LVMH’s H1 Sales Soar as Tiffany Settles In

Paris—LVMH posted strong results for the first half of its fiscal year, particularly in its watches and jewelry segment as it integrates newly acquired Tiffany & Co.

In the first half of the year, company revenue totaled €28.67 billion ($33.85 billion), up 53 percent year-over-year on a comparable basis.

Revenue also exceeded pre-pandemic levels, up 11 percent compared with 2019.

In the second quarter, organic revenue was up 14 percent compared with the first quarter.

First-half revenue in the watches and jewelry segment more than tripled, up 205 percent to €4.02 billion ($4.75 billion).

Sales are up 5 percent organically compared with pre-pandemic levels, though this excludes Tiffany.

“The first half saw the integration for the first time of iconic jewelry maison Tiffany, which has benefited from the new team’s focus on its iconic products,” LVMH said, noting the jeweler has performed “extremely well.”

In an interview with CNBC last month, Chief Financial Officer Jean Jacques Guiony described the incorporation of the retailer as “a long-term job.” 

“The integration of Tiffany is not a six-month job,” Guiony said. “It’s something that will last for a number of quarters and the objective is not just to integrate. It is to develop the business up to the level that we think the quality of the brand could generate.”

Tiffany recorded strong sales in the United States and Asia and launched its first engagement ring for men, the “Charles Tiffany.”

It also presented its high-end jewelry collection in China and welcomed K-pop superstar Rosé, of the group Blackpink, as its new global ambassador, modeling its Tiffany Hardwear line.

Looking at LVMH’s other brands, Bulgari posted strong growth in jewelry, especially within its network of stores. 

The “Bzero1 Rock” line, released in 2020, found success alongside its new line, “Serpenti Viper,” and “Serpenti Seduttori” watches. Its “Magnifica” high-end jewelry collection launched in June to an “excellent reception.”

Chaumet debuted its new “Joséphine et Napoléon” exhibition at its recently restored address at 12 Place Vendôme in Paris while Fred successfully launched its “Pretty Woman” collection.

In the watch category, TAG Heuer inked a partnership deal with Porsche and launched the Carrera Porsche chronograph to celebrate.
 
Hublot, the official watch for the UEFA Euro 2020 soccer tournament, benefited from high visibility during the second quarter. It also debuted its new connected Big Bang UEFA Euro 2020TM watch.

Zenith introduced its new Chronomaster Sport watch.

Looking to the year ahead for watches and jewelry, LVMH expects to launch new digital initiatives.

Tiffany will launch a new collection of gold jewelry while Bulgari will add to its “Diva’s Dream” and Bzero1 lines and celebrate its renovated store on Place Vendôme.

By region, overall sales in the U.S. and Asia are “up sharply,” said LVMH, while Europe is seeing a gradual recovery.

Growth in direct sales to customers has been strong, said LVMH, both in-store and online, though travel retail is still hampered by a lack of international travel.

LVMH did not provide fiscal guidance for the year ahead, but, in a press release, CEO Bernard Arnault said: “Within the current context, as we emerge from the health crisis and see a recovery in the global economy, I believe that LVMH is in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021.”