DALLAS, Jul 31, 2004/ FW/ --- Christian Dior continues its positive financial performance reporting €274 million sales for the second quarter of 2004, representing an increase of 20% at constant exchange rates and 16% at current exchange rates.

At current rates, the increase is 26%, a record high for the Group. Consolidated sales for the Christian Dior Group reached €5,943 millions during the First Half of 2004. This translates to 19% organic sales growth for the second quarter and 14.3% organic sales growth for the first half of the year overall.

Dramatic increase in sales in Asia and the U.S. amounting to €138 million facilitated the impressive financial performance. This encouraging trend was seen in all geographic regions, including Europe.

Prospects for the second half of the year remains optimistic for Christian Dior. With the launch of three new colognes by Hedi Slimane for Dior Homme - Eau Noire, Cologne Blanche and Bois D’Argent, (see top photo), the Group is expected to expand its market share in the very lucrative men’s scent arena.

This summer, Christian Dior is also launching “Pure Poison,” a new fragrance for women. It will be introduced first in the U.S. and then Europe.

A new addition to the Christian Dior family of scents for women, Pure Poison is a positive add on to LVMH’s Perfumes and Cosmetic Division which posted a 7% organic growth for the first half of 2004.

With rave reviews for both John Galliano’s haute couture collection and Hedi Slimane’s Dior Homme collection during the recently concluded Paris seasons, it will not be a surprise if the fashion division surpasses its current positive sales growth.

John Galliano presented a European royalty-inspired collection that instantly became museum pieces the moment it hit the runway. Choosing red, the traditional color of the royals as the main color palette, Galliano dressed his queens and princesses in curvaceous mermaid silhouettes adorned with diamonds, dripping diamantes, chandelier earrings, necklaces worth a king’s ransom, coronets and tiaras --- everything a young girl dreams of when she reads Cinderella.

The “teddy girls meet flapper girls” inspired collection he showed last March will hit stores this fall. With its beautiful fabric mixing and a pattern picnic with animal prints that is both delightful and fresh, and arrays of plastic Dior bracelets and the new bag, will surely see Christian Dior’s economics continue to rise up the grid scale.

Hedi Slimane’s Fall 2004 menswear collection that will also be in store shelves soon is expected to be a hit with the youthful crowd. Rock & roll inspired, Dior Homme’s V-neck sweaters and turtlenecks, reworked bomber, slim long sleeve shirts often with tone on tone stripes achieved through fabric thickness and shoe runners, are already being anticipated by the iconoclastic designer’s cult following.