The French “Tribune” reported that LVMH Holdings announced that Dior’s shares fell 0.76% to 44.46 euros on the Paris Exchange on Monday. Fashion’s annual performance has been disappointing, and the outlook for 2009 is unclear. In 2008, Dior Group’s fashion net income fell by 9.5% to 796 million euros; normal operating profits and losses maintained a steady growth of 0.3%, to 3.621 billion euros. Sales in the same period increased by 4% to 17.9 billion euros, with organic growth of 7%. Revenue in the fourth quarter of 2008 was 5.4 billion euros, an increase of 3%.
Reportedly, CM-CIC analysts believe that Dior Group’s fashion performance is disappointing from all angles. In 2008, fashion turnover dropped by 3%. Business activities are still active in Europe, the Middle East, and China. However, affected by the economic crisis, sales trends in the United States and Japan are evolving. CM-CIC analysts said that it is obvious that the Dior Group must strategically consider improving the Dior brand by providing more “high-quality products” in order to achieve turnover and profitability.
According to reports, the Dior Group’s normal operating profits and losses fell by 88% in 2008 to 9 billion euros, including related network expansion costs and supply chain redesign. This global project is improving the company’s profitability. In 2009, due to the difficulty in judging the scale and duration of the current economic crisis, the Dior Group continued to strictly manage the entire enterprise and set its focus on the global luxury goods market. However, CM-CIC analysts pointed out that in 2009, Dior Fashion has no clear goal to regain profitability. The press announcement simply points to increasing organizational flexibility and continuing the strategy of developing symbolic high-end products.
