2002, an excellent year for LVMH
LVMH (Moët Hennessy Louis Vuitton), has reported an excellent year for 2002, after its operating income surged 29% to over Eur2 billion ($2.2 billion). This was on the back of a modest 4% increase in sales to Eur12.7 billion ($13.8 billion). The French luxury goods house predicts further improvements for 2003.
The company’s fashion and leather goods division performed exceptionally well in a difficult market, with its operating income increasing slightly by 0.4% to Eur1.29 billion ($1.4 billion). Louis Vuitton’s exclusive range of handbags achieved record sales levels for 2002, strengthened by the opening of seven new stores in the second half, notably the Tokyo Omotesando branch. Traditional products remained the key drivers, as did the Tambour watch, the Papillion bag and the Bob Wilson collection. This spring’s launch of bags by Japanese designer, Takashi Murakami, are expected to be big sellers.
LVMH says its strong profits were generated primarily by its wines and spirits division, where operating incomes rose 16%.
