China becomes refuge for U.S. companies after overcoming COVID-19

In earnings calls for the quarter, senior executives from some of America’s best-known brands singled out China for salvaging what otherwise was a rough three months.

“China offered a model of recovery, stabilization and then growth,” David Weinberg, chief operating officer of Skechers USA Inc., told analysts on a late July earnings call. Overall, the sneaker company’s quarterly sales dropped 42% from a year earlier but were bolstered in part by 11.5% growth in China…

The gulf between China and the rest of the world was widest in the luxury sector. For LVMH Moët Hennessy Louis Vuitton SE, China was “a very good offset for the rest of the business, which is suffering,” Chris Hollis, the head of investor relations, said on his company’s earnings call. While LVMH revenue fell 38% year over year in the April-to-June period, China jumped 65%, a surge driven by Chinese luxury consumers trading foreign shopping sprees for local buying runs because of travel restrictions.