LVMH forecasts rebound as DFS suffers

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LVMH Moët Hennessy Louis Vuitton today announced that sales for the first half of the year rose 2% to Eur5.8bn ($5.8bn) compared to the first half of 2001. Operating profits are expected to rise 15%

But sales at the group's Selective Distribution division, which includes DFS Group, fell 9% in the period to Eur1.56bn. DFS Group sales alone fell 18%, blamed on the weak Yen and the travel market.

Sales in Wines & Spirits rose 7%, Fashion and Leather sales rose 16%, Perfumes & Cosmetics were up 2% and Watches & Jewellery fell 3%.

LVMH said the results reinforced the return to growth it has forecast earlier in the year, and expects the second half to improve on this performance, with new product launches, store openings and the easier comparison with the second half of 2001.

In a trading statement today, LVMH said: 'All of our major brands achieved sales growth at constant exchange rates in the first half, despite the ongoing weakness of tourism. Buying trends of domestic Japanese and Korean clients were negatively impacted by the short-term effects of the World Cup in the month of June.'