LVMH recorded sales of €8.6 billion (AU$12.6 b) for the first quarter of 2016, a 4 per cent increase compared to the previous corresponding period.
The company’s watches and jewellery segment reported a 7 per cent rise in sales, representing the largest revenue increase of all LVMH businesses apart from perfumes and cosmetics, which also reported a 7 per cent lift.
Watches and jewellery, however, was the smallest division in terms of sales by dollar value, recording €774 million (AU$1.1 b). By comparison, the fashion and leather goods division generated the most revenue for the group – €3 billion (AU$4.4 b) – but achieved a 0 per cent adjustment in sales.
An LVMH statement highlighted the “excellent performance” of jewellery brand Bulgari in the first quarter. The result was attributed primarily to the brand’s “iconic jewellery collections and innovations”.
Tag Heuer was also said to have had a “good quarter”, with the statement describing the watch brand’s new Connected smartwatch – which launched in November 2015 – as an “immense success”.
“A number of LVMH watch brand innovations were extremely well received at the Basel Watch [sic] fair,” the statement added.
In terms of performance across various territories, the statement read: “The US market is strong and Europe remains well oriented except for France, which is affected by a fall in tourism. Asian markets are varied, but Japan continues to progress.”
Watch and jewellery brands that fall under the LVMH banner include Bulgari, Tag Heuer, Hublot, Zenith, Chaumet, Fred and De Beers Diamond Jewellers (a joint venture with De Beers Group).
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