Obscene Green for the Luxury Goods Industry:

French luxury goods powerhouse LVMH does, having just announced record 2004 sales of $16.39 billion.

Organic growth was up 11% over 2003. The estimated growth in operating income, pending the release of audited results in March, stands at 10%.

While reported sales in the Watches & Jewelry and Perfumes & Cosmetics sectors were down 1% each, sales at Wines & Sprits and at Fashion & Leather Goods were up 8% and 5% respectively in real terms. In the latter category, Louis Vuitton was the acknowledged cash cow, according to an LVMH release recording its best-ever weekly sales during the Christmas week as part of an “exceptional performance” in 2003, raising Fashion & Leather Goods sales to €4.367 billion ($5.68 billion).

The report went on to note, “2004 was highlighted by a host of new leather goods products, created by Marc Jacobs, for which demand is so strong that it still cannot be fully satisfied, and by the launch of Louis Vuitton’s first jewelry line, which met with instant success. Louis Vuitton also opened several stores during 2004 on every continent. In addition, the year saw the emergence of several high-growth potential brands such as Marc Jacobs and Pucci.”

The Selective Retailing sector registered particularly high growth of 11%. “In the United States, for the fourth year in a row, sales growth on a comparable store basis was in double digits” for Sephora.

Posted by Lawren at January 21, 2005 06:25 AM

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