LVMH records strong 2005

Luxury goods giant LVMH Moet Hennessy Louis Vuitton has recorded a rise in revenues in 2005 of 11 percent, thanks to increased sales in all geographic regions and accelerated growth in the US, Europe and Asia.

The group saw revenue rise to €13.90 billion (£9.57 billion), compared with €12.48 billion the year before. Same store sales rose 11 percent, while fourth quarter sales increased 13 percent to €4.31 billion.

The company's fashion and leather goods unit recorded growth for the year of 17 percent. Same-store growth for the unit rose 11 percent to €4.8 billion. The Louis Vuitton brand was the main contributor, accounting for two-thirds of the group's operating profit.

LVMH said that the new Marc Jacobs brand's leather goods range was generating such interest that it was having difficulty satisfying demand. The group also said that the Pucci and Fendi brands did particularly well in 2005.

www.lvmh.com
23 January 2006

LVMH profits leap

Louis Vuitton Moet Hennessy has posted a leap in net profits for the first half of €599 million (£405 million). The company said that it had enjoyed “dynamic” sales over the summer months, and is looking forward to an equally strong second half. “We are very optimistic for the second half,” an ebullient chairman, Bernard Arnault, told analysts and journalists at the LVMH headquarters on Wednesday. Although currency fluctuations caused a downward adjustment of €149 million off the bottom line, Arnault said that he expects more favourable exchange rates in the second half. “I'm optimistic in as much as I hope the dollar won't come down again,” he said.

Arnault said that the group's best performing brand, Louis Vuitton, continued to generate “exceptional double-digit growth in July and August. Despite the company's difficulties in meeting customer demand for popular items like its denim handbags with the LV monogram, “we are very confident regarding the growth of Louis Vuitton”, Arnault said.

Louis Vuitton chief executive Yves Carcelle said that the company would triple the quantities of denim bags delivered to stores this fall in order to relieve growing waiting lists for the super hot items. He said that the denim range was a major opportunity for Louis Vuitton. What makes this bag even more desirable is the fact that counterfeiters have not yet been able to reproduce the look. “Nowhere have we found a single counterfeiter capable of producing denim that is jacquard and stonwashed.”

The results were generally in line with analysts' expectations. The group said accepted a €147 million one-off charge in the first half related to the closing of its Samaritaine department store. It was closed this June when it was discovered that the building did not meet safetey requirements. Had it not been for Samaritaine's closing, net profits would have surged 38 percent. Meanwhile operating profits rose 11 percent to €1.09 billion, with sales up 10 percent to €6.17 billion.

www.lvmh.com
8 September 2005

Court rules against Coach LVMH complaint

The Japanese Fair Trade Commission on Thursday ruled against Coach's complaint against LVMH Moët Hennessy Louis Vuitton. But the U.S. company believes the exercise has resulted in LVMH changing its behavior in Japanese department stores. In its complaint, Coach alleged LVMH had used anticompetitive practices by applying pressure on Japanese department stores to stop carrying Coach; if not, it threatened to stop developing Louis Vuitton's business in those stores. The JFTC determined that department stores are using their discretion and were not influenced by LVMH.

"We believe our filing with the JFTC and the subsequent investigation served our primary goal," said Lew Frankfort, chairman and chief executive officer of Coach Inc., in a statement. "To send a strong message that we will not tolerate any actions that limit consumer choice." However, he added, "This finding is surprising, because it contradicts what department stores repeatedly reported to Coach executives prior to the filing of the complaint." Frankfort conceded the investigation wasn't for naught, however.

"We are hopeful that the increased scrutiny brought to bear by the filing of this complaint — which appears to have resulted in an abatement of LVMH's interference with our department store partners — will continue in the future and contribute to the promotion of fair competition in the Japanese market."

A senior LVMH executive said in a statement, "Coach's tactics in filing this compliant and in seeking media attention were nothing but desperate efforts to compensate for the inability of their products, manufactured in regions with cheap labour, to compete with true luxury brands manufactured in Europe , such as Louis Vuitton. Louis Vuitton will continue its extraordinary success in Japan and its leadership in the true luxury goods sector in that market."

