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LVMH's Jewelry, Watch Sales +3% in 2014

Feb 3, 2015 12:17 PM   By Jeff Miller
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RAPAPORT... LVMH reported that revenue rose 10.1 percent year on year to $10.6 billion (EUR 9.241 billion) in the fourth quarter that ended on December 31 and full-year sales rose 6 percent to $35 billion (EUR 30.64 billion). Profit for the year from recurring operations fell 5 percent to $6.5 billion (EUR 5.715 billion), with the watch and jewelry segment dropping the most -- by 23 percent -- to $323 million (EUR 283 million). Operating profit rose 2 percent to $3.6 billion (EUR 3.189 billion) for fashion and leather goods, but it fell 16 percent for wines and spirits to $1.3 billion (EUR 1.147 billion) and it was down 3 percent to $1 billion (EUR 882 million) for selective retailing. Still, the group's share of net profit jumped 64 percent to $6.5 billion (EUR 5.648 billion) in 2014.

The watch and jewelry division experienced a strong fourth-quarter sales cycle, given that revenue rose 5.6 percent year on year to $925 million (EUR 810 million). Sales for the full year increased 3.2 percent to $3.2 billion (EUR 2.782 billion).  The luxury goods retailer observed organic revenue growth of 4 percent for watches and jewelry, with strong performance from jewelry against "cautious purchasing" behavior for watches. Bulgari recorded strong growth due to its iconic lines and watch collections, led by its new Lvcea watch for women. Jewelry maisons continued to "selectively invest" in their distribution network and production capacity, according to the firm.

Bernard Arnault, the chairman and CEO of LVMH, said, “The 2014 results confirm the capacity for LVMH to progress despite economic and currency uncertainty. Revenue and net profit reached new record levels. Commitment to excellence, a passion for quality and our capacity to innovate underpin our growth momentum  are all values epitomized by the Fondation Louis Vuitton and its emblematic building, inaugurated in October 2014. The year was also marked by the arrival in the group of Loro Piana, which saw a good performance. LVMH reached an agreement with Hermès and disposed of its stake in this company, in the form of a distribution to our shareholders. In 2014, all our maisons demonstrated outstanding flexibility. 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 our leadership in the world of high-quality products.”

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Tags: Bulgari, Consumer Spending, Jeff Miller, Jewelry, LVMH, maisons, watches
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