DFS rebound gathers momentum as LVMH sales grow

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The luxury goods group reports strong sales in its Selective Retailing division among solid nine-month results

Luxury products group LVMH Moët Hennessy-Louis Vuitton has revealed year-on-year sales growth of 7% to Euro8.7m ($10.6m) for the first nine months of 2004. Its Selective Retailing division, which incorporates DFS Group, Miami Cruiseline Services, Sephora, Sephora.com, Le Bon Marché  and La Samaritaine,  reported an increase of 13%. Sales growth at DFS Group was attributed to the rebound in tourism levels during 2004.

LVMH's wine and spirits business revealed a 9% increase as its champagne business made good progress in the US and Japan.  Hennessy cognac increased its hold in the US during the period and continued its rapid development in China, Taiwan and Russia.

Its watch and jewellery brands reported a 6% sales rise during the first nine months. TAG Heuer, which is celebrating 40 years of Carrerra, delivered a strong performance in the US and Asia, as did Zenith. The watch Chiffre Rouge, developed by Hedi Slimane for Christian Dior, also proved positive results.

Its fashion and leathergoods business reported a 6% sales increase. Louis Vuitton continued its double-digit organic sales growth in the third quarter and Celine, Loewe and Marc Jacobs brands also contributed to the rise.

The fragrance and cosmetics division experienced a 1% rise driven by Parfums Christian Dior and Guerlain, both of which gained market share. The new feminine fragrance Pure Poison by Christian Dior and the new men's fragrance L'Instant pour Homme by Guerlain, made recent debuts. The company expects its sales momentum to continue throughout the fourth quarter.