Tag Heuer, one of LVMH's top performing watch brands
LVMH doubles watch and jewellery profits
Posted February 08, 2011 | By Sonia Nair
LVMH’s watch and jewellery division recorded the biggest leap in profits, with a 103 per cent increase in 2010 compared with the year before.
Watch and jewellery profits more than doubled from €63 million ($84 million) in 2009 to €128 million ($171 million) in 2010.
Total revenue in in this category rocketed 29 per cent from 2009 to €985 million ($1.32 billion) in 2010. This was the best performance increase of any LVMH division.
Watch and jewellery revenue increased steadily from the first quarter of 2010 through to the fourth, with the fourth quarter recording the highest revenue figures.
The group’s overall revenue increased by 19 per cent in 2010, exceeding the €20 billion ($27 billion) mark for the first time.
The luxury group attributed the positive figures to the strong performance of LVMH’s high-profile brands and the economic recovery.
Chairman and chief executive of LVMH, Bernard Arnault said, “2010 was a great vintage for LVMH. The quality of our products, the originality of our brands and the talent of our teams bolstered by the economic recovery allowed us once again to gain market share throughout the world.”
Jewellery companies such as Chaumet, De Beers and Fred recorded solid revenue growth in their Asian and European markets while watch brands like Tag Heuer, Hublot and Zenith performed strongly with the release of new watch movements and collections.
The luxury group is optimistic in its outlook for 2011 and revealed that it wants to develop its brands and expand in high-potential markets.
“LVMH enters 2011 with confidence and has set itself the objective of increasing, once again, its global leadership in luxury goods,” the group said in a statement.
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