selective Retailing 1 395  (203)
Other activities and eliminations (383)  (450)


Wines & Spirits: strong recovery in the United States in the second half of the year and improvement in trends in China

The Wines & Spirits business group saw its organic revenue decline by 14% in 2020. Profit from recurring operations was down 20%. All Maisons showed great resilience and gained market share. After a significant drop in volumes in the second quarter, the Champagne business experienced improved trends in the second half, particularly in the United States. Beginning in June, Hennessy cognac recorded a strong recovery, driven notably by demand in the United States. 2020 saw the integration of the 2019 acquisitions Château d’Esclans and Château du Galoupet for the first time over a full year, establishing a strong position for Moët Hennessy in the growing market for high-end rosé wines. A new high-end rum, Eminente launched in the third quarter.

Fashion & Leather Goods: remarkable resilience

In 2020, the Fashion & Leather Goods, business group recorded a decrease in organic revenue of only 3% in an environment marked by the closure of stores over a period of several months. The second half saw a noteworthy rebound in activity, with double-digit organic revenue growth in both quarters. China recorded a strong recovery in revenue beginning in April and the United States in July. The brands’ strict cost management made it possible to limit the decline in profit from recurring operations to 2%. Louis Vuitton, always driven by exceptional dynamism and creativity, was able very quickly to transform and revitalize its customer relations with a high quality and efficient digital service. Many innovations were unveiled throughout the year, such as the Pont 9 range and the 1854 canvas. The Maison’s commitment to high quality craftsmanship and sustainability continues in the form of responsible creativity. A new workshop opened at Vendôme in France. Christian Dior demonstrated remarkable momentum and gained market share in all regions thanks to its exceptional creativity. The Lady Dior bag has become a global icon, the women’s collections of Maria Grazia Chiuri and the men’s runway shows of Kim Jones were a huge success. The other fashion brands showed solid resilience during the year, notably Loewe with the creations of J. W. Anderson, Celine with the creations of Hedi Slimane, Fendi and Marc Jacobs.

Perfumes & Cosmetics: continuous innovation and rapid growth in online sales

The Perfumes & Cosmetics business group recorded a 22% decline in organic revenue in 2020. Profit from recurring operations was down 88%. In a sector suffering from the decline in international traveller spend and makeup, LVMH’s major brands chose to be selective in their distribution and, unlike certain competitors, limited promotions and refused to sell indirectly to the Chinese parallel market, which presents major risks to the medium term desirability for brands that follow that route. The Perfumes and Cosmetics brands are showing good resilience resulting from the growth of skincare and online sales, particularly in Asia. Christian Dior saw a gradual improvement in the second half of the year, underpinned by the success of its new products Miss Dior Roses N’Roses and J’adore Infinissime in perfume, and Rouge Dior in makeup. Guerlain benefited from the remarkably dynamic skincare market, with the continued success of Abeille Royale and Orchidée Impériale. The new skincare brand Fenty Skin, developed by Rihanna, is off to a very promising start.

Watches & Jewelry: strong rebound in China in the second half of the year

The Watches & Jewelry business group saw its organic revenue decline by 23% in 2020, with a strong improvement in trends in the fourth quarter, which fell only 2%. Profit from recurring operations was down 59%. Bvlgari was very responsive and quickly capitalized on the strong recovery in China. The Maison maintained a high pace of jewelry innovation with the successful launches of its Serpenti Viper, B.Zero1 Rock and Barocko collections. Chaumet inaugurated its new store at its historic address on Place Vendôme in Paris at the start of 2020 and strengthened its presence in China. In the watch sector, TAG Heuer celebrated its 160th anniversary with several limited editions in the Carrera collection and launched the third generation of its smartwatch in New York. The year 2021 marks the welcome to the Group of the prestigious American jeweler Tiffany.

Selective retailing: good resilience at Sephora and strong impact of the suspension of international travel on DFS

The Selective Retailing business group saw organic revenue decline by 30% in 2020. Profit from recurring operations amounted to (203) million euros. Sephora demonstrated good resilience during the health crisis, which, nonetheless, lead to the closure of most of its stores for several months. The commitment and agility of its teams have enabled an acceleration of online sales, which reached historic levels in all markets, and the development of services such as Click & Collect and Live Shopping. Sephora has also strengthened its offering with new skincare and hair products. A new partnership has been signed with the American retailer Kohl’s, whose stores are expected to accommodate 200 beauty spaces dedicated to Sephora in 2021. DFS saw a significant decline in its activity in most destinations due to the total suspension of international travel. While Hong Kong continues to feel the impact of the pandemic strongly, Macau saw improved trends in the latter part of the year. New services are being developed for its local customers and online sales have strengthened.