Despite the outcome, Coach continues its high-flying performance. In August, the company upped its first-quarter earnings projection to above analysts' estimates after recently reporting a 48.6 percent jump in fourth-quarter earnings on a 23.8 percent sales gain. The firm predicts earnings per share to be at least 25 cents on sales of at least $445 million in the first quarter, with same-store sales expected up in the low teens. The company also projected that fiscal year 2006 sales will reach $2.11 billion — the first time sales would top $2 billion.

2 September 2005

LVMH denies sale Donna Karan

LVMH SA, the French luxury goods concern, had denied rumours that it has sold US fashion label Donna Karan, according to dealers quoted by AFX. Market rumours had been circulating that LVMH was selling Donna Karan to Jones Apparel Group Inc for £700 million.

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23 August 2005

L Capital acquires stake in Mariella Burani

L Capital, a division of luxury goods conglomerate LVMH Moet Hennessy Louis Vuitton, has aquired a 6 percent stake in the Mariella Burani Fashion Group, according to reports by just-style.com. The acquisition is said to worth €22 million (£15.2 million). In return, L Capital will part with its 20 percent stake in Mariella Burani's leather goods divisions, Antichi Pelletieri. L Capital will be allocated 1.9 million new shares in Mariella Burani, making it the label's second largest shareholder.

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1 August 2005

Sales Rise At LVMH

LVMH Moët on Monday reiterated its goal for "tangible" full-year operating profit growth as chairman Bernard Arnault's firm reported second-quarter sales advanced 9 percent to 3.09 billion euros. Gains were strong across all divisions and geographical zones, led by double-digit gains at the French luxury conglomerate's Louis Vuitton brand and robust sales in the U.S. and Asia . Sales in Japan and Europe showed resilience, driven by Vuitton sales, finance director Jean-Jacques Guiony said during a conference call with analysts and reporters.

Separately on Monday, Christian Dior SA, parent of LVMH and the Christian Dior fashion house, reported second-quarter sales largely in line with the luxury group. Christian Dior said sales of its fashions and leather goods increased 12 percent to 154 million euros, or $194.1 million, led by "particularly strong" sales in Asia and the U.S. The LVMH results, which come against the backdrop of terrorism and economic uncertainty in Europe , indicate that the appetite for luxury remains strong. LVMH is scheduled to report first-half earnings Sept. 7.

Sales in the half grew 10 percent to 6.17 billion euros, slightly ahead of analysts' expectations. LVMH reported the figures after the bell at the Paris Bourse, where shares finished trading up 0.7 percent to close at 68.70 euros. Louis Vuitton, the group's cash cow was propelled by product launches such as the Denim and Antigua bag lines. The brand also profited from "strong" growth in its watches, jewelry and sunglasses, relatively recent categories for the brand.

Guiony said Vuitton posted "strong" single-digit growth in the U.S. , with sales building momentum in May and June as products such as the multipocket Manhattan bags reached stores. Among the group's other fashion and leather goods brands, Celine, Marc Jacobs, Pucci and Berluti all posted double-digit sales increases, LVMH said.

26 July 2005

Uma Thurman stays at Louis Vuitton

Uma Thurman is expected to stay modelling for Louis Vuitton, as the French fashion house continues its trend to feature famous actresses in its editorial campaigns. While shooting the forthcoming fall-winter campaign in March, Thurman's second for the French luxury brand, talk on the set turned to the possibility of reuniting for a third time, for the spring-summer 2006 season.

"I did mention it," Marc Jacobs, Vuitton's creative director, said on Wednesday. "We all talked about it during the shoot. It just sort of feels like it works." The new autumn/winter ads will debut in August issues of fashion magazines.

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2 June 2005

The end of an affair?

Rumours are circling that designer Roberto Menichetti and Celine may part ways, writes vogue.co.uk.

