ITALY. LVMH Möet Hennessy Louis Vuitton has confirmed it is to stop selling its Fendi Palazzo women’s scent, just 18 months after the relaunch of the group’s Fendi fragrance business, according to Women’s Wear Daily (WWD).
Fendi Palazzo – the brand’s sole fragrance – was introduced in summer 2007 at a major press event in Rome. Gabriella Scarpa, Country General Manager for LVMH Perfumes and Cosmetics in Italy, said that sales had been “encouraging, but didn’t meet expectations”, WWD reported.
The Palazzo fragrance went on-counter in 1,500 doors in the US, Canada and Europe in September 2007, before rolling out to Asia in 2008.
Palazzo was Fendi’s first key fragrance introduction in collaboration with the company’s distribution partner, Christian Dior Perfumes and Cosmetics. All existing Fendi fragrances had been removed from the market after the end of the brand’s beauty licensing agreement with Gucci Group’s YSL Beauté division in 2005.
LVMH recently revealed a solid set of annual results for 2008, with its Perfumes & Cosmetics division posting organic revenue growth of +8%. Profit from recurring operations reached €290 million. The current operating margin reached 10%.
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