LVMH jewelry and watch sales in the first quarter up 24%

Paris — LVMH started its fiscal year on a high note, posting strong double-digit revenue growth in the first quarter.

Here are five key takeaways from the luxury titan’s latest earnings report.

It’s a good start to the year for LVMH.

LVMH posted a strong performance in the first quarter, recording revenue growth of 29% year-on-year to 18 billion euros ($19.6 billion).

This double-digit growth trickled down to all business categories except its wine and spirits division due to supply constraints.

LVMH did not share its financial forecast for the year ahead but said it remained “both vigilant and confident” in light of the pandemic and geopolitical crises.

“LVMH relies on the talent and motivation of its teams, the diversity of its businesses and the geographical balance of its revenues to further strengthen its position as the world leader in luxury in 2022,” the company said.

Jewelry and watch sales remain strong following the Tiffany acquisition.

Revenue from the watches and jewelry segment increased 24% year-on-year to €2.34 billion ($2.55 billion).

Its portfolio of jewelry brands includes Bulgari, Chaumet, Repossi and Fred, as well as the recently acquired Tiffany & Co.

The category has received a strong boost in recent quarters following LVMH’s acquisition of Tiffany, which was completed in January 2021.

The historic brand had an “excellent start to the year”, LVMH said, and recorded particularly strong growth in the United States.

Her “Knot” collection, which features a knot pattern on bracelets, earrings, rings, pendants and a choker, was particularly successful.

Bulgari’s growth was driven by its fine jewelry and watch collections, as well as its Serpenti line, LVMH said.

In addition, Chaumet and Fred achieved an “excellent performance”.

Chaumet’s “Joséphine” and “Liens” lines performed well, while Fred opened a new flagship in Singapore.

The Tiffany & Co. brand is strong.

Tiffany is a prominent brand among LVMH’s jewelry houses, receiving special attention, as did Bulgari, in its earnings presentation.

The “Knot” collection was a strong performer, alongside high jewelry offerings from Tiffany.

Its relaunch of the creations of the famous jeweler Jean Schlumberger also worked well.

The company has launched a new campaign for its HardWear line, featuring K-pop superstar Rosé.

Its celebrity ambassadors include Anya Taylor-Joy, Tracee Ellis Ross and Eileen Gu.

Related stories will be here…

Recently, the jeweler jokingly announced that it would be getting into the cryptocurrency game, launching TiffCoin as an April Fool’s joke.

He then released 499 physical Tiffcoins in 18k gold, priced at $9,999, individually numbered and engraved with a Tiffany “T”.

The brand joined Signet Jewelers and Brilliant Earth in refusing to buy Russian diamonds in light of the Russian invasion of Ukraine.

There are many novelties from its watch brands.

LVMH’s portfolio of watch brands includes TAG Heuer, Hublot and Zenith.

Its watch brands “continued to experience strong momentum,” LVMH said, and unveiled several new timepieces at the recent Watches & Wonders show in Geneva.

TAG Heuer presented five new watches at the show, including its first solar-powered watch.

The brand also launched the Carrera Plasma, which features lab-grown diamonds, including an all-diamond crown at 3 o’clock.

Hublot launched The Big Bang Unico Ledger in partnership with cryptocurrency company Ledger, and Zenith introduced the new Chronomaster Open and Chronomaster Sport models.

Bulgari also recently launched the new Octo Finissimo Ultra watch.

The US zone posted double-digit growth.

The United States is LVMH’s second largest market in terms of sales, just behind Asia.

The United States accounted for 24% of sales, compared to 23% in the previous first quarter.

Organic revenue in the United States increased by 26%, compared to growth of 23% last year.

Japan and Europe also recorded double-digit organic revenue growth.

Asia, excluding Japan, recorded revenue growth of 8%, a significant difference from the 86% growth in the previous first quarter.

“Asia continued to grow over the quarter despite the impact of tougher health restrictions in China in March,” said LVMH.

Floyd N. Morlan