PARIS, Mar 10, 2004/ FW/ --- While other fashion houses are lamenting over the loss of income in their couture operations, Christian Dior is celebrating an increase of 21% in their operating profit.

Last week, the venerable Paris fashion house released its financial statement reporting operating profit growth of 9 % to EUR 2,213 million, with Christian Dior Couture recording sales up 15 % on a constant exchange rate basis (6 % on current rates) to EUR 523 million and operating profit up 21 % to EUR 40.1 million.

The increase in sales meant great success across all product lines –Women, Men, Accessories- and for the strategy of developing the sales network, notably in the United States and Japan. The opening of 15 stores in 2003 has brought the own store network to 159 stores.

This performance was achieved in an unfavorable economic environment (Iraq war, SARS, weakness in both the Dollar and Yen, absence of a recovery in Europe) and is testament to the capacity of the Christian Dior Group to innovate and win market share.

After a good start to the year, with organic growth in January and February of 7 % at LVMH and over 15 % at Christian Dior Couture, the Christian Dior Group is maintaining its objective of tangible growth in operating profit for 2004.