NEW YORK -- Luxury products company LVMH Moet Hennessy Louis Vuitton reported Thursday 1989 profits of $508 million, or $39.73 a share, on revenues of $3.4 billion.
The Paris-based company which distributes worldwide luxury items including Louis Vuitton luggage, Moet & Chandon champagne, Hennessy cognac and Dior perfumes, said its 1989 revenues were up 19 percent from 1988 levels, while net income rose by 46 percent, and earnings per share by 32 percent.
The company which trades over the counter in New York, released its 1989 financial results in both French francs and U.S. dollars, and said it used a conversion rate of 5.774 francs to the dollar for the year.
LVMH said sales in its champagne division rose 6 percent in 1989 to $893 million, cognac and spirits were up 24 percent to $878 million, luggage and leather goods were up 33 percent to $814 million, and perfumes were up 19 percent to $773 million.
The company said its profits for the year which grew by a record average 46 percent, were led by a 50 percent increase in the cognac and spirits division, boosted by higher sales in Japan.
'With a 50 percent increase in operating income in 1989, cognac for the first time became the largest contributor to the group's income from operations,' LVMH said.
Profits at the champagne division, which includes the exclusive Dom Perignon brand, were up 19 percent, while they were up 34 percent in the luggage division, and up 16 percent in the perfume division.
