FinancialsAug 31, 2023
Signet’s Q2 Same-Store Sales Fall 12% FinancialsOct 11, 2023
LVMH Posts Muted Q3 Growth, Jewelry Sales Slow
The luxury titan pointed to softening luxury sales, especially in the U.S. and Europe.
A selection of rings from LVMH-owned Bulgari’s “Wonders the Garden of Eden” high jewelry collection. LVMH had a quieter third quarter due to lower demand for luxury goods.
Paris—LVMH posted muted growth in its third quarter, with jewelry and watch sales slowing down.
Declining demand for luxury handbags and its wine and spirits dragged down its results.
The luxury conglomerate noted softening luxury sales worldwide, highlighting the United States and Europe in particular.
Here are four notable takeaways from the company’s most recent earnings report.
LVMH put on a so-so third quarter performance but saw growth in the first nine months of the fiscal year.
LVMH reported revenue growth of 1 percent year-over-year (9 percent on an organic basis) to €19.96 billion ($21.14 billion) in the third quarter.
Its fashion and leather goods division posted slower growth in the quarter compared with its double-digit jump in Q2.
Its wine and spirit sales tumbled, which it attributed to demand waning post-COVID and a tougher U.S. market, especially for cognac sales.
Its balance sheet was brighter for the first nine months, with revenue up 10 percent (14 percent on an organic basis) to €62.21 billion ($65.9 billion).
Jewelry and watch sales faltered in Q3.
In the third quarter, revenue in the watches and jewelry segment was down 5 percent year-over-year to €2.52 billion ($2.67 billion) on a reported basis but up 3 percent on an organic basis.
In the first nine months, revenue in the category totaled €7.95 billion ($8.42 billion), up 5 percent (9 percent on an organic basis).
Its jewelry portfolio includes Bulgari, Chaumet, Repossi, Fred, and Tiffany & Co.
After the reopening of Tiffany’s New York flagship, dubbed “The Landmark,” the brand continued to revamp its store network, opening two new stores in Tokyo.
Its new “Lock” collection continued its worldwide rollout. It also launched the second part of the “Blue Book: Out of the Blue” high jewelry collection.
Bulgari, which has been celebrating the 75th anniversary of its “Serpenti” collection, saw “strong growth,” said LVMH.
To honor the milestone, it held a new exhibition in Dubai, following shows in Shanghai, New York, and Seoul.
Bulgari’s recently launched “Mediterranea” high jewelry collection put on an “outstanding performance,” said LVMH.
Chaumet held its “A Golden Age: 1965-1985” retrospective exhibition at its 12 Vendôme location in Paris while Fred debuted “Audacious Blue,” the brand’s first lab-grown blue diamonds.
Both brands saw strong growth, the company said.
As for watches, TAG Heuer opened a flagship store in New York while Hublot served as the official timekeeper for the FIFA Women’s World Cup in Australia.
Zenith launched its limited-edition “Defy Chroma” collection.
Related stories will be right here …
Declining demand for luxury handbags and its wine and spirits dragged down its results.
The luxury conglomerate noted softening luxury sales worldwide, highlighting the United States and Europe in particular.
Here are four notable takeaways from the company’s most recent earnings report.
LVMH put on a so-so third quarter performance but saw growth in the first nine months of the fiscal year.
LVMH reported revenue growth of 1 percent year-over-year (9 percent on an organic basis) to €19.96 billion ($21.14 billion) in the third quarter.
Its fashion and leather goods division posted slower growth in the quarter compared with its double-digit jump in Q2.
Its wine and spirit sales tumbled, which it attributed to demand waning post-COVID and a tougher U.S. market, especially for cognac sales.
Its balance sheet was brighter for the first nine months, with revenue up 10 percent (14 percent on an organic basis) to €62.21 billion ($65.9 billion).
Jewelry and watch sales faltered in Q3.
In the third quarter, revenue in the watches and jewelry segment was down 5 percent year-over-year to €2.52 billion ($2.67 billion) on a reported basis but up 3 percent on an organic basis.
In the first nine months, revenue in the category totaled €7.95 billion ($8.42 billion), up 5 percent (9 percent on an organic basis).
Its jewelry portfolio includes Bulgari, Chaumet, Repossi, Fred, and Tiffany & Co.
After the reopening of Tiffany’s New York flagship, dubbed “The Landmark,” the brand continued to revamp its store network, opening two new stores in Tokyo.
Its new “Lock” collection continued its worldwide rollout. It also launched the second part of the “Blue Book: Out of the Blue” high jewelry collection.
Bulgari, which has been celebrating the 75th anniversary of its “Serpenti” collection, saw “strong growth,” said LVMH.
