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RAPAPORT... LVMH reported that a weaker euro helped to push the sales total of watch and jewelry up 19 percent year on year to $765 million (EUR 723 million) in the first quarter that ended on March 31. On a constant-exchange-rate basis, which LVMH defines as "organic" growth, the increase was 7 percent. Overall, LVMH recorded group revenue of $8.8 billion (EUR 8.323 billion), which was up 16 percent on a reported basis, but when the impact of the weaker euro was removed, organic growth totaled 3 percent. The euro has fallen approximately 23 percent against the dollar in the past 12 months.
The watch and jewelry division experienced strong momentum during the quarter with the success of Bulgari's new Lvcea watch for women, according to LVMH. Hublot experienced a strong start to the year, while TAG Heuer refocused on its core offering. LVMH introduced several innovations at the Basel show and announced a partnership between TAG Heuer, Google and Intel to launch a smartwatch later this year. Jean-Christophe Babin, the head of LVMH's watch and jewelry division, told Reuters in March that Bulgari anticipated that same-store sales growth in 2015 would be in the "double digits." LVMH owns TAG Heuer, Hublot, Zenith, Montres Dior, Bulgari, Chaumet and Fred, and it jointly operates De Beers Diamond Jewellers through a partnership with De Beers. Roughly 33 percent of the jewelry division's revenue is derived from operations in Europe, while 26 percent comes from operations across the Asian continent, 13 percent from Japan, 12 percent from the U.S. and 16 percent from all other markets. The luxury group will hold its annual general meeting on April 16.
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