Luxury goods conglomerate LVMH has reported dwindling profits for the second quarter of 2020. The results come as no surprise as shuttered boutiques and global travel disruption continues to upend the industry.

According to a statement released by the company yesterday, revenue fell by 38 percent through June. That's a slight improvement on what analysts expected, which was a 42 percent drop.

LVMH's fashion and leather goods channel (including Louis Vuitton, Fendi, and Berluti) has reported a decline in sales of up to 37 percent — a one percent improvement of what analysts predicted.

Profits for the first half of 2020 were reported at €1.67 billion ($1.96 billion), significantly lower than the expected €2.32 billion. However, the company also reports a “significant acceleration in online sales, only partially offsetting the impact on revenue of several months of store closures.”

This bump may be a reflection of the fact that prices for Louis Vuitton's leather handbags have shot up by 5 percent through May, as reported by Credit Suisse.

“Although there were encouraging signs of recovery in June across several of the Group’s activities, revenue was notably down in the United States and Europe during the quarter,” says LVMH, “Asia, however, has seen a marked improvement in trends, with a strong rebound in China in particular.”

Shares in LVMH are down 3.1 percent compared to 2019.