PARIS, Apr 10, 2004/ FW/ --- Watches and Jewelry, which had been experiencing a deflated market worldwide showed the strongest organic growth at LVMH for the first quarter of 2004, reporting a whooping increase of 30%.

This week, LVMH Moët Hennessy Louis Vuitton reported an overall 10% sales growth, an aggregate of 5 divisions – Wines & Sprits, Fashion & Leather Goods, Perfumes and Cosmetics, Watches and Jewelry and Selective Retailing.

Wines & Spirits delivered a 19% increase during the first quarter. The Moët & Chandon, Veuve Clicquot and Dom Pérignon champagne brands performed remarkably well during the period with particularly strong sales in the United States, the United Kingdom and Japan. Hennessy’s strong sales growth continued in the United States, Russia and in Asian markets.

The Fashion & Leather Goods division reported a 7% growth. Louis Vuitton continues to be the star brand, achieving double-digit organic sales growth in the first quarter of 2004. The brand once again delivered exceptional results compared to its competitors, with a spectacular performance particularly in the United States and in Asian markets.

The new collection of Damier Géant luggage and the new products created by Marc Jacobs, such as the Theda bag in Multicolore fabric, made a hugely successful debut in Louis Vuitton stores. In February, Louis Vuitton opened its largest store in the world on 5th Avenue in New York.

Donna Karan continued to focus on the selectivity of its distribution by limiting its presence to only prestige outlets and reducing the number of its licenses, which explains the expected significant reduction in sales in the quarter. The Group’s other fashion brands performed satisfactorily during the first quarter, especially in Asia.

Within Perfumes & Cosmetics, which posted a 7% organic growth, Christian Dior continued to increase sales during the quarter driven mainly by the success of its make-up products. Its performance was particularly remarkable in Japan and China.

Guerlain sustained its momentum and benefited from the successful development of its new perfume L’Instant. In addition, the BeneFit Cosmetics and Fresh brands recorded double-digit sales growth.

Watches & Jewelry delivered strongest organic sales growth during the first quarter of 2004 (+30%), confirming its rebound that began during the summer of 2003.

TAG Heuer and Zenith recorded double-digit sales growth compared to the same period in 2003. Chaumet and Montres Dior experienced sustained growth.

In Selective Retailing, DFS benefited from a tourism revival in Asia’s popular tourist destinations and posted a rise in US dollar sales during the first quarter of 2004. Sephora accelerated its progress in Europe notably as a result of its highly innovative initiatives. In the United States, the brand continued to record strong double-digit sales growth on a comparable store basis