Excellent Start to the Year for the LVMH Group; Organic Sales Growth for the First Quarter of 2005: +11%.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- LVMH LVMH Moët Hennessy-Louis Vuitton (upscale retailer) Moet Hennessy Louis Vuitton The Louis Vuitton Company (more commonly known simply as Louis Vuitton) is a luxury French fashion and leather goods brand and company, headquartered in Paris, France. It is a division of the French holding company, LVMH Louis Vuitton Moët Hennessy S.A. , the world's leading luxury products group, reported organic* sales growth of 11% in the first quarter of 2005, which comes on top of a 10% increase in organic sales for the same period in 2004. Consolidated sales were 3,082 million Euros for the first quarter 2005. The sales growth momentum since the beginning of the year is impressive with almost all business groups recording double-digit organic sales growth. For the first time LVMH is releasing quarterly sales under IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System with comparisons against the first quarter of 2004. By business group, the evolution was as follows:
In millions of Euros Variation
Q1 2005 Q1 2004 Q1 2005 / Q1 2004
IFRS IFRS Reported Organic*
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Wines & Spirits 510 430 + 19% + 13%
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Fashion & Leather Goods 1 135 1 067 + 6% + 10%
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Perfumes & Cosmetics 506 475 + 6% + 8%
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Watches & Jewelry 122 112 + 8% + 21%
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Selective Retailing 823 730 + 13% + 15%
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Other Activities & eliminations (13) (6)
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Total 3 082 2 808 + 10% + 11%
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* with a comparable structure and constant exchange rates. Wines & Spirits delivered organic sales growth of 13% during the first quarter 2005. The Dom Perignon Dom Perignon renowned vintage French champagne. [Western Cult.: Misc.] See : Luxury , Krug and Veuve Clicquot champagne brands performed very well. Moet & Chandon had a good start to the year in Europe. Hennessy enjoyed an impressive start as well, with strong sales growth in the US and Asia. Notably, China confirmed its growing potential as an important market for our brands. Following its acquisition at the start of the year, Glenmorangie contributed to the group's sales growth. In addition, the Group strengthened its range of premium brands and has just launched a new prestige rum brand, 10 Cane. In Fashion & Leather Goods, Louis Vuitton continued to achieve double-digit organic sales growth in the first quarter 2005. Growth for the brand continues in the US after an excellent 2004 and it has also enjoyed a good start to the year in Europe. A return to growth has been achieved in Japan and the Asian markets are progressing strongly, driven by growing tourism, notably from China. The start of the year was marked by the huge success of the new Monogram monogram [Gr.,=single letter], symbol of a name or names, consisting typically of a letter or several letters worked together. A famous monogram is that of Christ, consisting of X (chi) and P (rho), the first two letters of Christ in Greek. Cerises line which should continue throughout 2005. Among the other fashion brands, Celine, Marc Jacobs Marc Jacobs (born April 9, 1963 in New York City) is an American fashion designer. He attended the High School of Art and Design and graduated in 1981. Although he does not refer to this in most interviews, he attended nearby Teaneck High School for most of his High school years. , Pucci and Berluti all enjoyed a good start to the year and Fendi achieved double-digit sales growth in its stores. In Perfumes & Cosmetics, Parfums Christian Dior Parfums Christian Dior is the make-up and perfumery line of Christian Dior SA, based on the company created by twentieth-century fashion designer Christian Dior. It was created in 1947 with the launch of Miss Dior perfume. continued to grow well in the quarter, driven by the success of Pure Poison and its skincare products. Sales progressed across all regions, with accelerating momentum in Asia and Europe. Guerlain is maintaining its renewed momentum thanks to the continued success of l'Instant and of its make-up products. BeneFit Cosmetics recorded double-digit sales growth in dollar terms. Watches & Jewelry followed its strong progress in 2004 by recording strong organic sales growth of 21% for the first quarter 2005. TAG Heuer TAG Heuer (pronounced: