DFS heads towards break-even point

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DFS Group is heading towards break-even or even better this year, according to parent company LVMH. In nine-month results released today, the group said the steady recovery in international travel had set DFS on target for growth against last year

DFS Group is heading towards break-even or even better this year, according to parent company LVMH. In nine-month results released today, the group said the steady recovery in international travel had set DFS on target for growth against last year. The Selective Retail arm of LVMH, of which DFS is part, recorded a 13% fall in sales for the period, but viewed at constant exchange rates, this fall was just 2% year on year.

Overall, LVMH recorded growth in organic sales of 3% to Eu8.1bn ($9.4bn).

Wines & Spirits recorded strong organic growth in the third quarter, with new gains in market share. Growth was particularly noteworthy for champagne in Japan and for cognac in the US.

Louis Vuitton recorded double-digit organic sales growth over the first nine months. Strong local customer demand continued over the summer in Japan and the US where third-quarter sales were markedly higher, improving by over 20% compared to the period in 2002.

Since June, the Watches and Jewelry division has benefited from a global recovery in the market along with a return on the investment made in communications and product innovation over the first half of the year. Organic sales grew by 8% in the third quarter, with particularly strong contributions from Montres Christian Dior and Zenith.

Looking ahead, the company said: "LVMH expects to continue to achieve sales growth over the remainder of the year despite the high comparison with the strong group sales reported in the fourth quarter of 2002. Tourism levels have continued to improve in October and there appear to be signs of a sustained economic recovery in the US and Japan. The Group expects this momentum to extend through the fourth quarter. In this context, LVMH confirms its objective of tangible growth in operating income for 2003."