2008 Executive Summary

Luxury
PRODUCTS
+0.7%
sales growth like-for-like in 2008
12
€4,169 million
in sales generated by the division
in 2008
An unrivalled range
of luxury cosmetics
The Luxury Products Division
has a unique portfolio of highly
complementary global brands,
enabling it to expand in the
three major luxury cosmetics
businesses: skincare, make-up
and fragrances.
In Western Europe, the division held onto its share
as the market leader while in North America sales
fell. In 2008, growth was driven by the Rest of the
World zone, particularly Eastern Europe, and by
excellent performance in Asia, the Middle East
and Latin America. Skincare was the most dynamic
category (+3.4% like-for-like) and make-up sales
continued to grow. The division should withstand
the market slowdown in 2009 thanks to the
integration of the YSL Beauté brands. In addition,
LANCÔME, as well as the division’s three big designer
brands–GIORGIO ARMANI, YVES SAINT LAURENT and
RALPH LAUREN–will continue to consolidate their
growth.
LANCÔME
World number 1 in the selective beauty market,
LANCÔME has continued its development and hit the
headlines with the unprecedented success of
Ôscillation, the first-ever vibrating powermascara.
A new era of creativity was ushered in with the artist
Aaron de Mey’s Pink Irreverence collection. The new
fragrance Magnifique made its mark in every
country across the globe as the number 1 women’s
fragrance launch of the year. The Rénergie line
reinforced LANCÔME’s position as an anti-ageing
skincare specialist with strong growth, particularly
in Asia.
GIORGIO ARMANI
GIORGIO ARMANI maintained growth, particularly in
Europe, in the travel retail channel and in Asia. The
brand confirmed its position as world leader in
men’s fragrances (Acqua di Gio and Armani Code
for Men). 2008 saw the successful launch of Emporio
Armani Diamonds for Men fragrance, which is in
the top 5 in the United States and in the top 10 in
Germany, Italy and Spain.