Christian Dior: Significant improvement in trends in the third quarter of 2020 in Wines & Spirits and Fashion & Leather Goods...
15 Ottobre 2020 - 7:00PM
Christian Dior: Significant improvement in trends in the third
quarter of 2020 in Wines & Spirits and Fashion & Leather
Goods
Significant improvement in trends in the third quarter
of 2020 in Wines & Spirits and Fashion & Leather
Goods
Paris, October 15, 2020
The Christian Dior group
recorded revenue of 30.3 billion euros in the first nine months of
2020, down 21%. On an organic basis, revenue declined 21% compared
to the same period in 2019. Since the start of the year, the Group
has demonstrated good resilience in an economic environment
severely disrupted by the serious health crisis that led to the
suspension of international travel and the closure of its stores
and manufacturing sites in most countries over a period of several
months.
Revenue was down 7% in the third quarter on an
organic basis, reflecting a marked improvement in trends compared
to the first half, notably a return to growth in Cognac and Fashion
& Leather Goods. The encouraging signs of recovery observed in
June for several of the Group's activities were confirmed in the
third quarter in all regions, notably in the United States, and in
Asia, which once again grew over the period.
Revenue by business group:
In million euros |
9 months 2020 |
9 months 2019 |
Change 2020 /
2019First 9 months
Reported
Organic* |
Change Q3 2020 / Q3 2019 Organic* |
Wines & Spirits |
3 349 |
3 919 |
- 15 % |
- 15 % |
- 3 % |
Fashion & Leather Goods |
13 934 |
15 873 |
- 12 % |
- 11 % |
+ 12 % |
Perfumes & Cosmetics |
3 674 |
4 912 |
- 25 % |
- 25 % |
- 16 % |
Watches & Jewelry |
2 266 |
3 261 |
- 31 % |
- 30 % |
- 14 % |
Selective Retailing |
7 176 |
10 555 |
- 32 % |
- 31 % |
- 29 % |
Other activities & eliminations |
(51) |
(122) |
ns |
ns |
ns |
Total |
30 348 |
38 398 |
- 21 % |
- 21 % |
- 7% |
* with comparable structure and constant exchange rates. For the
first 9 months of 2020, the currency effect for the Group was -1%
and the structural impact was almost zero. For the third quarter of
2020, the currency effect for the Group was -3% and the structural
impact was almost zero.
The Wines & Spirits
business group saw its organic revenue decline by 15% over the
first nine months of 2020 and by 3% in the third quarter. After a
significant drop in volumes in the second quarter, the Champagne
business saw an improvement in the third quarter in all regions.
Hennessy cognac recorded a strong recovery in the third quarter,
driven by VS ranges in the context of exceptional stimulus support
for consumer demand in the United States. The Château d'Esclans and
Château du Galoupet acquisitions, made in 2019, were integrated in
2020 for the first time, establishing a strong position for Moët
Hennessy in the growing market for high-end rosé wines. A new
high-end rum, Eminente, launched in the third quarter.
The Fashion & Leather Goods
business group saw its organic revenue decline by 11% over the
first nine months of 2020 in an environment marked by the closure
of stores for several months. The third quarter saw a strong
rebound in activity, with double-digit organic revenue growth.
Louis Vuitton continued to display exceptional momentum and
creativity, in all areas, from products to shows and customer
events. During Fashion Week, the new collections were presented in
an original format in the legendary renovated La Samaritaine
building in Paris, as well as in Shanghai and Tokyo. The many
highlights of the quarter included the Jacquard Since 1854 canvas,
inspired by the Maison’s heritage, the iconic Capucines bag,
reinterpreted by six great contemporary artists and the LV Volt
jewelry collection. In addition, Louis Vuitton once again
strengthened its production with the opening of a new workshop in
France and continues its commitment to high quality craftsmanship
and sustainability with responsible creativity. Christian Dior
showed remarkable momentum. The many new products, such as the Dior
Bobby bag and the knitted Bar jacket, were very well received.
Following its success in Paris and London, the Christian Dior,
Designer of Dreams exhibition opened in Shanghai. The other fashion
brands also saw a good improvement in their activity in the third
quarter, notably Fendi, Loewe and Celine.
The Perfumes & Cosmetics
business group recorded a 25% decline in organic revenue in the
first nine months of 2020. The major brands are showing good
resistance in a sector marked by a fall in both makeup demand and
purchases made by international travellers, partially offset by the
development in skincare. Online sales grew steadily in the third
quarter and there was a significant improvement in trends in stores
as well. Parfums Christian Dior launched its new fragrance J’adore
Eau de Parfum Infinissime and continues to develop Prestige and
Capture skincare products. Guerlain recorded remarkable growth in
skincare with the continued successes of Abeille Royale and
Orchidée Impériale. The new skincare brand Fenty Skin, developed by
Rihanna, is off to a very promising start.
