After incurring losses in the second quarter of 2020, LVMH’s profit has increased. Revenue from the sale of wines and spirits in the third quarter fell by only 3%, compared with a 33% decline in the second one. According to official figures, the loss is $ 3.9 billion now. And if you compare the income for the first nine months of 2020 and 2019, you can see that it decreased by 15% in this year.
LVMH associates the third-quarter results with an increase in the production of Hennessy cognac, and the emergence of greater consumer demand in the United States. Besides, the company also launched a high-quality rum called Eminente in the third quarter.
As previously announced, LVMH will pursue a strategy to preserve the value of its brands by continuing to invest in marketing and communications and relying on the exceptional quality of its products. These efforts are aimed at further strengthening our global market leadership during this challenging business time.
As part of this strategy, Hennessy, with the participation of architect Frank Gehry, created 150 unique bottles of XO cognac at a price of $19,130. This event was timed to coincide with the company’s 150th anniversary.