Rise in LVMH sales in first quarter

21st April 2005, Comments 0 comments

PARIS, April 21 (AFP) - Luxury goods group LVMH said Thursday sales in the first quarter rose 9.75 percent from a year ago, to EUR 3.082 billion (USD 4.025 billion), and reiterated a target of "tangible" growth in full-year operating profit.

PARIS, April 21 (AFP) - Luxury goods group LVMH said Thursday sales in the first quarter rose 9.75 percent from a year ago, to EUR 3.082 billion (USD 4.025 billion), and reiterated a target of "tangible" growth in full-year operating profit.

First-quarter organic sales growth was 11.0 percent, said LVMH Moet Hennessy Louis Vuitton, which was reporting under international accounting rules known as IFRS from the first quarter of this year.

The French company, which owns such brands as Dior, Dom Perignon, Celine, Givenchy, Hennessy, Moet and Chandon, and Tag Heuer, said its outlook was confirmed by a pick-up in tourism and economic growth in the United States and Asia that offset a negative impact for the strength of the euro.

Shares in LVMH rose 1.73 percent to EUR 55.95 in early afternoon trading in Paris, while the CAC 40 index was up 0.14 percent at 3,955.63.

Analysts at Global Equities said the sales figures came in above consensus forecasts and despite a tough comparison with a year earlier.

They said that in light of the first-quarter performance, the recent fall in the share price represents a "good opportunity" to buy into the stock, arguing that fears over the impact of currency effects have been overdone.

Also, the stock was trading at a 10 percent discount to the sector, compared with a historical premium of 15 percent, they said.

© AFP

Subject: French News

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