LVMH 2008 Sales Rises 4 percent

LVMH 2008 Sales Rises 4 percent - But a 2 percent decline at constant exchange rates

Rapaport reports that LVMH Moët Hennessy Louis Vuitton reported that its 2008 sales rose 4 percent to EUR 17.2 billion ($22 billion). At comparable exchange rates, the company saw sales growth of 7 percent. Group profits, although nearly flat from 2007 at EUR 2 billion ($2.6 billion), set a new record for the luxury goods company.

The watches and jewelry category rose 6 percent to EUR 879 million ($1.1 billion), but experienced a 2 percent decline at constant exchange rates. Operating profits fell 16 percent to EUR 118 million ($151 million), the steepest decline of all of the company's sales categories. LVMH reported a noticeable drop in jewelry sales during the fourth quarter due to weak sales in the U.S., but "good performance in Europe and Asia compensated in part for the slowdown in the American and Japanese markets."

Bernard Arnault, chairman and chief executive officer (CEO) of LVMH, said, "The 2008 results demonstrate the exceptional reactivity of our organization in this period of economic crisis. The group has always emerged stronger from previous economic downturns thanks to the dynamic innovation of its brands, the quality of its products and the effectiveness of its teams. LVMH approaches the challenges and the opportunities of 2009 with confidence and determination and has set the objective of increasing its leadership position in the worldwide luxury goods sector."