LVMH jewelry, watch sales up 4 percent in 2013
January 31, 2014
Paris--LVMH Moët Hennessy Louis Vuitton reported 4 percent organic revenue growth for its jewelry and watch division in 2013, led by an “excellent” performance in its directly owned boutiques, particularly Bulgari.
Jewelry and watch sales for the Paris-based luxury goods conglomerate reached $3.76 billion, down 2 percent from $3.83 billion in 2012 but up 4 percent with comparable structure and exchange rates. Profit for the group was up 12 percent, from $451.0 million to $506.3 million.
Remarking on its jewelry sales, LVMH said its network of directly owned boutiques continues to expand worldwide while the presence of its brands in other stores “continues to be more selective.”
LVMH owns Bulgari, Chaumet and Fred, and operates the De Beers Diamond Jewellers stores in a joint venture with the diamond miner and marketer. Watch brands under the group’s umbrella are Zenith, TAG Heuer and Hublot.
Total sales for LVMH reached $39.28 billion, up 4 percent year-over-year (8 percent at comparable exchange rates and structure). Profits rose slightly, reaching $8.13 billion a 2 percent increase from 2012.
“2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets,” Chairman and CEO Bernard Arnault said. “Profit from recurring operations exceeded €6 billion for the first time. All our brands have proven to be exceptionally dynamic.”
Selective retailing, which includes Sephora, turned in the best performance, with sales increasing 17 percent with comparable structure and exchange rates. Sales in LVMH’s perfumes and cosmetic brands rose 7 percent, while sales of wines and spirits were up 6 percent and fashion and leather goods increased 5 percent.