Italy-based Menichetti has been designing for Celine for the past two seasons, since he took over from Michael Kors. However, neither of his collections has been well received by critics. They still associate the label with uber-wealthy ladies who lunch and jet around the globe in search of the perfect tan. In other words, too exclusive.

Before joining the French fashion house, Menichetti worked for Burberry for three years and also worked at Jil Sander in Germany. For his Celine collections he looks to Parisian ladies for inspiration. Not that his bosses at LVMH appear to have been wowed. Rumour has it that they have been trying to woo designer Peter Som. According to WWD, Som refused to comment.

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26 May 2005

Lagerfeld stays at Fendi

Karl Lagerfeld has struck a new deal with LVMH Moet Hennessy Louis Vuitton SA whereby he stays on as creative director at Fendi. LVMH said the cooperation with Lagerfeld had been "renewed and strengthened". The company did not reveal the terms of the deal. In the past, Lagerfeld and LVMH have disagreed on management at Fendi.

www.lvmh.com
19 May 2005

LVMH excellent results

LVMH Moët Hennessy Louis Vuitton, the world's leading luxury products group, has reported organic sales growth of 11 per cent in the first quarter of 2005. The 11 per cent increase comes on top of a 10 per cent first-quarter organic sales rise in 2004. Consolidated sales amounted to EUR 3,082 million (GBP 2,21 million) for the first quarter of this year.

The fashion and leather goods division continued to produce double-digit organic sales growth. Japan and the Asian markets returned to growth, driven by increased tourism, especially in China. The new Monogram Cerises line proved to be an enormous success at the beginning of this year and is expected to continue delivering good results.

Other fashion brands including Celine, Marc Jacobs, Pucci and Berluti enjoyed an auspicious start to the year and Fendi achieved double-digit sales growth in its stores.

www.lvmh.com
25 April 2005

LVMH reports good results

The French luxury goods group LVMH has revealed good results for the full year 2004. Net income for the group soared 39.7 per cent to EUR 1.010 billion (GBP 74 million) from EUR 723 million in 2003. This is the first time the company has surpassed the EUR 1 billion mark.

2004 sales grew 6 per cent toEUR 12.62 billion from EUR 11.96 billion in the same period the year before.LVMH stated that all groups realised a growth in market share. The Louis Vuitton brand reported a double-digit increase in sales, especially in the US and Asian markets.

Fashion brands like Celine, Marc Jacobs, Pucci and Berluti also continued to grow, specifically in Asia.Furthermore, LVMH reported that the reorganisation at Fendi and Donna Karan was progressing well, with good projections for the medium term.The company said that will continue its current strategy of focusing on internal growth and the development of its leading brands in the coming year.

LVMH is the world's leading luxury goods group. The Fashion and Leather Goods division comprises brands like Louis Vuitton - which happens to be the world's leading luxury brand - Celine, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti and Stefano Bi.

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10 March 2005

Coach files complaint against LVMH

US accessories brand Coach has filed a complaint against French luxury goods LVMH Moët Hennessy with the Japanese Fair Trade Commission. Coach allesges LVMH has repeatedly engaged in anticompetitive measures.

Specific details of the complaint could not be made public in compliance with Japanese law, but Coach alleged in a statement that LVMH has been actively trying to coerce Japanese department stores into dropping Coach by threatening to stop developing Louis Vuitton in those stores.

"We cannot accept being subjected to anticompetitive practices aimed at limiting our ability to freely offer Coach in the marketplace," Lew Frankfort, chairman and chief executive officer of Coach Inc., said in a statement. "It is not the way we do business and is contrary to our principles of fair play." Reached in Paris late Wednesday, an LVMH spokesman had no comment on the Coach complaint.

