News The world's leading luxury products group LVMH Moët Hennessy Louis Vuitton saw its 2002 operating profit increase by 29%, to 2,008 million euros, on sales of 12.69 billion, up by 4% (8% at constant exchange rates). Net profit meanwhile rose to 556 million euros, after only 10 million in 2001, a financial year weighed down by provisions, particularly for the restructuring of DFS (duty-free shops) and Sephora (perfumes). One year previously, net profit was 722 million euros. Special mention should be made of the fact that all of the group's sectors of activity showed an improvement in terms of profitability, with only one exception: watches and jewellery, currently in a phase of investment, for which net profit peaked at 13 million (27 in 2001).
Commenting on these results, group CEO Bernard Arnault brushed aside "sectoral generalizations that mean absolutely nothing" and spoke highly of the quality of LVMH brands, including some very profitable ones such as Louis Vuitton, regarded as "out of this world". He also paid tribute to his group's performance in 2002 against a background of consumer stagnation and a falling dollar, with only a slow recovery in tourism. He also pointed out that during the first two months of 2003, LVMH sales had remained steady, recording organic growth of 7%. Turnover had however suffered from a more negative exchange rate than in previous months. Bernard Arnault refused however to disclose the detailed forecast that LVMH "has in mind" for its 2003 operating profit, as this would be "too risky". He nevertheless explained that the group had prepared its estimates bearing in mind "rather weak global growth of the economy" and a dollar that would experience neither a "spectacular rise", nor a "collapse".
March 27, 2003
