Tiffany & Co. Shines for LVMH in 2022
Acquired in 2021, the brand’s high jewelry sales have doubled and its new “Lock” collection was an instant hit.
The luxury titan reported double-digit revenue growth in the fourth quarter and its full year, with each of its business categories also up double digits for the year.
Here are five important takeaways from the company’s most recent earnings report.
LVMH shined in spite of economic and geopolitical struggles.
LVMH put on a strong performance in the fourth quarter, reporting revenue growth of 13 percent year-over-year to €22.7 billion ($24.7 billion).
For the full year, revenue totaled €79.2 billion ($86.2 billion), up 23 percent year-over-year.
“Our performance in 2022 illustrates the exceptional appeal of our maisons and their ability to create desire during a year affected by economic and geopolitical challenges,” said LVMH CEO Bernard Arnault.
Fashion and leather goods account for the largest percentage of its revenue at 49 percent, followed by selective retailing and other activities (19 percent), then watches and jewelry at 13 percent.
Perfumes and cosmetics are in the No. 4 spot at 10 percent followed by wines and spirits at 9 percent.
Its jewelry and watch brands had a strong year.
The jewelry and watch category saw revenue climb 7 percent in the fourth quarter to €3 billion ($3.3 billion).
For the full year, revenue was up 18 percent to €10.6 billion ($11.5 billion).
LVMH’s jewelry portfolio includes Bulgari, Chaumet, Repossi, and Fred, as well as the recently acquired Tiffany & Co.
“The watches and jewelry business group showed strong momentum in 2022, driven by the powerful appeal of the jewelry maisons and the creativity of their iconic collections, as well as the expertise and capacity to innovate of the watchmaking maisons,” said LVMH in its annual report.
The company said it plans to continue the “selective development of [the brands’] retail networks, marketing, and brand activation through events and digital engagement.”
Asia, excluding Japan, makes up the largest portion of revenue in the category at 32 percent followed by the United States at 26.
Europe, excluding France, is next (15 percent) followed by other markets (13 percent), Japan (11 percent), and France (3 percent.)
Bulgari’s sales increased in the U.S., Europe, and Japan, with its “Serpenti” line and its high jewelry and high watches collections serving as the main growth drivers.
Its “Octo Finissimo Ultra” watch made headlines for breaking a world record for the thinnest watch.
Chaumet also had a “good year,” said LVMH, bringing its nature-inspired “Végétal” exhibition to Beaux-Arts of Paris.
As for LVMH’s watches, TAG Heuer debuted the “Carrera Plasma,” which features lab-grown diamonds.
Hublot garnered attention as the official timekeeper of the 2022 World Cup.
Zenith continued the expansion of its in-store and online distribution.
Tiffany & Co. had a record year.
Tiffany & Co. has been a bright spot on LVMH’s balance sheet since being integrated post-acquisition.
“In a year featuring many initiatives, Tiffany turned in an excellent performance and continued to grow its appeal,” said LVMH.
The brand recruited a number of celebrities in 2022, including Beyoncé, K-pop star Rosé, and Hailey Bieber.
It also introduced the CryptoPunk NFT pendants, which quickly sold out.
Revenue in the brand’s high jewelry segment doubled, said LVMH, due in part to events and a marketing campaign featuring brand ambassador Gal Gadot.
Its new Lock bracelet collection, which made its debut in North America, has been performing especially well, as has the brand’s other lines.
The “Vision & Virtuosity” exhibition, held at the Saatchi Gallery in London in the summer, highlighted the brand’s history and creativity over the last 185 years.
“With openings of more than a dozen new or renovated stores featuring its latest retail concept in the fourth quarter, Tiffany demonstrated its commitment to ramping up the redesign of its store network,” noted LVMH.
Tiffany’s Fifth Avenue flagship store in New York is set to reopen in the first half of 2023 following its renovation.
LVMH saw “sharp increase” of revenue in the U.S.
LVMH saw strong growth in the U.S. as well as in Europe and Japan.
The U.S. remains LVMH’s second largest market in terms of revenue, just behind Asia. It accounted for 27 percent of total revenue in the full year, up from 26 percent in 2021.
Revenue in the U.S. was up 7 percent year-over-year in the fourth quarter and up 15 percent for the full year.
The Asia market, excluding Japan, was still feeling the impact of the COVID-19 situation in China in the fourth quarter, said LVMH.
Quarterly sales in the Asia market were down 8 percent in the fourth quarter and flat for the full year.
In Europe, quarterly sales rose 22 percent while full-year sales were up 35 percent. In Japan, revenue was up 29 percent in Q4 and up 31 percent for the full year.
LVMH is confident about the year ahead.
LVMH didn’t provide financial guidance for the fiscal year ahead, but is approaching it with confidence.
“With the month of January having started well and despite an uncertain geopolitical and economic environment, LVMH is confident in its ability to continue the growth observed in 2022,” the company said.
As for its watch and jewelry category, the company said its goal is to continue gaining market share.
LVMH plans to prioritize innovation, a targeted expansion of its network of directly operated stores and e-commerce, and to find new opportunities through its expanding digital presence.
The company wants to maintain its focus on sustainability and bolster its production capabilities.
Bulgari will start construction on its new jewelry manufacturing facility in Valenza, Italy, which will double production capacity at the site once completed.
LVMH wants the facility to be powered entirely by renewable energy, with 40 percent of that energy generated internally.
The company said it will continue to work on overall brand development and is “enter[ing] 2023 with confidence and once again, [setting] an objective of reinforcing its global leadership position in luxury goods.”
The Latest
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Despite the rising prices, consumers continue to seek out the precious metal.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
The “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
The Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
The Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
The Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
It will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.