Louis Vuitton is the top imported accessories brand in Japan, but Coach has said that it recently eclipsed Prada and Gucci and is now number two behind Louis Vuitton. In Japan, Coach has had a 40 percent compound annual growth rate at retail over the last four years and the country represented about 21 percent of Coach's total sales in fiscal 2004, which were $1.32 billion.

www.lvmh.com
10 March 2005

Shrewd Jacobs

When Tom Ford left Gucci last April people mourned the fact. However, another stellar designer, Marc Jacobs, used Ford's departure to his advantage. Jacobs was actually offered Ford's job at Gucci when the latter left. With this offer in hand, Jacobs managed to improve his deal with employer LVMH. The result was more money and stock options, a source told PAGESIX.COM.

Ford's departure also incited Bernard Arnault, chairman of LVMH, to lock Jacobs into a long-term contract, which is reputed to span the next ten years. The negotiations were finally signed last year after long negotiations. Well done, Marc Jacobs!

www.lvmh.com
1 February 2005

Sephora to close down

Sephora, the perfume chain owned by LVMH, is closing down in the UK. Property sources say that the chain's 10 shops have been put on the market. It is believed that the French luxury group has been trying to sell the chain as a going concern, but the stores are now likely to be sold piecemeal.

13 December 2004

LVMH to double in sales

Bernard Arnault, CEO of luxury retailer LVMH, has revealed that he expects the company's sales and size to double over the next five years. Company profits climbed by 30% last year to EUR497 million (GBP353 million).

Arnault added that it would take a generation for Asian sales to catch up in volume to the US. The US now generates 25% of total sales. He explained that LVMH plans to take an easy-does-it approach to the growth of their Asian presence. He said it would take time to build a brand and rushing things would be a disaster. He is determined not to let the company's standards slip, believing this to be detrimental to its reputation.

Arnault spoke at the International Herald Tribune Conference in Beijing. He also appealed to authorities to take on counterfeiters. "We know where the people are and where they produce. Sending policemen or customs officials to take merchandise and destroy it would kill the energy of the counterfeit producers," he said. LVMH's brand Louis Vuitton is one of the most popular brands among counterfeiters.

www.lvmh.com
7 December 2004

LVMH profits climb

The French luxury goods retailer has announced a profit rise of 10 %. Sales were up at £ 2.2 billion and the company has high expectations for the rest of the year. Chief Financial Officer Jean-Jacques Guiony expressed his faith in the continued success of LVMH and predicted that the mometum would carry through to the fourth quarter and beyond.

The strong results are not only due to the sales of the Louis Vuitton bags, or of items from Celine, Loewe, Marc Jacobs and Christian Dior, all of which are owned by LVMH. According to Dior presiden Sydney Toledano, the current optimism was due to the excellent sales of a new jacket designed by John Galliano, and the opening of several new stores.

www.lvmh.com
18 October 2004

Vuitton in lion's den

The French luxury retailer opened a store in Shanghai last week. In itself a risky move in light of the fact that Shanghai is the hub of the forgeries market. Many designer bags are craftily reproduced here, and Louis Vuitton bags are no exception.
However, Vuitton is relying on the Chinese authorities to put a stop to the production of fakes and to deal with the forgers.

www.lvmh.com
27 September 2004

Louis Vuitton Opens New London Boutique

Louis Vuitton has opened a brand new store in Sloane Street and launched a sexy new advertising campaign featuring Hollywood's elite actresses, including Scarlett Johansson, Christina Ricci and Chloe Sevigny.

The new boutique is the first in the world to carry clothing, accessories and the new jewellery line, although you won't find any of the merchandise on sale. Louis Vuitton doesn't do sales. It doesn't need to. While the rest of London's luxury goods stores are drowning in a sea of discounts, Louis Vuitton's prices remain as expensive as they always are, 365 days a year. Perhaps that is why the French conglomerate is the most profitable luxury brand on the planet, trouncing its nearest rivals Prada, Gucci and Hermes with USD3.8 billion in annual sales.

Creative director Marc Jacobs continues to prove he knows what the affluent lady wants, and his designs are as hot as ever. His autumn / winter collection was an immediate hit encapsulating the season's mood, with models wearing belted, fur-collared tartan coats, dainty high-heeled booties, puffed-sleeve blouses and slim tweedy skirts. The monogram velvet printed bags are sure to be flying off the racks as well as the brocade ankle boots tied with ribbons.

