LVMH’s first-half revenues fell by 27 percent to €18,393 million, with organic sales declining by 28 percent, due to the impact of the Covid-19 pandemic. The French luxury goods group has observed strong signs of an upturn in activity since June, but remains “very vigilant” for the rest of the year.

On an organic basis, second-quarter revenues were down by 38 percent year-on-year, driven lower by Japan and Europe, both down by 54 percent. Sales decreased by 39 percent in the U.S. and by 13 percent in Asia, excluding Japan, with China showing a strong rebound. For the whole first half, sales were also down in all regions, falling by 24 percent in the U.S., by 32 percent in Japan, by 24 percent in the rest of Asia and by 33 percent in Europe.

Group profit from recurring operations amounted to €1,671 million in the first half, down by 68 percent, and the operating margin stood at 9 percent. Net profit dropped by 84 percent to €522 million.

The fashion and leathergoods business suffered a 23 percent decline in revenues to €7,989 million in the first half, with organic growth a negative 24 percent. In the second quarter, the top line of the business was down by 37 percent on an organic basis. China recorded a very strong recovery in revenue in the quarter and there has been a gradual improvement since May in Europe and the United States. The division’s profit from recurring operations contracted by 46 percent to €1,769 million in the first half.