Monday, May 20, 2024

LVMH Reports 5% Decline in Q1 Jewelry Sales

Paris—LVMH, the luxury powerhouse, initiated its fiscal year with a subdued performance, marked by a decrease in overall reported sales, particularly evident in its watch and jewelry segment.


The conglomerate’s first-quarter results revealed a 2 percent decline in reported revenue, reaching €20.69 billion ($21.97 billion), though organic growth saw a 3 percent increase.


Commenting on the performance, the company stated, “LVMH had a good start to the year despite a geopolitical and economic environment that remains uncertain.”

While the U.S. and Europe experienced growth when assessed in constant currency terms, Japan notably saw double-digit revenue growth. Additionally, the rest of Asia demonstrated robust growth, reflecting increased spending by Chinese consumers in European and Japanese markets.

However, LVMH’s jewelry and watch category faced challenges, with quarterly sales declining by 5 percent (a 2 percent decrease in organic growth), amounting to €2.47 billion ($2.62 billion).

In terms of its brands, Tiffany & Co. continued its global expansion with the introduction of its new store concept, drawing inspiration from its iconic New York City flagship, “The Landmark.” The flagship’s inaugural exhibition, “Culture of Creativity,” celebrated the brand’s enduring commitment to artistic excellence. LVMH noted positive reception for Tiffany’s latest campaign, “With Love, Since 1837,” which showcases its iconic collections.

Meanwhile, Bulgari relaunched its “B.zero1” collection and emphasized its “Serpenti” line. The brand also unveiled Fondazione Bulgari, a foundation dedicated to preserving cultural and artisanal heritage in Italy.

Chaumet debuted its medals for the Paris 2024 Olympic and Paralympic Games, while Fred introduced its new “Sunshine Jeweler” campaign.

In the realm of watches, TAG Heuer, Hublot, and Zenith showcased their offerings in Miami during the fifth LVMH Watch Week of the quarter.

Looking ahead, LVMH refrained from providing specific guidance for the year but expressed confidence while remaining vigilant in the face of an uncertain geopolitical and economic landscape.


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