LVMH announces 2001 sales up 5%, profits down 20%
Luxury goods group Moët Hennessy Louis Vuitton (LVMH) reported disappointing results for 2001 despite seeing sales rise 5% to Eur12.2 billion. ($10.78 billion). The company expects operating profit for the year to fall 20.36% to Eur1.56 billion from Eur1.959 billion last year. The overall growth in sales masked a 4% decline in travel related sales in the fourth quarter, which the company blamed on the September 11 tragedy.
The fashion and leather goods division reported sales of Eur3.6 billion in 2001, an increase of 13% compared to 2000. Sales for Louis Vuitton grew by 9% compared with 2000, including a 10% increase in December, performing particularly well in Japan, Europe and the US. LVMH also strengthened its brand portfolio by acquiring control of Fendi and Donna Karan during the year.
Toni Belloni, Group Managing Director, said: "We have adjusted quickly to a changing environment to maintain the competitiveness of our brands." He said he believed the results were good considering the global economic slowdown, adding that the company was now: "well positioned to strengthen our leadership in the global market for luxury goods".