Opting for a glamorous Hollywood film set, this season the house turned to the silver screen for its inspiration rather than the usual catwalk supermodels. While the supermodel may not quite be dead, she is certainly not coining it like she used to.

As for next season's hottest handbag, it's the one being clutched by Chloe Sevigny in the new ad. The Gracie is a winning mix of raspberry velvet and suede, and it's yours for the princely GBP3,500.

www.lvmh.com
22 July 2004

LVMH Reports Drop in Sales

Luxury group LVMH has reported a 10 per cent fall in sales to GBP3.69bn for the first half of the year.

Sales in the company's fashion and leather division fell by 6 per cent to GBP1.33bn. Louis Vuitton recorded double digit sales growth for the six month period.

4 August 2003
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LVMH brand Fresh introduced

Fresh, the LVMH-owned beauty brand, will introduce its first products for men in early June. The five-product line, based on anti-oxidant rich olive extract, comprises a facial cleanser (GBP 17), shaving cream (GBP 15), after-shave moisturizer (GBP 22), body wash (GBP 16), and tobacco flower EdC (GBP 31). Fresh claims its current product offer already has an enthusiastic following among men, and hopes to appeal to more male consumers with this offer.

The line will be available in Barkers, Liberty and Selfridges department stores in the UK; concept beauty store Parfumerie Générale in France; and Fresh's standalones, as well as Sephora (LVMH) perfumeries, Bergdorf Goodman, Barneys and Neiman Marcus department stores in the US.

April 23, 2003
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Kors to leave Celine

Michael Kors is to step down as creative director at Celine after the autumn/winter 2003 collection - and possibly earlier, according to US trade newspaper WWD.
Lawrence Stroll confirmed that Kors would focus on his own label business in future. In January, Stroll and Silas Chou bought 85% of Michael Kors through their company Sportswear Holdings Limited. They have ambitious plans to develop the Kors label.

March 11, 2003
www.michaelkors.com

Profit increase for LVMH

LVMH Moët Hennessy Louis Vuitton, the French luxury goods group, said 2002 operating profit rose 29 per cent. Its core brand Louis Vuitton and a strong performance in Japan drove up sales. LVMH opened a new Louis Vuitton store in Tokyo last year.

The strong performance of its star brand was boosted by new products such as the Tambour watch and Papillon bag. The company also hopes this spring's launch of new bags designed by Takashi Murakami will attract customers.

Net income, which in 2001 fell to 10 million EUR, recovered to 556 million EUR in 2002. The company added that cost cutting and lower debt had contributed to the improvement in 2002 net income.

www.lvmh.com
March 7, 2003

LVMH acquires majority control of Rossimoda

LVMH, the French luxury goods conglomerate, on Wednesday confirmed it has acquired the stake in Italian luxury shoemaker Rossimoda SpA it did not already own.

Two of the three Rossi brothers agreed to sell their stakes to LVMH for a secret sum, while Rossimoda chief Luigino Rossi will keep hold of a small interest in the company. Mr Rossi will hold on to his role as president and CEO of the Padua-based company for the next two to three years, LVMH said. The transaction is expected to conclude next April.

Rossimoda was founded in 1942 and specializes in the production of women's shoes for the high-end market. Apart from its own brand, the company produces under licence for companies such as Calvin Klein, Emilio Pucci and Marc Jacobs. In March last year, Rossimoda signed a deal for the production of a footwear collection for US fashion house Donna Karan.

www.lvmh.com
February 21, 2003

LVMH sells Michael Kors stake

LVMH Moet Hennessy Louis Vuitton SA has sold its one-third stake in clothing-design firm Michael Kors LLC to Sportswear Holdings Limited, controlled by Silas Chou and Lawrence Stroll for an unreleased sum, Thursday's Wall Street Journal reported.

