Text 2. LVMH reports strong sales

LVMH (Louis Vuitton, Moёt Hennessy) manufactures and sells luxury goods, such as designer clothers, fashion accessories, perfumes and cosmetics, watches and jewelry. There are several companies in the group. LVMH has 60 famous brands, such as Louis Vuitton, Civenchy, Kenzo, Christian Dior and Donna Karan. It has 1.500 stores worldwide and is expanding its network. It employs 56.000 people. Its head office is in France, but 63% of its staff work outside France.

Sales at its Louis Vuitton division rose 22% to €1.175bn ($ 1/26bn) in the fourth quarter. Total sales at the LVMH group rose 4% to €12/7bn last year. Bernard Arnault, chairman, said that the fashion and leather goods division of LVMH made “excellent progress”.

LVMH had excellent sales because of its strong brands, store openings and successful new product launches. One of its new products, the Tambour watch, did not have huge sales but it brought customers into the stores.

Sales in the US, France and Japan were good. Fewer Japanese tourists travelled last year, but they bought more goods in their home market. Recently, LVMH opened a large store in Japan, which is doing well.

LVMH is a creative and innovative group. It aims to impress its customers with its high quality and long-lasting products. Its new products – particularly in cosmetics – depend a lot on research and development. LVMH controls every detail of the brands’ image.

1. Which of the following were reasons for the increase in LVMH’s sales?

a) well-known products c) better research

b) new stores d) new products

2. How did the launch of the Tambour watch help LVMH?

3. In which markets did LVMH sell a lot of products?

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