Cautious confidence for 2021

In a very turbulent context, LVMH is well-equipped to build upon the hoped-for recovery in 2021 and regain growth momentum for all its businesses. The Group will continue to pursue its strategy focused on developing its brands by building on strong innovation and investments as well as a constant quest for quality in their products and their distribution.

Driven by the agility of its teams, their entrepreneurial spirit and its well diversified presence across its activities and the geographic areas in which it operates, LVMH enters 2021 with cautious confidence and once again, sets an objective of reinforcing its global leadership position in luxury goods.

Dividend 2020

At the Annual General Meeting of April 15, 2021, LVMH will propose a dividend of 6 euros per share. An interim dividend of 2 euros per share was paid on December 3 of last year. The balance of 4 euros will be paid on April 22, 2021.

The Board of Directors met on January 26th to approve the financial statements for 2020. Audit procedures have been carried out and the audit report is being issued.
The regulated information related to this press release as well as the presentation of annual results and the “Financial documents” report are available on the website


Condensed consolidated accounts for 2020 are included in the PDF version of the press release.

LVMH – Revenue by business group and by quarter

2020 Revenue (Euro millions)

2020 Wines  & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective retailing Other Activities and eliminations Total
First Quarter 1 175 4 643 1 382 792 2 626 (22) 10 596
Second Quarter 810 3 346 922 527 2 218 (26) 7 797
Total First Half 1 985 7 989 2 304 1 319 4 844 (48) 18 393
Third Quarter 1 364 5 945 1 370 947 2 332 (3) 11 955
Nine months 3 349 13 934 3 674 2 266 7 176 (51) 30 348
Fourth Quarter  1 406  7 273  1 574  1 090  2 979  (19)  14 303

2020 Revenue (Organic change versus same period of 2019)

2020 Wines & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective retailing Other Activities and eliminations Total
First Quarter -14%  -10%  -19%  -26%  -26%  -17%
Second Quarter  -33%  -37%  -40%  -52%  -38%  -38%
Total First Half  -23%  -24%  -29%  -39%  -33%  -28%
Third Quarter  -3%  +12%  -16%  -14%  -29%  -7%
Nine months  -15%  -11%  -25%  -30%  -31%  -21%
Fourth Quarter  -11%  +18%  -15%  -2%  -26%  -3%

2019 Revenue (Euro millions)

2019 Wines  & Spirits Fashion & Leather Goods Perfumes & Cosmetics Watches & Jewelry Selective Retailing Other Activities and Eliminations Total
First Quarter 1 349 5 111 1 687 1 046 3 510 (165) 12 538
Second Quarter 1 137 5 314 1 549 1 089 3 588 (133) 12 544
Total First Half 2 486 10 425 3 236 2 135 7 098 (298) 25 082
Third Quarter 1 433 5 448 1 676 1 126 3 457 176* 13 316
Nine months 3 919 15 873 4 912 3 261 10 555 (122) 38 398
Fourth Quarter  1 657  6 364  1 923  1 144  4 236  (52)  15 272

* Includes all Belmond revenue for the period April to September 2019.


Alternative performance measures

For the purposes of its financial communication, in addition to the accounting aggregates defined by IAS / IFRS, LVMH uses alternative performance measures established in accordance with the AMF’s position DOC-2015-12.

The table below lists these measures and the reference to their definition and their reconciliation with the aggregates defined by IAS / IFRS in published documents.

Measures Reference to published documents
Operating free cash flow FD (condensed consolidated financial statements, consolidated cash flow statement)
Net financial debt FD (Notes 1.22 and 19 of the appendix to the consolidated financial statements)
Gearing FD (Part 7, Comments on Consolidated Balance Sheet)
Organic growth FD (Part 1, Comments on the Consolidated Income Statement)

FD: Financial documents as of December 31, 2020