LVMH’s First-Half Jewelry, Watch Sales Dip 5%

Paris—LVMH’s first-half sales slipped as the luxury titan grappled with an uncertain geopolitical and economic environment and a slowdown in spending on luxury goods in China.

In the first half of the year, LVMH’s revenue totaled €41.7 billion ($45.26 billion), down 1 percent year-over-year (up 2 percent in organic terms).

In the second quarter, revenue was down 1 percent year-over-year (up 1 percent in organic terms) to €20.98 billion ($22.77 billion).

“The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty,” said Bernard Arnault, chairman and CEO of LVMH.

The luxury titan’s jewelry and watch sales also slipped.

In the first half, revenue in the watches and jewelry segment fell 5 percent year-over-year (down 3 percent in organic terms) to €5.15 billion ($5.59 billion).

In the second quarter, revenue in the category totaled €2.69 billion ($2.92 billion), down 5 percent year-over-year (down 4 percent in organic terms).

LVMH’s jewelry portfolio is comprised of Bulgari, Chaumet, Repossi, Fred, and Tiffany & Co.

On an earnings call Tuesday, Rodolphe Ozun, the company’s director of financial communications, shared some insights into each brand.

“Tiffany & Co. has accentuated its strategic focus on its iconic lines,” said Ozun.

Its “With Love, Since 1837” marketing campaign has been highlighting the “Tiffany T,” “Lock,” “HardWear,” and “Knot” collections.

The brand also introduced the new “Tiffany Titan by Pharrell Williams” collection and “Tiffany Céleste,” its 2024 Blue Book high jewelry line.

Tiffany also has renovated about 30 stores, which amounts to one-quarter of its fleet, said Ozun.

Bulgari has seen good momentum, said LVMH, highlighting the “exceptional” revenue from its “Aeterna” jewelry and watch collection, released in honor of its 140th anniversary

Fred expanded its “Pretty Woman” collection and introduced a new “Force 10” edition inspired by the French Open.

LVMH also noted that Chaumet was asked to design the medals for this year’s Olympic and Paralympic Games, the first jeweler to do so. The 2024 Summer Olympics are set to begin this Friday in Paris. 

LVMH’s watch brand portfolio consists of TAG Heuer, Hublot, and Zenith.

In June, LVMH acquired Swiza, the owner of L’Epée 1839, which is a Swiss manufacturer of high-end clocks and objets d’art. The purchase price was not disclosed.

The company also recently announced a reshuffling of its watch executives.

On Sept. 1, Julien Tornare, current CEO of TAG Heuer, will become CEO of Hublot. Antoine Pin, now the general manager of Bulgari’s watch business, will take over Tornare’s role as CEO of TAG Heuer.

TAG Heuer introduced new Formula 1 models, collaborating with Kith and Oracle Red Bull Racing while Hublot teamed up with artist Daniel Arsham on a new pocket watch.

Zenith debuted the first “Icons” capsule collection, “Pilot,” which included three watches restored and certified by the brand.

Looking at LVMH’s performance by region, sales grew in the United States and Europe.

Japan led the charge, as it did for rival Richemont in its recent Q1 results, with double-digit revenue growth.

Chinese customers were spending in Europe and Japan, said LVMH, but overall sales in Asia Pacific were down 10 percent in the first half of the year.

The U.S. is LVMH’s second-largest market in terms of revenue, just behind Asia. It accounted for 25 percent of revenue, up from 24 percent in the previous first half. 

Looking to the year ahead, the company did not give a forecast, but Chief Financial Officer Jean-Jacques Guiony said the company likely will see stronger growth in the second half of the year due to easier comparatives. 

“Visibility is as good as yesterday’s sales,” said Guiony, adding that the company is vigilant yet comfortable in the strength of its brands.