LVMH Jewelry and Watches Sales Sag
July 24, 03
While the company is reporting good performance, first half of 2003 numbers indicate otherwise. LVMH’s watch and jewelry group, for instance, generated 210 million euros, down from 255 million euros during the same period last year.
Sales of the group’s watches & jewelry brands were affected by destocking at the multi-brand stores. Christian Dior and Chaumet recorded good sales growth in the first half the company says.
Total sales by the luxury group were 5,238 million Euros in the first half, a 9.9 percent drop compared to the same period in 2002, but recording organic growth of 1 percent (organic growth is with a comparable structure and constant exchange rates).
The company blamed today the low sales figures on a weak dollar a significant reduction in tourism following the Iraqi war and the SARS epidemic.
The Louis Vuitton brand did well, notably in Japan and the US where the brand continued to record double-digit sales growth in the second quarter on a constant exchange rate basis.
LVMH forecasts better results in the second half of the year noting a more favorable environment, anticipating “a more normal environment in the first half of 2004, barring any geopolitical or other incident between now and then”.