Some luxury brands are beating Q3 exceptions
Oct 23, 2020
Last week LVMH set a precedent for other luxury groups when it posted double digit growth for its fashion and accessories businesses in Q3. While in the first nine months organic revenue declined by 11 percent, due to global lockdown measures and store closures, the third quarter saw a strong rebound in activity, with a growth of 12 percent.
LVMH’s star brands, Christian Dior and Louis Vuitton, are seeing an unprecedented return to growth, leaving some luxury brands, like Gucci, behind.
Kering reported a positive third quarter with sales down just 1 percent after a colossal drop of 44 percent in the previous quarter. Gucci, however, did not rebound at the same rate as Dior and Louis Vuitton, with sales down 9 percent year on year. Bottega Veneta saw a rise of 21 percent, with a high demand for its leather accessories and ready to wear under new designer Daniel Lee.
Hermes saw growth in its jewellery and homeware divisions, the latter now available via its e-commerce channel. Sales jumped 42 percent but a lack of tourists and travelers affected its silk business of scarves and ties, which saw a drop of 21 percent.
Fourth quarter sales and the upcoming festive period will be the decisive factor how luxury brands complete this rollercoaster year. Great uncertainty remains in the current quarter, with brands like Moncler, who’s peak trading period is during cold weather months, in desperate need to drive sales during the last leg of the year.
Image via Bottega Veneta