LVMH, Moët Hennessy Louis Vuitton, today announced group sales for the month of October of 1.113 billion Euros, a decrease of 5% compared to the previous year (-3% on a constant currency basis). The consequences of the events of 11th September continue to have a serious impact on the global luxury goods market. Signs of improvement are, however, gradually appearing in some European countries, in Asia and in Japan, at the local client level. Nevertheless, the sharp reduction in travel became even clearer in October and had a considerable effect on sales to tourists in most countries. In view of this negative trend, LVMH now considers that it will not maintain levels of operating profit achieved in 2000. The extent of the reduction in operating profit will obviously be determined by how the economic climate evolves in the last two months of the year, but should be between 10% and 15%.
Faced with this situation, which is difficult in the short term, the group is focusing its efforts on strengthening its prestigious brands and accelerating initiatives seeking to reduce structural costs and improve profitability. At the same time, the emphasis on the fundamental values of the group, such as the quality and innovation of its products, notably underpinned by sustained investment in advertising and promotion will enable LVMH to further its position of global leadership in luxury goods.