LVMH, the world’s largest luxury company, gave investors their first read on the industry’s performance through the health crisis after the Paris stock market closed on Thursday. It reported a 17 per cent decline in sales for the first quarter versus the comparable period of 2019.

Revenue at its flagship fashion and leather goods division was down a better-than-expected 10 per cent. But its perfume and cosmetics unit shrank by a fifth—double the reduction seen at L’Oréal’s luxury cosmetics business, which reported the same day. LVMH slashed its dividend to save cash and cut its 2020 capital expenditure budget by 40 per cent. The two measures will save around €2.3 billion ($2.5 billion), Credit Suisse estimates.

LVMH’s sales in mainland China for big fashion brands like Louis Vuitton and Christian Dior increased by 50 per cent year over year in the first two weeks of April, as restrictions on movement were lifted. However, spending by Chinese nationals is still down across the entire portfolio.