The Watches & Jewelry
business group saw its organic revenue decline by 30% in the first
nine months of 2020. The rebound in China was observed in the third
quarter but did not prevent the overall activity from dropping by
14% in the period. Bvlgari unveiled a new line of Barocko fine
jewelry. Its latest watch models, presented at the Geneva Watch
Days, received an excellent reception from distributors. Chaumet
launched its new Perspectives fine jewelry collection exploring the
theme of architecture. In the watch sector, TAG Heuer celebrated
its 160th anniversary with new models from the Carrera line. After
the launch of its new Special Golf smartwatch, the Maison became
the Official Partner of the Porsche Golf Cup France.
In Selective Retailing, organic
revenue declined 31% in the first nine months of 2020. Sephora
demonstrated good resilience during the health crisis which led to
the closure of almost all its stores globally for nearly two
months. Revenue improved in the third quarter. Sephora gained
market share in its main countries, thanks in particular to the
strong growth of its online sales. Supported by an innovative and
varied offer, momentum within skincare products was strong. DFS saw
a significant decline in its activity in most destinations as a
result of the suspension of international travel, which is showing
no signs of improving.
OUTLOOK
In a very turbulent context, marked by
continuing economic and health uncertainties, the Christian Dior
group will continue to exercise caution, strengthen its cost
controls and selectivity in its investments. The Group will
maintain a strategy focused on preserving the value of its brands,
by continuing its marketing and communication investments and
relying on the exceptional quality of its products and the
reactivity of its organisation. The Group will rely on the power of
its brands and the talent of its teams to further extend its global
leadership in the luxury market in 2020.
The decision to pay an interim dividend will be
discussed by the Board of Directors before the end of the month and
announced thereafter.
LVMH filed its countersuit against Tiffany with
the Delaware Chancery Court on September 28. To date, nine of the
ten required regulatory authorisations have already been obtained
and LVMH expects to receive approval from the European Commission
by the end of October. The trial is scheduled for January 5,
2021.
Aside from the items mentioned in this press release, there was
no event or change during the quarter and as of today that could
significantly impact the Group's financial structure.Regulated
information related to this press release and the presentation are
available on www.dior-finance.com.
ANNEX
Christian Dior group – Revenue by business group and by
quarter
2020 Revenue (Euro millions) |
|
FY 2020 |
Wines & Spirits |
Fashion &Leather Goods |
Perfumes &Cosmetics |
Watches &Jewelry |
SelectiveRetailing |
Other activities& eliminations |
Total |
First Quarter |
1
175 |
4
643 |
1
382 |
792 |
2
626 |
(22) |
10 596 |
Second
Quarter |
810 |
3 346 |
922 |
527 |
2 218 |
(26) |
7 797 |
Total First Half |
1 985 |
7 989 |
2 304 |
1 319 |
4 844 |
(48) |
18 393 |
Third
Quarter |
1 364 |
5 945 |
1 370 |
947 |
2 332 |
(3) |
11 955 |
Nine Months |
3 349 |
13 934 |
3 674 |
2 266 |
7 176 |
(51) |
30 348 |
2020 Revenue (organic growth versus the same period of
2019) |
|
FY 2020 |
Wines & Spirit |
Fashion &Leather Goods |
Perfumes &Cosmetics |
Watches &Jewelry |
SelectiveRetailing |
Other activities& eliminations |
Total |
First Quarter |
-14% |
-10% |
-19% |
-26% |
-26% |
- |
-17% |
Second
Quarter |
-33% |
-37% |
-40% |
-52% |
-38% |
- |
-38% |
Total First Half |
-23% |
-24% |
-29% |
-39% |
-33% |
- |
-28% |
Third
Quarter |
-3% |
+12% |
-16% |
-14% |
-29% |
- |
-7% |
Nine Months |
-15% |
-11% |
-25% |
-30% |
-31% |
- |
-21% |
2019 Revenue (Euro millions) |
|
FY 2019 |
Wines & Spirit |
Fashion &Leather Goods |
Perfumes &Cosmetics |
Watches &Jewelry |
SelectiveRetailing |
Other activities& eliminations |
Total |
First Quarter |
1
349 |
5
111 |
1
687 |
1
046 |
3
510 |
(165) |
12 538 |
Second
Quarter |
1 137 |
5 314 |
1 549 |
1 089 |
3 588 |
(133) |
12 544 |
Total First Half |
2 486 |
10 425 |
3 236 |
2 135 |
7 098 |
(298) |
25 082 |
Third
Quarter |
1 433 |
5 448 |
1 676 |
1 126 |
3 457 |
176* |
13 316 |
Nine Months |
3 919 |
15 873 |
4 912 |
3 261 |
10 555 |
(122) |
38 398 |
* Includes all Belmond revenues for the period April to
September 2019.
This document is a free translation
into English of the original French financial release dated October
15, 2020.It is not a binding document. In the event of a conflict
in interpretation, reference should be made to the French version,
which is the authentic text.
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