Shares in luxury goods giant LVMH fell this morning after the Louis Vuitton owner posted a slump in profit and sales in the first half of the year due to the coronavirus pandemic.
The French firm’s share price dipped more than four per cent after it reported a 27 per cent drop in revenue in the first six months of the year.
Profit from recurring operations was €1.67bn (£1.52bn), down 68 per cent from a year ago.
The company reported a 38 per cent drop in revenue to €7.8bn in the April to June period, at the height of global coronavirus lockdowns.
LVMH’s results dragged down the shares of other luxury firms. Kering dipped 0.83 per cent but Moncler shed 4.72 per cent.
Last week Moncler posted its first ever first-half operating loss after the coronavirus pandemic decimated sales.
LVMH sees ‘strong signs’ of uptick
LVMH chairman and chief executive Bernard Arnault said he hoped the company, which also owns fashion house Christian Dior, would recover in the second half of the year.
Arnault said: “While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year.
“We continue to be driven by a long-term vision, a deep sense of responsibility and a strong commitment to environmental protection, inclusion and solidarity.
“In the current context, we remain even more firmly dedicated to showing continuous progress in these areas.
“Thanks to the strength of our brands and the responsiveness of our organisation, we are confident that LVMH is in an excellent position to take advantage of the recovery, which we hope will be confirmed in the second half of the year, and to strengthen our lead in the global luxury market in 2020.”