LVMH's unprofitable Fendi business is looking to make sales of €600m (US$706.1m) by the end of 2007, according to a report by Agence France Presse.

AFP cited an interview in which chief executive Michael Burke said he wanted Fendi to be in a similar position to that of the Dior label a few years ago.

Burke, ex-chief operating officer for Christian Dior Couture - also an LVMH unit - said the company would concentrate on increasing existing stores' turnover rather than on opening new stores.

Burke revitalised the fortunes of Dior before joining Fendi as chief executive in 2003.

Fendi, which specialises in leather and fashion goods, opened a new flagship store on New York's famous 5th Avenue this week.