Bernard Arnault Explained how the Pandemic Will Affect LVMH Sales in 2020
Chairman and CEO of the LVMH conglomerate, Bernard Arnault, hopes for a gradual recovery in revenue in the second half of 2020. He stated this at the annual meeting of shareholders, which this time took place online. According to Bernard Arnault, many regions are still quarantined, so it is now impossible to predict how the pandemic will affect annual sales. Nevertheless, analysts note that the pandemic hit sales in Europe and the United States. The executive director of the LVMH group, Antonio Belloni, confirmed the information that LVMH discussed the price of the deal to buy Tiffany & Co., however, declined to comment on the results of the last meeting with representatives of the jewelry brand. It was previously reported that the deal may not take place due to the consequences of coronavirus and protests in the United States.
To reduce costs during the lockdown, Bernard Arnault and other members of the company's board of directors refused to have salaries in April and May. LVMH also included in the board of directors the French economist Natacha Valla - she began her career at the European Central Bank as director of monetary policy and already worked at LVMH from 2016 to 2018.