LVMH Jewelry Revenue Slides at Start of the Year

First-quarter sales at LVMH fell amid conflict in the Middle East and lower tourist spending in Europe and Japan.

Revenue from the luxury group’s watch and jewelry division slipped 2% year on year to EUR 2.44 billion ($2.88 billion) for the three months that ended March 31, LVMH said Monday.

After a strong start to the year, overall performance suffered in March due to the war in Iran. Despite the small downturn during the quarter, the segment showed some positive movement — including a new Tiffany & Co. campaign with global brand ambassador Natalie Portman, and the debut of the brand’s latest high-jewelry collections. Meanwhile, Bulgari reported strong growth and launched Eclettica, a new line of high jewelry and high-end watches. Chaumet benefited from the expansion of its Bee de Chaumet collection.

“LVMH remains vigilant yet confident at the start of the year,” the company said. “The group remains focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its designs, their desirability and their selective distribution.”

Total group revenue dropped 6% to EUR 19.12 billion ($22.54 billion) during the quarter. Sales in the US were solid, while steady local demand in Europe and Japan helped to offset a decline in tourist spending. The rest of Asia recorded strong growth, reinforcing the trend of improvement the company had seen since last year’s second half.

Image: A Tiffany & Co. store in Palo Alto, California. (Shutterstock)