Louis Vuitton 2003 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2003 Louis Vuitton annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

4LVMH ANNUAL
REPORT 2003
some examples. All of these launches will
be supported by strong communication
campaigns.
We will also continue to develop our worldwide
distribution network. Louis Vuitton, which
celebrates its 150th anniversary this year, has
just opened its largest store in the world, in
New York. We will further accelerate our break-
through into new growth markets and regions:
China, where the economy is booming, is a
market with considerable potential for cognac,
fashion and perfumes. Russia also holds pro-
mise, notably for Sephora, which has already
been very successful in several Central and Eas-
tern European countries. In India, Louis Vuit-
ton will consolidate its position, after having
opened its first store last year, being a pioneer
in this country as it was in Japan at the end of
the 1970s.
These initiatives and developments are already
well underway, allowing us to face the months
ahead with confidence. Our outlook is further
strengthened by the quest for excellence sha-
red by everyone involved with the Group. With
these factors in mind, LVMH has set itself the
target of significant increase in operating
income for 2004.
Bernard Arnault
Chairman and CEO
The uncertain level of the US Dollar, which
has weakened further since the start of the
year, remains a challenge. In order to limit its
impact, we actively manage the fluctuations
through a dynamic currency hedging strategy.
In the meantime, our leading brands – whose
appeal and unique quality is a material asset
– have the ability to adjust their prices as
appropriate. Finally, the geographical balance
of our sales is another advantage – witness,
for example, the strengthening of the Yen
against the Dollar, which benefits the pur-
chasing power of Japanese travellers in Pacific
tourist areas.
We are pursuing a strategy that has proven its
effectiveness year after year: priority on the
development of our leading brands and those
with proven potential, rigorous financial dis-
cipline, focus on cash generation, continued
exit from non-strategic activities, and the
reduction in gearing which was at 57 % in
2003 and which we aim to reduce to around
50% by the end of 2004.
2004: A NEW YEAR OF GROWTH
We have excellent growth drivers for the year
ahead. We continue the strong, innovative
momentum with a number of new launches:
new leather goods products such as the Damier
Geant line, the Théda bag and an entire jewelry
line at Louis Vuitton, a new perfume for women
at Dior, a new fragrance for men at Guerlain,
an array of watch and jewelry creations, and the
new Ellipse Cognac from Hennessy are just