FRANCE: Record 40% Sales Growth for LVMH in First Half 2000
The very strong sales growth seen in the first quarter (+39%) continued during the second quarter (+41%).
Sales increased in all our markets, by +37% in Europe, +68% in the US and +38% in Asia.
On a divisional basis, growth was as follows:
|in millions of Euros||1st half 2000||1st half 1999||Growth|
|Wines & Spirits||869||874||NS|
|Fashion & Leather Goods||1,447||1,033||+40%|
|Fragrances & Cosmetics||902||738||+22%|
|Watch & Jewelry||270||-||NS|
Growth in Champagne sales is in line with our targets. Sales in the first nine months of 1999 had been very high and had to be limited in the fourth quarter for optimal stock management. Demand for new products, such as the Nectar Impérial cuvée, which was launched on the American market, remains constant. Sales in Asia registered very strong growth.
Sales of Cognac are up by 16%. Sales of VSOP and XO are growing strongly in the US and in Asia (excluding Japan), especially in China and Korea. Pure White performed very well in Europe.
Sales in the Fashion & Leather Goods business group registered an exceptional increase of 40%. Sales for Louis Vuitton Malletier, which now has 271 stores, are up by 50%. A new global store has been opened in Munich and two new boutiques in China (Beijing and Schenzhen). The new Epi collections are meeting with great success, as are the new shoe and men's ready-to-wear collections. Sales for Loewe and Céline are growing through new products and the opening of new stores.
Sales in the Fragrances & Cosmetics business group are increasing particularly strongly. In the four fragrance houses alone sales are up by 22%. "J'Adore" by Christian Dior continues to perform very well, along with "Indécence" by Givenchy and "Time for Peace" by Kenzo. The new "Oblique" fragrance from Givenchy has met with great success. Sales growth in the US has exceeded 40%. The recently acquired start-ups, Bliss, BeneFit, Hard Candy, Urban Decay, Make up For Ever, have registered strong sales growth.
The Watch & Jewelry business group has demonstrated sustained growth, particularly TAG Heuer which has performed extremely well in the US, Europe and Asia thanks to the success of the "Alter Ego"model. Initial sales of the new "Class Elite Dual Time" model by Zenith are very good, as are those of Chaumet's new "Class One Joaillerie" model. LVMH has strengthened its position in writing instruments through the acquisitions of Omas, the world leader in luxury pens.
Sales in the Selective Retailing business group are up by 59%. Sales at DFS continue to grow at a sustained rate (+31%), particularly in Hong Kong and in Oceania. This growth is the result of the increased number of Japanese tourists and of a higher number of visits to Gallerias, owing to a policy of continuous improvement of merchandise. New airport concessions have been won in Los Angeles and Seoul. Sephora, with 334 stores, is pursuing growth in Europe with the creation of a joint venture in Greece and the first successful opening in the UK. Growth continues to be strong in the US, where Sephora has 57 stores. In Japan, the network now comprises 4 stores.
The continued growth of sales in the first half enables us to confirm our operating profit growth objective of at least 20% in 2000.
First half results will be published on 14th September.
"Certain information included in this release is forward-looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its wines and spirits, fashion and leather goods, fragrances and cosmetics, watches, and selective retailing activities, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Company's businesses involve a number of important factors that are subject to change, as are mentioned under "Risk Factors" in the Company's Form 20-F for the year ended December 31, 1998, which is on file with the United States Securities and Exchange Commission."
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