LVMH has announced that revenue in the first half of 2020 tumbled 27% to €18.4bn (£16.8bn) against the year prior.
The luxury group, which owns Bulgari and Chaumet, reported that revenue in its watches and jewellery division plummeted by 39% to €1.32bn (£1.2bn) in the period.
According to the group, Bulgari “took advantage” of the recovery in China in the second quarter, while Maison unveiled a new line of Barocko fine jewellery through an augmented reality experience.
In addition, Chaumet strengthened its presence in China, while TAG Heuer and Hublot were “impacted” by the decline in orders from retailers.
Despite encouraging signs of recovery in June across the group, revenue was “notably down” across the US and Europe in the wake of the pandemic. Nonetheless, Asia witnessed a “marked improvement” in trends alongside a strong rebound in China.
The group said it ultimately remained “resilient” despite the impact of Covid, which saw closures across its global stores and manufacturing sites.
The group confirmed that efforts to adapt to the uncertain environment are now “actively underway in order to control costs and ensure a more selective investment policy”.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH showed exceptional resilience to the serious health crisis the world experienced in the first half of 2020. Our Maisons have shown remarkable agility in implementing measures to adapt their costs and accelerate the growth of online sales.
“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.”
He added: “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 organization, 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.”