The eco brief. LVMH has already regained the ground lost since the start of the crisis

The Louis Vuitton store on the Champs-Elysées in Paris. Illustrative photo. (ALEXIS SCIARD / MAXPPP)

First, a little reminder about these four letters: LVMH for Louis Vuitton (the bags) and Moët-Hennessy (the champagne). The French global luxury giant posted a turnover of 14 billion euros for the first three months of the year, up 30% compared to last year. In 2020, LVMH had experienced a serious pitch with the closure of stores and the freeze of international tourism and its activity had fallen by 16%.

The group benefited from the surge in sales of Louis Vuitton bags and Dior perfumes. The fashion and leather goods division jumped more than 50% between January and March. To which must be added the watches and jewelry branch, which has soared by 140%. LVMH owes this luxury paradox that mocks the crisis to its customers with comfortable incomes who want quality, French excellence envied around the world.

Customers that can be found in countries where the recovery is clearly beginning: the United States, but especially Asia. China is the first country to be affected by the pandemic and it is now the first to recover. A huge field of conquest for LVMH. On the other hand, it skates in Europe.

LVMH will take advantage of this recovery before the others to develop its innovation and investment strategy. A strategy which currently benefits its 160,000 employees worldwide and the 20,000 French artisans who are subcontractors. The group is in the process of recruiting 9,500 people and 400 apprenticeship positions will be filled this year. LVMH, whose capitalization has just passed 300 billion euros on the Paris stock exchange, is now the second recruiter in France behind SNCF.

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