Jewelry and Watches Strong for LVMH in 2019

RAPAPORT… Sales of jewelry and watches at LVMH increased 7% in 2019 amid a strong year for Bulgari.

Revenue from the categories rose to EUR 4.41 billion ($4.85 billion), driven by Bulgari’s Fiorever collection, which contributed significantly to growth following its launch at the end of 2018, LVMH said Tuesday. The brand’s Serpenti Seduttori watch line was well received, while Chaumet and Hublot also saw strong sales, the Paris-based luxury group noted. .

Comparable-store sales for the jewelry and watch division increased 3%, while profit grew 5% to EUR 736 million ($809.9 million).

The jewelry results do not include revenue from Tiffany & Co., which LVMH agreed to acquire in November. That transaction is expected to complete in mid-2020, LVMH explained. 

In the fourth quarter, revenue from jewelry and watches rose 4% to EUR 1.14 billion ($1.26 billion).

While jewelry and watches performed well, analysts are concerned about the impact of social unrest in Hong Kong — one of LVMH’s largest markets.

“The overall environment was more challenging for watches and jewelry, given the group’s high sales exposure to Hong Kong,” consultancy group Cowen noted. “We do expect watches and jewelry could remain pressured due to Hong Kong.”

LVMH’s group revenue for 2019 climbed 15% to a record EUR 53.67 billion ($59.06 billion), with continued double-digit increases and growth in all regions. Net profit jumped 15% to EUR 11.5 billion ($12.66 billion).


Image: A Bulgari store in Rome. (Bulgari)