July 10, 2001
LVMH's First-Half Sales Up 12%
LVMH Moet Hennessy Louis Vuitton, the French luxury products group, announced its consolidated sales in the first half of 2001 increased 12% compared to the first half of 2000. Second-quarter sales for the group also increased 12%, despite a less favorable economic climate than that of the second quarter of 2000 when sales jumped 40%.
Sales for its watch and jewelry group were nearly stable, with a 3% decrease in the first half. LVMH attributes the watch and jewelry group's performance to the termination of some manufacturing licenses for non-group watch companies and slower growth in the U.S. economy. The watch and jewelry group's reorganization is well underway, LVMH reports, and advertising campaigns are producing excellent results, especially for Zenith watches. Chaumet and Benedom, with the new Chris 47 Dior watch, also recorded strong sales growth.
LVMH maintains its double-digit growth targets for sales and operating profit for the full year. First-half operating results will be published on Sept. 13.
- by Julia M. Duncan