Tiffany & Co., Bulgari Drive Jewelry Growth for LVMH
LVMH’s jewelry and watch sales grew 25 percent in Q3, with Tiffany’s new “Lock” collection off to a “solid start” in the U.S.
Here are five important takeaways from the luxury titan’s most recent earnings report.
It was another solid quarter for LVMH.
LVMH put on a strong performance in the third quarter, reporting revenue growth of 27 percent year-over-year to €19.76 billion ($19.25 billion).
For the first nine months of the fiscal year, revenue was up 28 percent year-over-year to €56.49 billion ($55.05 billion).
That double-digit growth carried across every business category, with Tiffany & Co. and Bulgari standing out in its jewelry and watches category.
Sephora, part of LVMH’s selective retailing portfolio, recovered as store traffic increased, but its duty-free stores were still negatively impacted by health restrictions in key areas, including lockdowns in Hong Kong and Macao.
Jewelry and watch sales climbed double-digits.
Quarterly revenue in the watches and jewelry segment climbed 25 percent year-over-year to €2.67 billion ($2.6 billion).
For the first nine months, revenue in the category was up 23 percent to €7.58 billion ($7.38 billion).
LVMH’s jewelry portfolio includes Bulgari, Chaumet, Repossi, and Fred, as well as the recently acquired Tiffany & Co., which has boosted the category in the last few quarters.
Bulgari’s growth was driven by jewelry but the brand’s watches also performed well, said LVMH.
Bulgari held an exhibition in Shanghai, China, of its high jewelry and watch collection “Eden: The Garden of Wonders.”
Its “Bzero1” collection introduced more diamonds to its jewels.
The brand also announced that its manufacturing facility in Valenza, Italy, will be expanded alongside a high jewelry lab in Rome.
Bulgari is the subject of a new documentary on Amazon Prime called “Inside the Dream,” which follows Bulgari Creative Director Lucia Silvestri through the stages of high jewelry creation.
Chaumet unveiled “Ondeset Merveilles,” its first high jewelry collection entirely inspired by the sea.
Its “Végétal” exhibition in Beaux-Arts of Paris showcased its jewels while highlighting the nature that inspires their designs.
As for LVMH’s watch brands, TAG Heuer introduced the new Connected Calibre E4-Porsche edition and named skater and surfer Sky Brown as its new ambassador.
Hublot was named the official timekeeper of the 2022 FIFA World Cup, its fourth time receiving the honor, while Zenith launched the Chronomaster Original Pink for Breast Cancer Awareness Month.
Fred introduced its new “Embrace Your Force” campaign and held an exhibition in Palais de Tokyo in Paris.
Tiffany & Co.’s new “Lock” collection is a hit in North America.
Tiffany & Co., a newcomer to the LVMH jewelry family, held its own with a strong performance in the third quarter.
“Tiffany & Co. was driven by strong momentum in the United States,” said the company, while also noting that its “Vision & Virtuosity” exhibition at the Saatchi Gallery in London, celebrating the 185th anniversary of the house, was a “great success.”
Tiffany’s new Lock collection debuted in August, featuring eight unisex bangle styles with a clever clasp.
“The new Lock collection with its innovative clasp is off to a solid start in North America,” said Christopher Hollis, LVMH’s director of financial communications, during an earnings call Tuesday afternoon.
Its “Knot” collection is rolling out internationally while its high jewelry collection “Blue Book” enjoyed a successful launch in Asia.
The brand welcomed back Beyoncé as the face of its new advertising campaign.
Tiffany has also been named the official designer of the League of Legends World Championship Trophy, adding an esports (video game) competition to the long list of trophies the brand designs.
LVMH’s revenue growth slowed in the U.S. but is recovering in Asia.
U.S. organic revenue was up 11 percent year-over-year in the third quarter, a significant decline from the 22 percent and 26 percent increases in the first and second quarters, respectively.
For the first nine months, revenue in the region was up 19 percent year-over-year.
The U.S. remains LVMH’s second largest market in terms of revenue, just behind Asia. It accounted for 26 percent of total revenue in the first nine months, up from 25 percent in the previous period.
“Europe, the United States and Japan, up sharply since the start of the year, benefitted from the solid demand of local customers and the recovery in international travel,” said LVMH.
Revenue growth in Europe was up 36 percent in the quarter and 43 percent in the first nine months.
In Japan, revenue climbed 30 percent in the quarter and 32 percent in the first nine months.
The Asia region recovered in the third quarter, up 6 percent, after health restrictions in Q2 sent revenue down 8 percent. For the first nine months, revenue in Asia inched up 2 percent.
LVMH has a confident outlook for the rest of the fiscal year.
The company did not provide specific financial guidance for the year ahead but communicated a positive outlook in spite of ongoing economic headwinds.
“LVMH is confident in the continuation of current growth and will maintain [the] objective of further strengthening its global leadership while staying vigilant in [the] context of macro and geopolitical uncertainties,” it said.
The company said it remains well-positioned to keep gaining market share and will see continued momentum in its online revenue and omnichannel developments.
Its focus going forward will be offering “innovative and high-quality” products and continued selective investments, including expanding its store network.
The fast-casual chain partnered with Anna Sheffield’s Bing Bang NYC brand on a capsule collection and it’s a little “extra.”
De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.
A government official said search crews “found the needle in the haystack” when they located the capsule belonging to Rio Tinto along an 870-mile stretch of road.
De Beers is sharing over 130 years of experience and expertise through the De Beers Institute of Diamonds with a selection of courses.
The IJO also welcomed one new vendor member to its 13-member board, Brecken Farnsworth of Parlé Jewelry Designs.
It begins with a “t” and ends with a “c” and is imbued with warmth and positivity, Peter Smith writes.
The tiny capsule, which is believed to have fallen out of a truck, was lost somewhere along an 870-mile stretch of desert road.
The jeweler’s expansion plans include 20 to 30 more stores in North America and the Middle East over the next two to three years.
The NRF’s annual survey shows that consumer attitudes about how, or even whether, to celebrate Feb. 14 continue to evolve.
Executives from Fred Meyer Jewelers and Riddles Jewelers have filled the roles.
The trend forecaster and her guests explored unconventional jewelry designs, NFTs, AI art, and more during her Trendvision presentation.
The Emerging Designers Diamond Initiative provides diamond credit and mentorship to young brands helmed by BIPOC designers.