// LVMH sales recover in June as stores began to reopen
// LVMH had closed stores due to a government-mandated coronavirus lockdown
Louis Vuitton parent company LVMH has seen its sales pick up in June as stores reopened following a government-mandated lockdown.
Revenues came in at €7.8 billion (£7 billion) in the April to June period, down 38 per cent on a like-for-like basis.
The group increased its prices by five per cent at its flagship brand Louis Vuitton at the end of June — marking the third price increase since March.
- How will the luxury retail sector recover post-Covid?
- LVMH takes fresh look at Tiffany & Co acquisition
LVMH’s sales saw an improvement across Asia excluding Japan in the second quarter, with comparable revenue falling by 13 per cent versus a 32 per cent fall in the previous three months.
However, due to current travel restrictions which is affecting its duty free stores in airports, LVMH is not raking in revenues similar to 2019 levels.
LVMH had temporarily closed stores and halted its manufacturing process as the coronavirus pandemic spread from its key Chinese market to Europe.
Rivals such as Gucci owner Kering and France’s Hermes, which are yet to report an update, witnessed similar trends during the crisis as the luxury sector continued to be affected.
Prior to the pandemic, LVMH boss Bernard Arnault was in the middle of acquiring US jeweller Tiffany & Co for €14.7 billion (£13 billion), the biggest acquisition ever undertaken by LVMH.
At the time, Tiffany & Co said it expects the operation to be completed by mid-2020.