Sales in European markets accounted for 43 per cent of sales, Europe remaining the Group's most important geographic region. The good performance in the region reflects both the strength of the Group's principal Maisons in their home markets and signs of a recovery in terms of tourist numbers in some countries. At constant exchange rates, full year sales in France and Italy increased by 11 per cent and 8 per cent respectively, whilst sales growth in the United Kingdom, which has seen a number of years of good growth, slowed to 2 per cent.

Sales in Japan increased by 3 per cent, with growth driven by Cartier and the specialist watchmakers. The Japanese market continues to grow, despite economic factors that have slowed its development in recent years, such as weaker exchange rates, demographic changes and the lack of growth in the broader economic environment. Sales in the Asia-Pacific region increased by 20 per cent. It should be noted that sales in the first quarter of the comparative year suffered from the adverse effects of SARS on tourism, but sales in the important pre-Christmas quarter, unaffected by the crisis, were up 16 per cent at constant exchange rates. At constant exchange rates, sales in Hong Kong and China increased by 32 per cent and 44 per cent, respectively.

The Americas region reported underlying sales growth of 14 per cent in constant currency terms, reflecting the strength of demand in the USA and double-digit growth from the Group's jewellery Maisons and specialist watchmakers. At actual exchange rates, sales in euro terms increased by 7 per cent.