In 2023, sales of jewelry and watches at LVMH experienced significant growth, fueled by increased demand for products from luxury brands Tiffany & Co. and Bulgari. The revenue from this segment surged by 3%, reaching EUR 10.9 billion ($11.84 billion), with LVMH attributing the success to the exceptional reception of the reopening of Tiffany’s Landmark store in New York.
LVMH highlighted the “huge success” of Tiffany’s new Lock bracelet and the successful introduction of a collection by the brand’s new creative director, Nathalie Verdeille. Bulgari also achieved “tremendous success,” while the watch brand TAG Heuer contributed to record-breaking revenue, according to statements from the luxury conglomerate.
Organic sales for the jewelry and watch division, assuming a comparable structure and constant exchange rates, witnessed a remarkable 7% increase. The profit for this category saw a commendable 7% jump to EUR 2.16 billion ($2.35 billion).
The reported results exceeded analysts’ expectations, showcasing robust growth in both the US and China, according to insights from investment bank TD Cowen. However, in the fourth quarter, revenue from jewelry and watches experienced a slight dip of 1.8% year on year to EUR 2.95 billion ($3.21 billion).
For the full year, LVMH achieved a 9% increase in group revenue, reaching a record EUR 86.15 billion ($93.59 billion), with net profit rising by 8% to EUR 22.8 billion ($24.77 billion).
Despite the impressive performance, LVMH anticipates a potential slowdown in sales for 2024. Factors such as the upcoming elections in the US and the delicate balance between local spending and tourism in China are expected to impact sales, as noted by TD Cowen.
