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LVMH’s jewelry and watch sales fell in the third quarter, even as Tiffany & Co. and Bulgari showed improvement.
Revenue from the category decreased 3% year on year to EUR 2.32 billion ($2.7 billion) for the three months that ended September 30, LVMH reported Tuesday. Sales of jewelry and watches for the first nine months of the year slipped 2% to EUR 7.41 billion ($8.61 billion).
Despite the overall downturn, sales at Tiffany and Bulgari, two of the company’s top jewelry brands, recorded strong increases.
“Tiffany…enjoyed double-digit growth from its iconic lines,” Rodolphe Ozun, head of investor relations for LVMH, said in an earnings call transcribed by Seeking Alpha. “Renovated stores continued to increase in the mix and to outperform. Tiffany also enjoyed record sales in high jewelry, which continued to outperform in the third quarter and year to date. Bulgari…also enjoyed great success in high jewelry in the third quarter.”
However, while Tiffany has experienced “quite an improvement” in China, it has been slower for Bulgari and other jewelry brands there, the company explained.
During the quarter, Tiffany opened two news stores, in Milan and Tokyo, which both saw a “high level of in-store traffic and revenue,” the company said.
Group revenue for the third quarter decreased 4% to EUR 18.28 billion ($21.25 billion) and fell by the same amount to EUR 58.09 billion ($67.52 billion) for the nine months to September 30.
Image: A Tiffany & Co. store in Tokyo, Japan. (Shutterstock)
