PARIS, Jul 29, 2005/ FW/ --- Luxury goods are going strong during the first half of the year and LVMH is on the frontline reporting a 12% sales growth.

On a financial release last Monday, Paris-based LVMH reported consolidated sales of 6,173 million euros, an increase of 12% compared to the same period last year.

The strong growth was very apparent during the second quarter wherein the company filed a 19% in sales.

According to the statement, Asia and Europe showed the biggest growth, followed by U.S. In terms of product lines, Watches and Jewelry, together with Selective Retailing showed the most promise, registering 15% increase.

Fashion & Leather Goods, together with Wines & Spirits, the stronghold of LVMH came in strong with a 12% increase, while Perfumes & Cosmetics trailed at 8%.

The Christian Dior Group, a division of LVMH that reports its financial statement separately posted an organic growth in consolidated sales (Euros 6,465 million) of 12% in the first half of 2005.

First and second quarter growth are almost the same, registering at 11% and 12% respectively.

These figures are in line with the reported 12% growth in Fashion & Leather goods, the specialties of the Christian Dior Group.

Listed as a star performer for the Watches & Jewelry category is TAG Heuer, which kept the registers brisk in the U.S. and Asia. Zenith and Chaumet, also recorded strong sales growth across all its markets.

With tourism back, DFS of LVMH Selective Retailing category continues to gain momentum in Asia. Together with Sephora that delivered good performance in the U.S., Selective Retailing posted 15% sales increase for the first half of the year.