Strong growth in sales

The final quarter of the financial year saw acontinuation of the strong growth in sales ofluxury products seen during the first ninemonths

The final quarter of the financial year saw acontinuation of the strong growth in sales ofluxury products seen during the first ninemonths. Overall sales for the year grew by 16per cent at constant exchange rates. Theunderlying growth was offset by the weaknessof the dollar and yen such that sales at actualrates grew by 12 per cent over the full year.

For the year as a whole, all business areasperformed well and all geographic regionsshowed double-digit growth in sales atconstant rates, with the Asia-Pacific region growing by 24 per cent at constant rates.

Sales by business area for the year

Jewellery Maisons
Of the Group's Jewellery Maisons, Cartierreported double-digit growth at constant ratesin all regions with the exception of Japan,which saw modest growth. Van Cleef & Arpelsalso enjoyed very good growth in sales;products linked to the Maison's centenary in2006 and related communications activitycontributed to the strong performance.

Specialist watchmakers
High levels of demand continued in all regions,generating double-digit sales growth for theGroup's specialist watchmakers. Most notably,sales of both Panerai and A. Lange & Söhnegrew strongly during the year.

Writing instrument Maisons
Montblanc also celebrated its centenary during2006. Sales benefited from the specialcentenary products, the programme of eventssurrounding the anniversary and the launch ofthe new Montblanc female jewellery line,together with the development of its retailnetwork, which contributed 6 per cent to thegrowth in sales at actual rates. The Maisonperformed well in all geographic regions.

Leather and accessories Maisons
Alfred Dunhill reported double-digit growth atconstant exchange rates in the Asia-Pacificregion for the year, helped by the developmentof its retail network. However, sales in theimportant Japanese market were flat in localcurrency terms. Lancel reported a double-digitincrease in sales for the year at constant rates,reflecting growth driven by the success of itsnew products.

Other businesses
The growth in sales in the Group's otherbusinesses primarily reflects the furtherdevelopment of Chloé. Chloé's salesincreased by some 50 per cent at constantrates during the year, the Maison benefitingfrom the substantial increase in its retailnetwork. Exceptional growth in the first sixmonths was offset by more moderate growthin the latter part of the year, measured againsta higher comparative base.

Sales by geographic region for the year

Press release