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Women's News Page 6
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Consumer Sales are Strong but Autos are slowing down
WASHINGTON -- U.S. retail sales up at a rate nearly triple expectations and giving reassurance of economic strength. Retail sales increased by a seasonally adjusted 2.3% after rising a downwardly revised 0.4% in December, the Commerce Department said Tuesday. Sales were originally seen 0.7% higher during December.

The broad-based January increase, with sales up in nearly every category, was the biggest since May 2004, when demand also rose 2.3%. The median estimate of 21 economists surveyed by Dow Jones Newswires and CNBC was a 0.8% increase in January retail sales, a closely watched gauge of how people in the U.S. spend money.   Consumer spending is a pivotal part of the equation used to figure out how the economy is faring. Spending makes up about two-thirds of gross-domestic product. Americans curbed their spending in the fourth quarter, leading to a sharp slowdown in overall economic growth amid higher energy prices and mortgage rates and plunging car sales. GDP climbed only 1.1% October through December, after advancing 4.1% in the third quarter. But economists think growth will be stronger in the first quarter.              Retail Sales Continued below
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Retail Sales Continued
January auto and parts sales rose by 2.9%, after climbing 1.2% in December. But
demand rose strongly outside autos. Excluding the car sector, all other retail sales increased by 2.2% in January -- the largest climb since a 2.5% gain in that category during December 1999. Economists expected sales outside the car sector to rise just 0.7%. Sales excluding autos rose 0.2% in December.
ales last month rose 1.4% at health and personal care stores; 0.2% at food and beverage stores; 3.2% at restaurants and bars; 1.5% at sporting goods, hobby and book stores; 2.0% at electronics and appliance stores; 2.1% at general merchandise stores; and 3.4% at building material and garden stores.
And the Good News is, Sales rose 4.2% at clothing stores, the biggest advance  since a 5.2% move up in October 2002.
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This next week is an unwritten book, you will author whatever goes into it.
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 . . . Features

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Fashion Week
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Serena Williams
Flirt Cosmetics

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WomensWear at the
Las Vegas Rio

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WWDMAGIC Show
in Las Vegas

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Consumer Sales
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Project Runway
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Women's Wear Page 6

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Women's Wear News
2005
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LVMH Posts 15% Rise in First Quarter Sales
By Godfrey Deeny
April 20, 2006 @ 12:51 AM - Paris

Luxury’s largest conglomerate, LVMH, posted a striking 15 percent rise in first quarter sales, as its wines and spirits, and watches and jewelry divisions led the robust growth.

Total revenue grew to 3.555 billion Euros (or $4.337 billion at current exchange rates) in the opening three months of 2006, from 3.086 billion Euros ($3.765 billion) a year earlier, as the bell weather group for the luxury industry showed that consumers worldwide continued to be highly attracted to quality name brands.

In a release, LVMH pointed to several optimistic factors looking ahead: less unfavorable monetary environment, strong growth in the American and Asian economies, and some European markets recovering. “All of these elements allow us to confirm the objective of a very significant growth in the Group’s results for 2006,” LVMH said.

Wines & Spirits grew by 23% to 632 million Euros ($771 million), where a punchy 10% growth in volume of champagne sold was backed up by a sustained pricing policy. The burgeoning Chinese market also saw Hennessy “make exceptional progress in Asia, notably in China,” LVMH added. LVMH also controls Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Chateau d'Yquem, Chandon Estates, Hennessy, Glenmorangie, Belvedere and Chopin.

Fashion & Leather Goods revenue grew advanced 14 % over the quarter to 1.296 billion Euros ($1.581 billion), led by Louis Vuitton, which again posted double-digit organic growth.

Fendi continued its rapid expansion and its leather goods revenue grew strongly over the period, LVMH insisted, without however, releasing any exact figures. LVMH does not break out individual brands’ sales performances, and does not release profit and loss figures with its quarterly results.

The Paris-based group added that the new Spy range and the B.Fendi collections from the Rome-based label “are two examples of the brand’s excellent potential and improvements in the distribution network continue.”

LVMH controls some ten fashion labels, including Celine, Loewe, Kenzo, Givenchy, Thomas Pink, Emilio Pucci, Donna Karan and Marc Jacobs, but limited its commentary on these houses to saying that “the group’s other brands enjoyed a very good start to the year.”

Perfumes and Cosmetics grew by 18% to 597 million Euros ($728 million), as Parfums Christian Dior recorded an “extraordinary success” with Capture Totale, the skincare range modeled by a brightly blonde Sharon Stone.

In perfumes, Guerlain benefited from an “excellent launch” of its new Orchidée Impériale skincare product; Parfums Givenchy revenue was driven by ‘vintage’ expressions of its Organza, Amarige and Very Irresistible lines; and BeneFit Cosmetics recorded another period of double-digit revenue growth.

Watches & Jewelry had an excellent start, posting 23 % rise in sales to 150 million Euros ($183 million), buoyed by strong sales at Basel, the giant watch fair that is the world’s biggest, which took place last month. Basel saw the launch of the latest models from TAG Heuer, Zenith and Montres Dior, resulting “in a marked increase in orders.”

LVMH one less than stellar performance was in its Selective Retailing division that advanced 9% to 895 million Euros ($1.091 billion). The group’s DFS duty free boutique chain was supported by the continued rapid growth in Chinese tourism. Sephora, the well-located beauty and scents chain, grew market share in France, and achieved double-digit revenue growth on a same store basis in the US.

“Increasing market share and the profitability of our leading brands as well as improving the performance of our developing companies and cash generation, remain LVMH’s top priorities,” LVMH insisted.

 

EBay is talking to both Yahoo and Microsoft about the possibility of working together to thwart growing competition from Google. The talks could result in an alliance in which eBay would increase ad spending with its chosen partner and provide consumer data.

NEWS ALERT
from The Wall Street Journal

April 25, 2006
President Bush said he plans to temporarily halt deposits to the strategic petroleum reserve in an effort to relieve pressure on gas-pump prices, which are edging toward $3 a gallon nationwide. Bush also set steps to ease environmental standards governing fuel grades.