Luxury Goods Group LVMH Sees Sales Slip in 2003

LVMH Moet Hennessy Louis Vuitton, the largest luxury products group in the world, posted a one percent decline in sales for the fourth quarter of 2003 compared with the year-earlier period and a six percent fall for all of 2003 compared with 2002.

Sales last year slipped to €11.962 billion from €12.693 billion a year earlier. The company did not publish sales figures in euros for the fourth quarter.

LVMH said organic growth – expansion which is not based on growth from takeovers, acquisitions, or mergers – increased by eight percent in the fourth quarter on a year earlier which saw a one percent decline. For the full year, organic growth fell by six percent compared with a rise of four percent in 2002.

Sales of jewelry and watches slipped by one percent in the fourth quarter and dropped by nine percent for the year. Based on organic growth, sales rose nine percent in the fourth quarter and were unchanged for the full year.

LVMH said its jewelry and watches group confirmed its return to growth which began during the summer. TAG Heuer, Montres Christian Dior and Chaumet all realized double digit sales increases on a constant exchange rate basis over the period. 

LVMH said its fourth quarter performance was notable since it compared with the fourth quarter of 2002 which had also risen strongly over the same period of 2001.

The group said its Louis Vuitton unit in particular had an outstanding performance reinforcing its leadership in the luxury market and recording double digit organic growth for the quarter.

The LVMH group has a wide range of interests, including wines and spirits, fashion and leather goods, perfumes and cosmetics and watches and jewelry.