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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.”
Tags: Bulgari, LVMH, LVMH Moët Hennessy Louis Vuitton, Rapaport News, retail, Tag Heuer
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