News LVMH, Moët Hennessy Louis Vuitton, the world's leading luxury products group, announced that consolidated sales for year ended 31 December 2001 increased 5 % to reach a record 12.2 billion Euros. This growth, following the 35 % increase in 2000, was even more remarkable for being achieved in a challenging economic and political environment.
Sales in the fourth quarter declined by 4 % following a dramatic decline in travel related sales as a result of the September 11 tragedies and the growing weakness of the yen. There was however, progressive improvement during the quarter. October sales were - 6 % versus year ago, November - 5 % and December 2001 matched the record levels of previous year. While tourist-driven markets were weak, sales to local consumers in the US, Western Europe and Japan continued to grow.
The Watches & Jewelry business group recorded annual sales of 539 million Euros, a decrease of 12 % compared to 2000. Its performance is principally due to the strategic decision to terminate production and sales on behalf of third party brands outside the group. Sales of LVMH's own brands reached 517 million Euros, in line with previous year. These brands (TAG Heuer, Ebel, Zenith, etc) made progress in all regions compared to 2000 except the US. The reorganisation of this activity and its international distribution network in 2001 as well as the optimisation of the strategies of each brand provide a solid base for future growth.
February 14, 2002
