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LVMH Watch, Jewelry Sales Up 20% in Q1
It was one of the strongest-performing divisions for the luxury goods company that owns brands like Bulgari and TAG Heuer.
LVMH brand TAG Heuer marked the 55th anniversary of the Carrera line with a number of introductions at Baselworld, like the black dial and black leather strap version of the Carrera Calibre 16 Chronograph pictured here. LVMH said all its Baselworld introductions were “very well received.”
Paris--Bulgari recorded another solid quarter, helping again to boost results for the Watches & Jewelry division of parent company LVMH.
LVMH Moët Hennessy Louis Vuitton reported Monday that year-over-year organic revenue growth (meaning with comparable structure and exchange rates) for jewelry and watches was 20 percent in the first quarter.
Reported revenue growth was 9 percent, with total sales rising from €879 million ($1.08 billion) to €959 million ($1.18 billion).
LVMH said Bulgari “enjoyed an excellent performance” and continues to gain market share on the back of its most well-known lines, Serpenti, B.Zero 1, Diva and Octo. At the Baselworld show, the brand introduced the Octo Finissimo Automatic Tourbillon, the thinnest automatic tourbillon watch in production that is limited to 50 pieces and retails for $118,000.
Also in the first quarter, Chaumet unveiled a new high jewelry collection and Hublot introduced the Big Bang Sapphire Tourbillon at Basel, while Zenith came out with Defy. TAG Heuer, another of the division’s top-performing brands, paid homage to the 55th anniversary of its popular Carrera line with a number of new watches.
Watches & Jewelry recorded the highest year-over-year Q1 revenue growth of any LVMH division.
Perfumes & Cosmetics was next with organic revenue growth of 17 percent (8 percent reported), followed by Fashion & Leather Goods at 16 percent (25 percent reported), Wines & Spirits at 10 percent (flat reported) and Selective Retailing (Sephora, DFS) at 9 percent (down 2 percent reported because of the company’s termination of its concession at the Hong Kong airport).
Overall, LVMH recorded an organic revenue increase of 13 percent in the first quarter and a reported revenue increase of 10 percent, with sales rising from €9.88 billion ($12.18 billion) to €10.85 billion ($13.43 billion).
The company described the start of the year as “buoyant … albeit marked by unfavorable exchange rates and geopolitical uncertainties.”
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