täg-hoi-er) is a Swiss watchmaker known for its mid - high range sports watches and chronographs. It is a division of leading luxury goods company LVMH. The company motto is "Swiss Avant-Garde Since 1860". and Zenith grew at a double-digit rate despite a strong comparison period last year. Chaumet and Fred also had a good start to the year. The Group's brands did particularly well in the US, Asia and in France. The new collections unveiled at the Basel Watch Fair by TAG Heuer, Zenith, Chaumet and Dior Watches confirmed the creative potential of these brands and all enjoyed strong orders. In Selective Retailing, DFS (Distributed File System) An enhancement to Windows NT/2000 and 95/98 that allows files scattered across multiple servers to be treated as a single group. With Dfs, a network administrator can build a hierarchical file system that spans the organization's LANs and had a good start to the year in line with the momentum recorded in 2004 and benefiting from the continuing recovery in Asian tourism, which has been driven by the weak dollar. Sales over Chinese New Year Chinese New Year (Simplified Chinese: ; Traditional Chinese: ; Pinyin: Chūnjié), or Spring Festival also increased. Sephora continued to win market share in Europe and in France in particular, thanks to the excellent response to the brand's innovative services. In the US, Sephora continued to record double-digit sales growth on a comparable store basis for the first quarter 2005. Within an unfavourable monetary environment, the tourism sector has witnessed a sustained recovery and both the US and Asian economies are in full expansion. Against this backdrop, LVMH will continue to pursue growth in 2005 by taking advantage of the strength of its brands, new product launches and penetration of new markets. Increasing market share and the profitability of our leading brands, as well as improving the performance of our developing companies and cash generation, remain LVMH's top priorities. Progress in each of these areas enables the Group to confirm its objective of another tangible increase in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 2005. About LVMH LVMH Moet Hennessy Louis Vuitton is the world's leading luxury goods group. The Group is represented in Wines and Spirits by a portfolio of brands that includes Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Chateau d'Yquem, Chandon Estates, Hennessy, Glenmorangie, Belvedere and Chopin. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Celine, Loewe, Kenzo, Givenchy, Thomas Pink Thomas Pink is a retail clothing business which started in London in 1984. The concept was created by three Irish entrepreneurs, brothers James, Peter and John Mullen. The company was named for an 18th century London tailor who was known for making much sought-after red ('pink') , Fendi, Emilio Pucci Emilio Pucci, Marchese di Barsento (November 20, 1914 – 1992) was an Italian fashion designer. Fashion career Born in Florence, Italy, the son of an Italian marchese, Pucci studied in both Italy and the USA, eventually gaining a doctorate in political science in , Donna Karan Donna Karan is the fashion designer and the creator of the DKNY (Donna Karan New York) clothing label. She was born Donna Ivy Faske on October 9, 1948 in Forest Hills, New York. , Marc Jacobs, Berluti, StefanoBi as well as eLUXURY, the authoritative online source for luxury goods on the Internet. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy Parfums Givenchy (pronounced [ʒivɑ̃ʃi]) is a French brand of Parfums, Cosmetics (Make up and skincare). , Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing through DFS, Sephora in Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Le Bon Marche and La Samaritaine. LVMH's Watches and Jewelry division comprises TAG Heuer, Chaumet, Christian Dior Watches, Zenith, Fred, the prestigious Italian writing instruments company of OMAS OMAS Official Mail Accounting System (US Postal Service) OMAS Outage Management & Analysis System and De Beers LV, a joint venture created with the world's leading diamond group. "Certain information included in this release is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its wines and spirits, fashion and leather goods, fragrances and cosmetics, watches and jewelry, and selective retailing activities, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Company's businesses involve a number of important factors that are subject to change, as are mentioned under "Risk Factors" in the Company's Form 20-F for the year ended December 31, 2002 which is on file with the United States Securities and Exchange Commission". |
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