Lacklustre third-quarter results prompt LVMH profit warning
Sales of leather and fashion goods by the French fashion group LVMH (Möet Hennessy Louis Vuitton) appear have borne the brunt of the downturn in consumer confidence in the wake of the US terrorist attacks.
The company said last week that sales growth for the group as a whole slowed to 8% in the third quarter of 2001 to Eur2.98 ($2.7 billion) while in the US the decline was even greater, at 15%.
Sales of fashions and leather goods suffered most in the aftermath of the September 11 attacks, falling by 5% during the month. And although quarterly sales were up by 11%, this still compared poorly with the 46% increase in sales registered during the same period in 2000. ]
Seeking to put a brave face on the figures, LVMH said that in spite of the softening market, sales were beginning to recover and that they had already reached the same levels as last year in New York. Japan was also continuing to register double digit sales growth, the company said, with almost all of the business group's other brands registering double digit growth in the third quarter. The figures prompted group chairman Bernard Arnault to issue a profit warning.
