LVMH first quarter sales return to growth

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LVMH Moet Hennessy Louis Vuitton, the leading luxury products group, today announced that consolidated sales in the first quarter of 2002 reached a record Eur2,955m ($2,592m), an increase of 8% compared to the first quarter of 2001, which had itself increased by 12%. Despite continued tough trading the trend for the group was firmly up on the final quarter in 2001, which posted a year-on-year sales decline of 4%.

LVMH said the increase in sales reflects the excellent performances of the brands in an environment made difficult by the continued sluggishness in travel-retail. Sales were particularly strong in the Wines & Spirits and Fashion & Leather divisions as market share was increased in both sectors. Fashion was boosted by the incorporation of Donna Karan into the results and a higher contribution from Fendi, now 51% owned. LVMH did not disclose like-for-like sales.

DFS sales were better than expected and total Selective Distribution sales were down 5% on a year ago. On a divisional basis, sales were as follows:

Wines & Spirits: Eur457m ($401m) +19%
Fashion & Leather: Eur1,087m ($954m)+22%
Perfumes & Cosmetics: Eur495m ($434m) -2%  
Watches & Jewellery: Eur122m ($107m)  -1% 
Selective Distribution: Eur781m ($685m) -5%
Other activities:  Eur13m ($11m) n/a
Total: Eur2,955m ($2,592m) +8%