LVMH's 2004 sales and profits swell lavishly

20th January 2005, Comments 0 comments

PARIS, Jan 19 (AFP) - French luxury goods group LVMH Moet Hennessy Louis Vuitton posted Wednesday a six percent increase in sales for the full year 2004 and said that operating profits rose 10 percent.

PARIS, Jan 19 (AFP) - French luxury goods group LVMH Moet Hennessy Louis Vuitton posted Wednesday a six percent increase in sales for the full year 2004 and said that operating profits rose 10 percent.

The company, which owns such brands as Dior, Celine and Givenchy, reported 2004 sales of EUR 12.361 billion (USD 16.063 billion), rising six percent from the EUR 11.96 billion the previous year. On a comparable currency rate basis, the increase was 11 percent.

"The group's performance is even more remarkable considering that it was achieved in a very difficult exchange rate environment, in which both the dollar and the yen continued to weaken against the euro," LVHM said in a statement.

Operating profits were expected to rise about 10 percent in 2004. The company had previously indicated that operating profits would post "significant" growth.

Looking ahead to this year, the luxury group again forecast "significant growth" for operating profits.

"While the economic and exchange rate environment is likely to remain challenging, LVMH will continue to pursue its long-term growth strategy based on creativity and product quality," it said.

"The group has once again set the objective of achieving a tangible increase in operating income while continuing to deliver market share gains and extend its leadership in the global luxury sector," it added.

In 2004, sales by LVMH's core fashion and leather goods businesses reached4.367 billion euros, up five percent on a reported basis and up 10 percent when adjusted for currency rates. The key Louis Vuitton brand saw "exceptional" performances in Asia and the United States, LVMH said.

"The year-end saw particularly strong sales for the brand, as it recorded its best ever weekly sales during the week of Christmas," it said.

LMHV's wine and spirits sales rose eight percent, or 11 percent on an adjusted basis, to EUR 2.279 billion, while sales of Perfumes and Cosmetics slipped one percent to EUR 2.14 billion, but rose four percent on an adjusted basis.

Watches and jewellery sales also fell one percent on a reported basis, to EUR 497 million, but rose 18 percent on an adjusted basis.

Selective retailing revenues rose 11 percent, or 17 percent on an adjusted basis, to EUR 3.378 billion.

© AFP

Subject: French News

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