PARIS — In another sign of an ebullient climate for luxury, the Christian Dior fashion house said its July and August sales vaulted 16 percent in its network of 184 stores.
“The trend is excellent in all areas,” Dior chief executive Sidney Toledano told WWD Thursday. “We are confident for the second half.”
Toledano cited strong reaction to John Galliano’s fall-winter ready-to-wear collection and said Dior’s new “Flight” range of handbags, shoes and men’s wear were all performing “extremely well.”
The Dior fashion house only quantifies its profits once a year, simply citing “sustained” — meaning flat — operating income in the first half owing to a significant number of boutique openings, including locations in Shanghai, Las Vegas, Osaka and Okinawa in Japan, São Paulo and Mexico City. Toledano said the profit picture would improve in the crucial second half.
Sales at Dior increased 10 percent in the six months ended June 30 to total 301 million euros, or $387.2 million at average exchange rates, led by dynamic growth in Asia and the United States in particular. Stripping out currency impact, the gain stood at 11 percent.
Meanwhile, Christian Dior SA, parent of luxury giant LVMH Moët Hennessy Louis Vuitton and the Dior fashion house, reported operating profits largely in line with the results LVMH released earlier this week. Profits totaled 1.1 billion euros, or $1.41 billion, up 11.3 percent from the same period last year.
The Dior group also gave an objective of a “significant” increase in operating profits for the full year.
This story first appeared in the September 9, 2005 issue of WWD. Subscribe Today.