A strong euro combined with tough trading conditions to push down second quarter revenues at LVMH Moet Hennessy Louis Vuitton SA. The world's biggest luxury-goods player said today that revenue fell 2.7 per cent in the second quarter to 2.86 billion euros from 2.94 billion euros.

Second-quarter sales in the fashion and leather goods division, the group's biggest revenue generator, fell to 930 million euros from 1.09 billion euros in the first three months of the year.

For the first-half, revenue increased 2.3 per cent to 5.82 billion euros ($5.88 billion) from 5.69 billion euros, at the bottom end of a range of market forecasts.

However, the company said it is still on course to meet its 2002 full-year operating profit, earlier outlined by chairman and chief executive Bernard Arnault as "substantially above 10 over cent.".