LVMH Posts Muted Q3 Growth, Jewelry Sales Slow
The luxury titan pointed to softening luxury sales, especially in the U.S. and Europe.
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.
Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.
The wedding band company is also accusing its former customer of removing watermarks from Lashbrook images for its own use.
It provides a timeline for the implementation of new restrictions, but no details.
With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.
Sherry Smith breaks down the numbers on jewelry sales in November and reveals the category that “emerged as a standout.”
Additional lots will be offered in the Fine Jewels online sale through Dec. 7.
Peter Damian Arguello, the owner of Peter Damian Fine Jewelry & Antiques, was shot and killed in an apparent robbery last week.
The Indian jewelry giant has opened locations in Houston and Frisco, Texas.
Each student was provided with the full amount of tuition for the Namibia University of Science & Technology.
The watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.
The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.
It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.
Chris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.
The retail offering lets customers track their diamond’s journey.
The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.
From Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.