LVMH anticipates further growth for 2001 after record profits in 2000

March 7, 2001 - LVMH, Moët Hennessy Louis Vuitton, the world's leading luxury products group, today announced a 27% increase in operating income to reach 1,959 million Euros on sales of 11,581 million Euros and a 15 % increase in net income from current group operations, rising to 846 million Euros for 2000.
The year 2000 demonstrated the strength of the Group's brands, its continued financial performance and its ability to deliver sustained growth. Net Group income was 722 million Euros, an increase of 4% compared to 1999 and of 170% compared to1998. Net income had risen by 160% in 1999, owing to significant exceptional items linked, in particular, to a gain resulting from the sale of part of the Diageo stake.
The Group's strong sales performance has carried over into 2001. Following an increase of 35% in 2000, sales for the first two months of 2001 increased 13% as compared to the same period a year ago.

Watch & Jewelry : making the first significant contribution to Group operating income

The performance of the Watch & Jewelry business group exceeded its targets (operating income: 59 million Euros); TAG Heuer confirmed its potential through very strong top range sports positioning and the success of its latest products. Chaumet has shown very good growth, especially in Japan. Ebel and Zenith have established a new brand strategy and improved organisation, particularly in distribution where they are now benefiting from the business group's powerful network.

From LVMH's Press Release