LVMH’s Jewelry, Watch Sales Up 11% in H1

Paris—LVMH posted strong results for the first half of its fiscal year, reporting double-digit revenue growth.

From jewelry and watches to perfumes and cosmetics, all the luxury titan’s business groups also reached double-digit organic revenue growth in the first half of the year, with the exception of wine and spirits, which faced tough comps.

Despite strong H1 results, LVMH hesitated to give fiscal guidance amid an uncertain economic and geopolitical environment.

Here are five important takeaways from the company’s most recent earnings report.

LVMH put on a solid first-half performance.

LVMH had a strong performance in the first half, reporting revenue growth of 15 percent year-over-year to €42.24 billion ($46.64 billion).

For the second quarter, revenue was up 13 percent year-over-year to €21.2 billion ($23.41 billion).

“LVMH achieved outstanding results during a six-month period of ongoing economic and geopolitical uncertainty,” said Bernard Arnault, chairman and CEO of LVMH.

Given said uncertainty, the company did not provide guidance for the year ahead.

“Thanks to the desirability of our brands, we approach the second half of the year with confidence and optimism but will remain vigilant within the current environment and count on the agility and talent of our teams to further strengthen our global leadership position in luxury goods in 2023,” said Arnault.

Jewelry and watch sales were strong.

In the first half, revenue in the watches and jewelry segment was up 11 percent year-over-year to €5.43 billion ($6 billion).

In the second quarter, revenue in the category totaled €2.84 billion ($3.14 billion), up 10 percent year-over-year.

Its jewelry portfolio includes Bulgari, Chaumet, Repossi, Fred, and Tiffany & Co.

The category has received a strong boost in recent quarters following LVMH’s acquisition of Tiffany. The deal closed in January 2021.

“Jewelry saw solid ongoing growth,” said Christopher Hollis, LVMH’s director of financial communications, during an earnings call Tuesday afternoon.

Bulgari posted “excellent growth,” the company noted, highlighting the success of its new “Mediterranea” high jewelry collection.

The brand has been celebrating the 75th anniversary of its “Serpenti” line at events in New York, Los Angeles, Shanghai, Seoul, and Madrid.

Chaumet added new products to its “Liens Evidence” line while Fred continued to expand into new markets, with both brands experiencing “strong growth.”

Tiffany & Co. is celebrating the success of its new flagship.

Tiffany & Co. is riding high off the momentum of its newly renovated New York City flagship, dubbed “The Landmark.”

The store opening made headlines, with LVMH stating, “The Landmark has once again become an emblematic venue for New York life.”

The subsequent fire that broke out near the building shortly after its opening day also garnered attention. Two people suffered minor injuries, but the flagship was ready to open for business shortly after.

Nathalie Verdeille, the brand's new artistic director, designed “Out of the Blue,” her first high jewelry collection.

Tiffany also continued the global rollout of its “Lock” collection, promoted by K-pop star Rosé.

The brand also recently announced its acquisition of the “Tiffany Muzo Emerald,” a rare, more than 10-carat, rectangular square-cut emerald from the Muzo mines in Colombia.

Tiffany has also made progress on its sustainability journey, recently receiving approval from the Science Based Targets initiative (SBTi) on its net-zero emissions target. 

LVMH’s watch brands showed “excellent innovation.”

LVMH’s watch brand portfolio consists of TAG Heuer, Hublot, and Zenith.

“There was some excellent innovation at the watch brands,” said Hollis on the call.

TAG Heuer has been celebrating the 60th anniversary of its Carrera watch, recently re-introducing the Carrera Skipper.

Hublot partnered with artist Takashi Murakami on a collection of 13 NFT-linked unique watches.

Zenith expanded its “Defy” collection and is developing its historic “Pilot” line.

Bulgari’s watches, particularly the high-end models, have also been performing well.

U.S. sales rose in H1, despite a slip in Q2. 

The United States is LVMH’s second-largest market in terms of revenue, just behind Asia. 

The U.S. accounted for 24 percent of revenue, down from 27 percent in the previous first half. 

U.S. organic revenue was up 3 percent in the first half, despite a slowdown in Q2, when revenue slipped 1 percent. 

LVMH touted “strong growth” in Europe (up 22 percent) and Asia (up 23 percent). In Japan, revenue in the first half climbed 31 percent.