LVMH has warned that its operating profit would slump a deeper-than-forecast 20% in 2001, despite saying that consolidated sales for the year ended 31 December increased 5% to reach a record €12.2bn. It said that it expected the market environment to remain difficult in the first half of 2002, but that operating income is expected to rebound materially in 2002, which limited damage to LVMH's share price.