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Paris--LVMH Moët Hennessy Louis Vuitton recorded another strong year, with sales up 16 percent and profits surpassing the $5 billion mark for the first time, the luxury goods conglomerate reported Thursday.

Total sales for LVMH in 2011 were $31.2 billion, compared to $26.71 billion in 2010. Profit from recurring operations increased 22 percent to $6.91 billion.

Watches and jewelry continued to be one of the strongest-performing categories for the retailer, especially given the acquisition of iconic Italian brand Bulgari in the second half of the year.

Watch and jewelry sales increased from $1.30 billion to $2.56 billion, a 98 percent increase on a reported basis but a 23 percent increase with comparable structures, meaning excluding the Bulgari acquisition, and exchange rates. Profits doubled as a result of the Bulgari acquisition, from $168.3 million to $348.4 million but were up 41 percent with comparable structures.

In the watch segment of the business, TAG Heuer introduced two new watches entirely developed and manufactured by its own workshop, the “Mikrograph 100” and the “Mikrotimer Flying 1000.” Hublot launched “Masterpieces,” a new collection of grand complications, and extended its store network while Zenith refreshed its classic lines.

LVMH reported that the newly acquired Bulgari performed excellently across all categories, with its new collections centered around the Serpenti motif, one that has been a part of the brand since the 1950s.

The other jewelry brands, Chaumet, De Beers Diamond Jewellers and Fred, were “driven by the strong momentum at their network of stores” and “continued to develop their star collections,” the company said.

In addition to watches and jewelry, selective retailing turned in a strong performance, with a 20 percent reported increase in revenue, followed by fashion and leather goods at 15 percent, wines and spirits at 8 percent and perfumes and cosmetics at 4 percent.

“2011 was another great vintage for LVMH, highlighting once again the power of our brands, the excellence of our craftsmanship and the appeal of our products,” LVMH Chairman and CEO Bernard Arnault. “Our businesses enjoyed excellent momentum and profit from recurring operations passed the threshold of €5 billion for the first time. The agreement with the Bulgari family was one of the key moments of the year. In 2012, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy.”