| LVMH continues to thrive |
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| Wednesday, 19 October 2005 | |
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Luxury goods group LVMH Moët Hennessy Louis Vuitton has survived natural disasters to report an organic growth of 12 percent in third-quarter sales to €3.43 billion (£2.34 billion). Finance director Jean-Jacques Guiony told WWD during a conference call on Tuesday that the group's performance was “outstanding�. “We really expect the rest of the year will be in line with what we've seen. The growth is coming from all directions,� he said. Especially the Louis Vuitton brand is helping to drive sales, with double-digit gains. Only in Japan did the brand's sales fall short of the double digits. In the US, the brand's performance was “robust�, despite its New Orleans store having been destroyed by Hurricane Katrina. “Katrina's impact has been fairly limited in our business,� Guiony told analysts. “The US market is showing no signs of slowing down.� LVMH expects the recent opening of its new Louis Vuitton flagship store on the Champs-Elysées in Paris to have a positive impact on the brand's recognition and global sales. Guiony estimated that the increase in floor space during the fourth quarter would amount to 10 to15 percent, but remained vague about projections for the period. In the first nine months of 2005, group sales rose 11 percent to €9.59 billion. Fashion and leather goods rose 9 percent to €3.38 billion, while perfumes and cosmetics climbed 9 percent to €1.62 billion. Besides the Vuitton brand, LVMH highlighted strong performances by Fendi, Marc Jacobs, Loewe and Emilio Pucci. However, Guiony said that Donna Karan sales were “flat� and “quite weak�. Kenzo was also proving to be a disappointment for the group; Guiony indicated a negative quarter for the brand in terms of sales and profits and said that designer Antonio Marras had “a lot of work� in store. Meanwhile, in a separate release, LVMH's parent company Christian Dior SA reported sales for the nine-month-period up 12 percent to €10.06 billion. The company said total sales for the third quarter at fashion house Christian Dior amounted to €179 million, a rise of 14 percent. It, too, spoke of strength across all products categories. |

