Reported by Star-Bulletin staff & wire
Tuesday, March 17, 1998
Duty Free parent firm profits despite Asia
PARIS -- LVMH Moet Hennessy Louis Vuitton SA, the luxury-goods company and parent of the Duty Free Shoppers business in Hawaii, said second-half 1997 net rose a larger-than-expected 32 percent though it warned problems in Asia would weigh on 1998 results.The maker of Dom Perignon champagne and Louis Vuitton leather handbags said second-half profit rose to 2.828 billion French francs ($464 million), or 32.5 francs a share, compared with 2.143 billion francs, or 24.74 francs a share in the year-earlier period.
LVMH is especially vulnerable to slowing Asian economies as it makes 50 percent of its sales in that region.
The company's sales fell 5 percent in the first two months of this year compared with the year-earlier period because of a 20 percent decline at DFS Group Ltd., its duty-free shops.
LVMH is now trying to make DFS less dependent on Asian tourism. It's handing over its fragrance retailing unit, Sephora, which operates mainly in France, to DFS. DFS, in turn, is going to open Sephora shops this year in Honolulu, New York City, San Francisco, Miami, Chicago, and Los Angeles.
Burger King to offer 99-cent menu items
NEW YORK -- Burger King is making seven popular menu items available nationally for under a dollar.Burger King, the second biggest fast-food restaurant chain, this week is introducing its 99-cent "Great Tastes" menu with a new advertising theme, "It just tastes better."
Fast-food companies have often offered select products for 99 cents for limited periods. But a Burger King spokesman said the Miami-based company plans to make its 99-cent items permanent. The items include two hamburgers, chicken, fries and a shake.
In other news . . .
CHICAGO -- Telephone company Alltel Corp. is buying cellular phone service provider 360 Communications Co. for about $4.1 billion in stock, creating one of the nation's largest wireless communications carriers.