Sportswear Holdings Limited has a more than twenty-year track record of successfully building world-class brands, including British luxury brands Asprey and Garrard, Tommy Hilfiger and Polo Ralph Lauren Europe. Chou and Stroll will also acquire shares from other holders, ending up with an 85 per cent stake in Michael Kors. Mr. Kors, the 42-year-old designer, will own the remaining 15 per cent. "Michael Kors is among the most talented designers in the world," commented Lawrence Stroll. "Silas and I are excited to expand our luxury group and see significant opportunities to grow Michael Kors as an American luxury lifestyle brand.

Michael Kors LLC, based in the US, produces a expensive designer collection that carries the Michael Kors label, with coats retailing for as much as 2,500 USD. Mr. Kors also designs a less-expensive label, Kors by Michael Kors, as well as a men's designer collection. Mr. Kors said his company, which also boasts a handful of licensees, is profitable but declined to reveal sales or earnings.

www.michaelkors.com
January 31, 2003

LVMH sells cosmetic brands

In line with the company's policy of concentrating on its "star brands", luxury goods giant LVMH announced this week it is finalizing the sale of two of its California-based cosmetics companies, Hard Candy and Urban Decay to the Falic Group that is based in Florida.
A spokesman for LVMH Moet Hennessy Louis Vuitton declined to disclose terms of the sale, or a price. It also wouldn't disclose how much the Paris-based company paid for the two in the late 1990s. He said the companies were profitable but that margin prospects at both weren't in line with LVMH's "demanding targets."
LVMH's "star brands", include the Louis Vuitton leather goods and fashion business.
Founded in the mid-1990s, the two cosmetic businesses are targeted at younger consumers and are seen as more adventurous than other LVMH cosmetics operations such as Dior and Guerlain. The family-controlled Falic Group is best known for its Duty Free Americas chain of stores.
The New York Times reported today that LMVH also plans to sell its remaining 27.5 percent stake in the auction house Phillips de Pury & Luxembourg to the co-chief executives of Phillips, Simon de Pury and Daniella Luxembourg. The newspaper reports that 50 of the auction house's 135 employees in New York and London were laid off on Monday.

January 29, 2003

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Good Q4 results for LVMH

Luxury goods giant LVMH Moet Hennessy Louis Vuitton SA on Thursday posted a better-than-expected eight per cent rise in fourth quarter sales on the back of soaring demand for its fashions and accessories.

The company said its fourth quarter turnover rose to 3.84 billion euros from 3.56 billion euros in the year-ago period which helped push its full-year turnover up four per cent to to 12.69 billion euros from 12.23 billion euros in 2001.

Earlier this week the company revealed full-year sales at its Christian Dior Couture fashion house surged 41 per cent year-on-year to 492 million euros. LVMH said today it "benefited from the successful reception of new products such as the Papillon bag and the leather collection designed by Bob Wilson, as well as the demand for the more traditional products".

www.lvmh.com

January 24, 2003

Investment bank countersues LVMH

Investment bank Morgan Stanley said on Tuesday that it plans to make a counter suit against LVMH Moet Hennessy Louis Vuitton over the $100 million lawsuit against Morgan Stanley claiming unfair treatment in analyst research.

Morgan Stanley's made its decision known after a Paris court held a hearing into LVMH's complaint. During the hearing the Paris court formally established who is going to represent the two parties, and set March 3 for the next hearing.

Morgan Stanley said in a statement that it would sue LVMH over the proceedings, "which would never have been brought and are vexatious, without merit and an abuse of the French court system."

Both parties declined to comment on the proceedings or the couter suit.

Relations between LVMH and Morgan Stanley have gone down hill since the firm's investment bankers advised Gucci Group in 1999 to bring in French retailer Pinault-Printemps-Redoute counter takeover plans by LVMH.

January 23, 2003
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LVMH sees profits plunge with 99 percent

French luxury goods giant LVMH Moet Hennessy Louis Vuitton SA revealed a 99 per cent plunge in net profit for 2001 to 10 million euros from 722 million euros in 2000. The company has been hit hard by the travel and tourism slump in the wake of the September 11 terrorist attacks.

