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Watch, jewelry sales pick up in Q3 for LVMH
LVMH reported Tuesday that its watch and jewelry segment recorded organic revenue growth of 5 percent in the first nine months of the year, though it noted the retailers to whom it sells TAG Heuer and Hublot watches remain cautious in their buying.
Paris--LVMH reported Tuesday that its watch and jewelry segment recorded organic revenue growth of 5 percent in the first nine months of the year, though it noted the retailers to whom it sells TAG Heuer and Hublot watches remain cautious in their buying.
Sales in the group’s watches and jewelry segment increased from $2.46 billion to $2.51 billion, a 5 percent increase in organic revenue growth and 2 percent when accounting for currency fluctuations. LVMH Moët Hennessy Louis Vuitton owns Bulgari along with TAG Heuer, Zenith, Hublot and Dior Watches and operates the De Beers Diamond Jewellers chain in a joint venture with De Beers.
Sales grew from $774.7 million in the first quarter to $841.1 million in the second quarter before jumping to $904.7 million in the third.
“The third quarter showed a notable acceleration in the jewelry segment, driven notably by Bulgari, while watches continued to be impacted by the cautious purchasing behavior of multi-brand retailers in an uncertain economic environment,” LVMH said.
Key highlights of the quarter included the launch of the new Bulgari women’s watch, the Lvcea, and the success of iconic lines from Hublot.
Total sales for the Paris-based luxury conglomerate increased 4 percent year-over-year to reach $27.29 billion, with sales growth in the U.S. and Europe balancing out the slowdown in Asia.
“In an uncertain economic and financial environment, LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets,” the company said. “LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2014.”
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