LVMH Issues Group Sales for October

LVMH Moet Hennessy Louis Vuitton, Paris, owner of brands such as Donna Karan, Parfums Christian Dior, BeneFit Cosmetics and Urban Decay, announced group sales for October were $995.9 million, a decrease of 5% from the previous year.

The consequences of the events of Sept. 11 continue to seriously impact the global luxury goods market, executives said. The sharp reduction in travel had affected tourist sales in most countries. Signs of improvement are appearing in some European countries and in Asia and Japan at the local client level. LVMH executives said the company will not maintain levels of operating profit achieved in 2000, and are estimated to decrease 10-15%.

LVMH said it will focus its efforts on strengthening its prestigious brands and accelerating initiatives that reduce structural costs and improve profitability.