LVMH, the world's leading luxury products group, had a operating income in 2001 that amounted to 1,560 million Euros, against sales of 12,229 million Euros.

GOOD RESILIENCE AND RECORD MARGINS FOR LOUIS VUITTON AND HENNESSY

This limited slowdown in operating income testifies to the group's resilience in the difficult economic climate which weighed on the luxury goods market in 2001. The economic slowdown typified the year for the US and the tragic events of 11th September triggered a sharp decline in global tourism. It is important to note that operating income for the group remained at levels achieved in 2000, excluding Selective Distribution and Other Activities (Phillips) - an exceptional performance for 2001.

2001 demonstrated the strength of the Group's brands, its ability to innovate and the good geographic balance of its activities in the three major economic geographic zones - Europe, the US and Asia. Our Star brands also benefited from strong demand in the Japanese domestic market. Louis Vuitton, Hennessy, Christian Dior and Kenzo were the main growth drivers - as during the Gulf War and the Asian crisis, they were illustrative of the group's impressive ability to come through periods where the economic climate is difficult.

MEASURES TAKEN TO IMPROVE PROFITABILITY

The explanation for lower results can essentially be found in Selective Retailing and Other Activities, where energetic measures are being taken to improve the situation. In particular, exceptional restructuring provisions were taken at the end of 2001, to avoid these problems recurring and to help move Sephora and DFS towards profitability in the shortest possible time frame.

These measures were partially compensated by significant capital gains made in 2001. These include, in particular, the capital gain of 864 million Euros realised on the sale of Gucci shares at the beginning of September, on the eve of the international capital markets collapse. This capital gain also financed the group's investments in Italy (particularly Fendi) in their entirety.

AN ENCOURAGING START TO THE YEAR

Sales in the first two months of 2002 confirmed the success of our products, even after September's events. Sales were up by 9% compared to the same period last year, when growth was already on a strong trend (+13%).

Fashion & Leather Goods : record margin for Louis Vuitton

2001 demonstrated the enduring demand for this business group's products with progress from all our brands. Despite the difficult economic climate, operating income was up 9% compared to 2000, to reach 1,274 million Euros or double the results of 1998. Louis Vuitton, the global luxury superstar, once again achieved remarkable results, increasing its production capacity and improving its margins to reach record levels. The success of Vuitton, in the American market for example, sets it completely apart from its competitors; in 2001, Louis Vuitton saw growth of 19% in the US domestic market and 18% growth in the fourth quarter with 75% of this demand coming from local clients, while all its competitors saw demand fall, often sharply. Thanks to the acquisitions of Donna Karan and Fendi, the business group has consolidated these two brands, which have great international potential, into its accounts.

2002 is expected to be another good year, thanks to a number of favourable factors: production capacity in the Louis Vuitton workshops has reached the right level, growth in the store network, development opportunities for new products such as footwear, growing demand in the domestic US market and the emergence of new demand in Asia and Russia.

Outlook for 2002 : a significant rebound in results

Following an acquisition phase, which enabled it to build an unrivalled portfolio of luxury brands, LVMH will concentrate on organic growth, profitability and cashflow in 2002.

Faced with an uncertain economic climate, which could persist throughout 2002, LVMH will focus its efforts on the growth of luxury products, and particularly the progress of its greatest brands. Thanks to measures taken and accounted for financially in 2001 to face the difficult economic environment, as well as the priority given to cash-flow, LVMH is well positioned to face 2002 and benefit fully from any possible upturn in the market. As in previous crises, our broad geographical presence, the strength and complementarity of our brands and our exceptionally talented teams will enable the group to continue its development, gain market share and further advance the lead it has on all its competitors.

LVMH has fixed itself an objective to significantly increase operating income in 2002.

At the AGM on 15th May 2002, LVMH will propose the payment of a dividend of 0.75 Euros per share.

An interim dividend of 0.22 Euros per share was paid on 4th December 2001. The balance of 0.53 Euros will be paid in June 2002.
8-3-2002
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