Financials

Bulgari, TAG Heuer Fuel Sales Growth at LVMH

FinancialsJul 28, 2016

Bulgari, TAG Heuer Fuel Sales Growth at LVMH

The strong performance of Bulgari watches and jewelry plus TAG Heuer’s smartwatch helped drive a decent first half for LVMH.

An 18-karat white, yellow and pink gold ring from the extension to Bulgari’s B Zero 1 collection, which was mentioned by LVMH as a strong performer in the first half of the year. The tri-metal-color line extension, which came out earlier this year, is referred to by the brand as the “perfect mistake.”

Paris--The strong performance of Bulgari watches and jewelry plus TAG Heuer’s smartwatch helped drive a decent first half for LVMH.

Overall, the Paris-based luxury group saw sales rise but profits were flat, and regions outside the United States struggled.

LVMH Moët Hennessy Louis Vuitton reported Wednesday that revenue for its Watches & Jewelry group increased from $1.71 billion in the first half of 2015 to $1.78 billion this year. It was an increase of 4 percent on both a reported and organic basis.

First half group profit was flat at $276.3 million.

LVMH mentioned both Bulgari and TAG Heuer when commenting on its results, stating that there was a “successful refocusing” of TAG Heuer’s core product range and an “excellent response” to new watches in some of its most popular lines, Carrera, Aquaracer and Formula 1.

The brand’s smartwatch, the “Connected,” which came out in November 2015, also continues to do well. LVMH said TAG has doubled its production capacity for the timepiece.

The performance of Bulgari was “well above the market,” driven by the success of the B Zero I and Diva lines and the reopening of the brand’s store on Bond Street in London.

LVMH said it is opening a new Bulgari jewelry workshop in Valenza, Italy.

The performance of Watches & Jewelry was in line with that of other segments of LVMH’s business, none of which had first half revenue growth that exceeded single digits.

The strongest-performing group, Wines & Spirits, recorded organic revenue growth of 9 percent while Perfumes & Cosmetics reported an 8 percent year-over-year increase in sales.

Revenue was up 5 percent for Selective Retailing, which includes experience-focused cosmetics chain Sephora, and was flat for Fashion & Leather Goods.

Region-wise, the United States was the second-largest market for the Paris-based luxury goods group, comprising 26 percent of total revenue in the first half of the year. Only Asia (excluding Japan) was bigger, at 28 percent.

The U.S. also was the strongest performing market for LVMH in the period, with year-over-year organic revenue growth of 7 percent. Sales were flat in Japan and Asia and up 5 percent in Europe.

Total revenue for LVMH was up 3 percent, from $18.47 billion to $19 billion.

Profit from recurring operations was flat.

The company said it has “confidence for (the remainder of) 2016, despite an uncertain economy (and) monetary and geopolitical context.”

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

CollectionsOct 22, 2021
Piece of the Week: Nouvel Heritage’s Mood Necklace

The brand’s signature bangle gets a necklace companion.

CollectionsOct 22, 2021
The Artistry 2022 Catalog Is Out

It’s full of bestsellers to stock up on.

SurveysOct 21, 2021
10 Retailers on Why They Expect the Diamond Boom to Continue

However, their optimistic outlook comes with a hint of caution due to a number of factors out of their collective control.

Brought to you by
Buying a Diamond is More Than Knowing the 4C’s

Buyers may be excited about online diamond deals, but there are uncertainties surrounding the authenticity and clarity of the diamonds.

SourcingOct 21, 2021
This Coffee-Table Book Is the Perfect Present for Diamond Lovers

The tome offers an appreciation for the stone through the voices of celebrities, designers, and other diamond lovers.

Weekly QuizOct 22, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of Oct. 18-22, 2021.
Take the Quiz
ColumnistsOct 21, 2021
Squirrel Spotting: It’s a Diamond Moment!

It’s no doubt diamond sales are booming, but why? Peter Smith explores the complicated reasons why consumers want the stones right now.

IndependentsOct 21, 2021
Quiz: How Closely Have You Been Reading Our Columns?

Brush up on the finer points of customer budgets, recruiting new employees and driving traffic to a new website with this quick test.

Brought to you by
Viva Italia! Why the JCK Italian Pavilion Was a Sight Worth Seeing at JCK Las Vegas

One of the highlights of the JCK show in Las Vegas has always been the Italian Pavilion, buzzing with excitement and elegance.

TrendsOct 21, 2021
Amanda’s Style File: Prepare to ‘Fall’ in Love

Here are 15 jewels to celebrate the season.

×