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Bulgari Strength Fueling Jewelry’s Growing Dominance Over Watches at LVMH

Oct 29, 2015 4:29 AM  
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RAPAPORT... The strength of the Bulgari brand against the “repositioning” TAG Heuer label is largely responsible for the widening gap between LVMH Moët Hennessy Louis Vuitton’s sales figures for jewelry and watches, according to a senior LVMH figure.

“Yes, the gap is widening a bit,” Chris Hollis, the director of financial communications, said in the group’s third-quarter results conference call October 13.

The group’s overall watches and jewelry sales rose 22 percent year-on-year to $2.7 billion for the first nine months, it announced in a statement October 12. A document released on the company’s website October 13 highlighted its strong jewelry performance, especially in the Bulgari brand.

“Although when you look at this gap, it's a little bit artificial as you compare watches for Bulgari, which are benefiting from the strengths of the brand, but also watches from TAG Heuer, which is in a sort of repositioning phase.”

Jewelry sales at the luxury product retailer have been outperforming watches “for a while,” Hollis said in the call.

“[Jewelry] is really [strong] throughout the board and true with local customers and tourists. Then, when we talk jewelry, we are mostly talking aboutBulgari. So is it a category comment or a brand-specific comment? I leave you draw your own conclusion.”

Meanwhile, LVMH has appointed Anish Melwani as chairman and chief executive officer of LVMH Inc. from January 4, responsible for the group’s activities in North America, LVMH said in a statement October 27. Melwani is currently co-head of McKinsey & Company’s global strategy and corporate finance practice, the statement said.

Pauline Brown will step down from her role as North America chairman at the end of 2015 "to pursue other opportunities," the company confirmed in a separate statement October 27.
Tags: , Bulgari, Jewelry, LVMH Moët Hennessy Louis Vuitton, retail, Tag Heuer, watches
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