Robust Jewelry Sales Boost LVMH

Sales of jewelry and watches at LVMH grew in 2023 amid a rise in demand for products from Tiffany & Co. and Bulgari.

Revenue from the segment climbed 3% to EUR 10.9 billion ($11.84 billion) as the reopening of Tiffany’s Landmark store in New York was “exceptionally well-received,” LVMH said last week. The luxury retailer cited the “huge success” of Tiffany’s new Lock bracelet and the introduction of a collection by new creative director Nathalie Verdeille. Bulgari also had “tremendous success,” while watch brand TAG Heuer brought in record-breaking revenue, the company explained.

Organic sales — which assume a comparable structure and constant exchange rates — for the jewelry and watch division rose 7%. Profit for the category jumped 7% to EUR 2.16 billion ($2.35 billion).

The results beat analysts’ expectations, amid strong growth in both the US and China, according to investment bank TD Cowen.

In the fourth quarter, revenue from jewelry and watches slipped 1.8% year on year to EUR 2.95 billion ($3.21 billion).

Group revenue gained 9% to a record EUR 86.15 billion ($93.59 billion) for the full year, with net profit increasing 8% to EUR 22.8 billion ($24.77 billion).

LVMH believes sales may slow in 2024, hampered by the elections in the US and the balance between local spending versus tourism in China, TD Cowen added.