To honor the milestone, it held a new exhibition in Dubai, following shows in Shanghai, New York, and Seoul.
Bulgari’s recently launched “Mediterranea” high jewelry collection put on an “outstanding performance,” said LVMH.
Chaumet held its “A Golden Age: 1965-1985” retrospective exhibition at its 12 Vendôme location in Paris while Fred debuted “Audacious Blue,” the brand’s first lab-grown blue diamonds.
Both brands saw strong growth, the company said.
As for watches, TAG Heuer opened a flagship store in New York while Hublot served as the official timekeeper for the FIFA Women’s World Cup in Australia.
Zenith launched its limited-edition “Defy Chroma” collection.
U.S. sales growth was also muted.
U.S. sales were up 2 percent in the third quarter and up 3 percent in the first nine months on an organic basis.
The U.S. is LVMH’s second largest market in terms of revenue, just behind Asia.
The U.S. accounted for 24 percent of revenue, down from 26 percent in the previous first nine months.
For the first nine months, LVMH reported double-digit organic growth in Europe, Japan, and the rest of Asia.
LVMH remains silent on its financial future.
As in previous quarters, the company did not provide fiscal guidance for the year ahead, noting only, “In an uncertain economic and geopolitical environment, the group is confident in the continuation of its growth and will maintain a strategy focused on continuously enhancing the desirability of its brands, drawing on the authenticity and quality of its products, excellence in distribution and agile organization.”
As for its future plans, the company said it will rely on the power of its brands and the talent of its employees to strengthen its leadership position in the luxury goods market.
More on Financials
The Latest
TrendsDec 08, 2023
Pantone’s Color of the Year Is Warm and FuzzyThe peachy hue also marks the program’s 25th anniversary.
AuctionsDec 08, 2023
Sotheby’s Sold All Mary Tyler Moore’s JewelryThe 21 pieces up for auction, including Tiffany & Co. jewels and a Cartier watch, garnered more than $430,000 across two sales.
CollectionsDec 08, 2023
Piece of the Week: A ‘Strong & Precious’ Brooch Centered on a sunny heliodor, the “Links” pin was designed by Ukrainian jewelry artist Inesa Kovalova.
Brought to you by
The Most Important “C” in Diamonds: Confidence!Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.
MajorsDec 07, 2023
Lashbrook Sues Manly Bands for Allegedly Copying Designs The wedding band company is also accusing its former customer of removing watermarks from Lashbrook images for its own use.
Weekly QuizDec 07, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
Policies & IssuesDec 07, 2023
The G7’s Long-Awaited Statement on Russian Diamonds Is Here It provides a timeline for the implementation of new restrictions, but no details.
MajorsDec 07, 2023
24 Karat Club of New York Welcomes New MembersThe organization has elected 12 new additions.
Brought to you by
If It’s Custom, Make It PlatinumWith holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.
ColumnistsDec 06, 2023
On Data: How Are Independents Doing So Far This Holiday Season? Sherry Smith breaks down the numbers on jewelry sales in November and reveals the category that “emerged as a standout.”
AuctionsDec 06, 2023
A Yellow Diamond, Hollywood Jewels Stand Out at Sotheby’s Additional lots will be offered in the Fine Jewels online sale through Dec. 7.
GradingDec 06, 2023
GIA Debuts Revamped Graduate Jeweler ProgramBy mixing creative and practical skills, the new course hopes to fill the industry’s bench jeweler gap.
AuctionsDec 06, 2023
Verdura Cuff, Burmese Sapphire Shine at Bonhams Several other colored gemstones joined the pieces in the top 10 list.
CrimeDec 05, 2023
Police Continue to Investigate Murder of Colorado Jeweler Peter Damian Arguello, the owner of Peter Damian Fine Jewelry & Antiques, was shot and killed in an apparent robbery last week.
MajorsDec 05, 2023
Tanishq Continues U.S. Expansion With 2 New StoresThe Indian jewelry giant has opened locations in Houston and Frisco, Texas.
SourcingDec 05, 2023
Grandview Klein Awards Two Scholarships in NamibiaEach student was provided with the full amount of tuition for the Namibia University of Science & Technology.
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury WatchesThe watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJCThe industry veteran will step down from both roles in April 2024.
TrendsDec 04, 2023
Amanda’s Style File: Decadent DecemberTanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany ExecThe lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond NecklaceIt’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong KongThe 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COOChris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow DiamondThe stone headlining the upcoming sale could fetch up to $5 million.
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ ProgramThe retail offering lets customers track their diamond’s journey.
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRFFrom Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.
