Leathergoods boost LVMH sales

25 April 2004

LVMH, the world's largest luxury-goods company, have announced that net profit rose by 30% in 2003, driven by their Louis Vuitton leathergoods, and reaffirmed their outlook for 'tangible' profit growth in 2004. The company, whose brands include Fendi furs, Christian Dior perfumes and Dom Pérignon Champagne, said in a statement that the first two months of 2004 had continued a growth trend that began in the summer. 'LVMH have set themselves an objective for a tangible increase in operating income in 2004', the company said. Revenue in 2003 fell 6% to €12 billion, hurt by the euro's 20% gain against the dollar and dollar-linked currencies, like those of China. The company said that full-year operating profit rose 9% to €2.18 billion, or $2.65 billion, beating analysts' predictions and their own forecast for a rise of about 7%. LVMH have been fighting industry-wide problems such as the strength of the euro, severe acute respiratory syndrome and the war in Iraq - all of which dampened retail travel and spending on luxury goods. But sales and operating profit accelerated in the second half of the year, growing at double-digit pace. The group's fashion and leathergoods arm, with 13 brands, contributed most to 2003 operating profit. It rose 2.4% to €1.31 billion, fuelled by Louis Vuitton. The gains are also a product of divestment, store closings and other cost cuts that were instituted after September 11, 2001, triggering a two-year slowdown in the luxury goods industry. Source: [http://www.worldnews.com]

Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.