The downturn in travel retail has strongly impacted the fortunes of LVMH, the world’s largest luxury goods group.
The titan’s perfumes and cosmetics business has reported a decline of 25 per cent in worldwide sales to 3.674 billion euros (AUD$6.06 billion) for the first nine months of the year – down from 4.912 billion euros (AUD$8.1 billion) over the same period in 2019.
The 14 brands in the multinational’s beauty and fragrance portfolio include Benefit Cosmetics, Parfums Christian Dior, Givenchy, Guerlain, Fenty Beauty by Rihanna, Make Up For Ever, Acqua di Parma and Marc Jacobs Beauty.
The slump hit hardest in Q2, which coincided with strict lockdowns in major markets. Leading brands such as Parfums Christian Dior continued to launch new products, including a flanker of its top-selling J’Adore fragrance franchise – Infinissime EDP. While Guerlain posted growth in skincare through its Abeille Royale and Orchidee Imperiale ranges.
In a statement, the multinational noted: “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 is a significant improvement in trends in store as well.”
The consumer health division proved a winner for Johnson & Johnson (J&J) in Q3, counteracting a slump of 10.8 per cent in Q2.
Listerine and OGX haircare proved vital in achieving a rise in sales for the consumer health division of 3 per cent to US$3.5 billion.
The multinational’s overall sales for the quarter rose 1.7 per cent to US$21 billion.
Thibaut Mongon, executive president and worldwide chairman for consumer health at J&J, added: “We have seen a negative input from Covid-19 in categories such as skincare and makeup removers, while seeing increased demand for body wash, body lotions and premium haircare.”
J&J believes it has strong momentum as it enters 2021 and the consumer health brands are poised to grow competitively.