Strong sales growth in first half 2005
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, reported consolidated sales of EUR 6,173 million in the first half of 2005, reflecting an increase in organic* sales of 12% compared to the first half of 2004. This sales growth accelerated in the second quarter of 2005, coming on top of a strong 19% increase in the second quarter of 2004.
Key points of first half 2005:
- Good sales growth across all business groups,
- Asia and Europe see strong sales growth and the US continues to progress well,
- Louis Vuitton continues to post double-digit sales growth,
- The Watches & Jewelry and Selective Retailing business groups record organic growth of 15%
- Market share gains across all brands.
By business group, sales performance was as follows:
|In million euros||First half 2005||First half 2004||Variation|
|Wines & Spirits||1 030||893||+ 15 %||+ 12 %|
|Fashion & Leather Goods||2 196||2 025||+ 8 %||+ 12 %|
|Perfumes & Cosmetics||1 034||971||+ 7 %||+ 8 %|
|Watches & Jewelry||260||232||+ 12 %||+ 15 %|
|Selective Retailing||1 675||1 493||+ 12 %||+ 15 %|
|Other activities and eliminations||(22)||(5)||ns||ns|
|Total LVMH||6 173||5 609||+ 10 %||+ 12 %|
* with a comparable structure and constant exchange rates
Wines & Spirits delivered organic sales growth of 12% during the first half of 2005. The champagne brands, particularly Dom Pérignon, Krug and Veuve Clicquot, showed strong growth across all geographic areas. Moët & Chandon achieved good levels of growth in Japan and Europe. Hennessy cognac strengthened its momentum with solid growth, particularly in the US and Asia.
In Fashion & Leather Goods, Louis Vuitton posted double-digit organic sales growth. After the Cerises line, the Denim and Antigua collections, which have just been launched, are already attracting waiting lists around the world.
The other fashion brands of the Group have also seen buoyant sales growth over the first half of 2005. Fendi continued its momentum and opened its new Fendi Palace boutique in Rome.
In Perfumes & Cosmetics, the good momentum of Parfums Christian Dior continued with sustained growth. The new perfumes, Pure Poison, Miss Dior Chérie, and the make-up and skincare lines, are showing strong growth.
L’Instant and the skin care products continue to support the growth of Guerlain.
With a 15% organic sales increase, Watches & Jewelry once again showed strong growth over the entire first half of 2005 after an excellent performance in 2004. The performance of TAG Heuer was particularly strong in the US and in Asia. Zenith recorded strong sales growth across all its markets. The momentum of Chaumet continues.
In the Selective Retailing business group, DFS continues to grow, particularly in Asia. Sephora continues to deliver good performance in Europe. In the US, sales growth is accelerating with, once again, a double-digit increase on a comparable store basis.
LVMH works to capitalize on its worldwide leadership, excellent geographical sales balance, its innovation policy, the quality of its products and the talent of its teams to accelerate its development in a growing worldwide market. Over the second half, LVMH will focus on developing market share for its leading brands and on a series of new product launches. The first half performance allows LVMH to confirm its objective of a tangible increase in operating income for 2005.