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LVMH’s 2015 Jewelry Sales +19% as Bulgari Performs Strongly
Feb 4, 2016 7:46 AM
By Rapaport News
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RAPAPORT... LVMH Moët Hennessy Louis Vuitton reported
watch and jewelry revenue grew 19 percent to $3.69 billion (EUR 3.31 billion)
in 2015 over the previous year on stronger Bulgari results and a successful
refocusing of TAG Heuer. Taking into account exchange-rate fluctuation and with
a “comparable structure,” sales in the jewelry and watch division advanced 8
percent.
Profit from recurring operations in the watches
and jewelry division surged 53 percent to $481.8 million while the operating
margin improved by 2.9 percentage points to 13.1 percent, according to the
company’s 2015 annual report.
Jewelry brand Bulgari had
an “excellent” year, driven by its “iconic creations” and its new Diva and
Lvcea collections, according to a separate statement February 2. The group’s
watch brands were impacted by multi-brand retailers’ cautious buying behavior.
The new TAG Heuer smartwatch enjoyed “enormous success.”
Total company revenue increased 16 percent to $39.78 billion. Net profit
slid 37 percent to $4 million including a capital gain realized in 2014
following the distribution of Hermès shares to LVMH investors. Excluding the
capital gain, profit jumped 20 percent.
The company will
propose a dividend of $3.96 per share, an 11-percent increase.
“Maisons demonstrated outstanding flexibility in 2015,” said
Bernard Arnault, chairman and chief executive officer of LVMH.
“By adapting their strategies to global changes and by
continuing to evolve, they have shown the creativity and entrepreneurship that
drive them forward. In an uncertain economic environment, we can rely on the
desirability of our brands and the agility of our teams to further strengthen
in 2016 our leadership in the world of high-quality products.”
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Tags:
Bulgari, LVMH, LVMH Moët Hennessy Louis Vuitton, Rapaport News, retail, Tag Heuer
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