Dana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.
LVMH’s Watch, Jewelry Sales Down 38% So Far This Year
Declining orders from retailers have hit TAG Heuer and Hublot hard, though TAG’s new smartwatch has “been a great success.”
Paris—To paraphrase Dennis Green, the numbers are what we thought they would be.
On Monday, LVMH Moët Hennessy Louis Vuitton, the luxury behemoth that owns brands like Bulgari and TAG Heuer, reported a 38 percent year-over-year decline (39 percent with comparable structure and exchange rates) in sales for its Watches & Jewelry division in the first half of 2020.
Sales totaled €1.32 billion ($1.55 billion), down from €2.14 billion ($2.51 billion) in the same period last year.
Like so many companies, LVMH was forced to shutter its stores and manufacturing facilities for several months due to the worldwide spread of COVID-19.
The company said Monday that in Q2, Bulgari experienced a rebound in the Chinese market as stores there reopened for business.
The iconic Italian brand introduced B.Zero1 Rock collection in February and a new high jewelry collection, this one called Barocko, in June using augmented reality.
Watch brands TAG Heuer and Hublot, meanwhile, felt the impact of the pandemic on third-party retailers, with orders declining.
The new TAG Heuer smartwatch, however, launched at an event in New York right before COVID-19 forced the city to shut down, has “been a great success,” LVMH said.
RELATED CONTENT: Richemont’s Jewelry Sales Sink 41% in Q1
Total sales for LVMH, which also owns Louis Vuitton, Christian Dior and champagne brand Moët, declined 27 percent (28 percent with comparable structure and exchange rates) year-over-year to €18.39 billion ($21.61 billion).
Profit from recurring operations sunk 68 percent to €1.67 billion ($1.96 billion). The company said its most profitable brands were Louis Vuitton, Christian Dior and Moët Hennessy’s stable of wines and liquors.
In a news release announcing first-half results, LVMH Chairman and CEO Bernard Arnault noted the company has seen “an upturn in activity” since June, though the start of the recovery has been uneven.
LVMH’s Q2 revenue fell 38 percent, with a strong rebound in China but sales “notably down” in Europe and the United States, which is battling widespread outbreaks in multiple states and leads the world in both the number of reported COVID-19 cases and deaths.
“We remain very vigilant for the rest of the year,” Arnault remarked. “We continue to be driven by a long-term vision, a deep sense of responsibility and a strong commitment to environmental protection, inclusion and solidarity.
“Thanks to the strength of our brands and the responsiveness of our organization, we are
LVMH did not provide financial guidance for the rest of the fiscal year, stating only that it will focus on controlling costs and “being selective in its investments.”
“The impact of the epidemic on revenue and annual results cannot be precisely assessed at this stage without knowing the timetable for the return to normal business in the different areas where the group operates,” it said.
Regarding its planned acquisition of Tiffany & Co., LVMH provided a one-line update, noting that the closing date will depend on it receiving final regulatory approvals.
Questions about whether the $16 billion deal will go through arose earlier this summer due to the impact COVID-19 has had on retail and the ongoing civil unrest in the U.S.
The Latest
The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.
The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.
From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.
The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.
The new store features a custom design studio and a bridal salon.
This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.
Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.
The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”
The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.
The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.
The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.
Grosz had served as Assael’s senior vice president and creative director since 2017.
“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.
A more positive view of the labor market contributed to the strongest monthly gain since March 2021.
The funds will be distributed to schools in the U.S., Canada, and the U.K.
Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.
This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.
The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.
The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.
The company combined two sights in Q3 due to the slowdown in demand, and said it is moving up the dates for sights 9 and 10 in Q4.
The jewelry designer discussed how she got into the jewelry industry, what she keeps in her favorite locket, and the future of her brand.
Participants can buy five votes for $5 to decide which jeweler will dress up as an ‘80s rockstar for Halloween.
These 15 pieces of jewelry hand-picked ahead of Halloween appeal to the costume- and candy-loving child in all of us.
Starboard Luxury is bringing the Italian brand aboard The Ritz-Carlton Yacht Collection’s newest yacht.