Following excellent progress (+19%) in the first half, operating income growth at LVMH should accelerate further in the second half of 2002
LVMH Moet Hennessy Louis Vuitton, the world’s leading luxury products group, today announced that consolidated sales for the nine months to 30th September 2002 grew to 8.85 billion Euros, an increase of 2% compared to the same period last year and 5.4% based on constant exchange rates. This performance demonstrates that the general uncertainties surrounding the luxury goods market are not affecting all companies in the same way; in fact, the LVMH Group continues to grow both sales and profits. This reflects the enduring appeal of the Group’s products and brands, whose market share continues to grow, the effectiveness of its strategy and the performance of its teams who have delivered improved results despite the difficult environment.
|In million euros||Nine months to 30th September|
|Wines & Spirits||1 410||1 458|
|Fashion & Leather Goods||2 647||3 028|
|Perfumes & Cosmetics||1 563||1 620|
|Watches & Jewelry||389||384|
|Selective Retailing||2 575||2 359|
|Other activities and eliminations||77||1|
|Total||8 661||8 850|
As expected, Group sales demonstrated accelerating growth in the second half of the summer due to several innovative product launches and new store openings. All Group operations were growing as of the end of September with the single exception of DFS where sales remain impacted by weakness in tourism. The evolution of Louis Vuitton sales has been spectacular with, among other initiatives, the launch of the Tambour watch and the Louis Vuitton Cup product range and the opening of the Omotesando Louis Vuitton in Tokyo. All of Louis Vuitton’s markets have benefited from these initiatives. The unveiling of the Group’s spring/summer 2003 collections were universally well received by the press and by buyers from around the world – with special praise awarded to those of Dior, Vuitton and Fendi. In addition, Christian Lacroix’s first collection for Pucci achieved considerable global recognition. The Perfumes and Cosmetics business group enjoyed the very successful launch of women’s fragrance Dior Addict in September, and has a number of additional launches in the pipeline. Champagne sales are again growing in line with consumption, following the strong rebound at the beginning of the year. Hennessy cognac continues to grow, notably in the American market. DFS is benefiting from a slow but steady recovery in tourism while sales at Sephora in the United States continue to grow more than 20 % on a constant stores basis. Outlook : The priority given to organic growth and the actions implemented to improve profitability and increase cash flow are bearing fruit. The success of this strategy allows LVMH to confirm a very significant progression in operating income expected in the 2002 full year. Due to the dynamism of its teams and the creativity and quality of its products, LVMH will continue to reinforce its leadership in the global luxury marketplace.