LVMH Watches & Jewellery division doubles profit in first half of 2021

After sustaining a loss of €17 million ($AU27.3 million) during the first six months of 2020 due to the COVID-19 pandemic, the division – which includes Bulgari, Chaumet, Fred, TAG Heuer, Hublot, and Zenith in addition to Tiffany & Co. – recorded a profit of €794 million ($AU1.275 billion) in the first half of 2021.

"LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic"

Bernard Arnault, LVMH

This represents a 122 per cent increase compared with the first half of 2019.

LVMH acquired US-based jeweller Tiffany in January 2021 for a record $US15.8 billion, following a protracted negotiation that lasted more than a year and almost culminated in a court battle.

Excluding Tiffany & Co., the Watches & Jewellery division’s profit increased 27 per cent when compared with 2019.

In a statement, LVMH management noted the successful launch of Tiffany’s first men’s engagement ring setting, as well as solid results from Italian jewellery house Bulgari and increased marketing efforts from TAG Heuer and Hublot.

LVMH’s overall results saw revenue increase from €18.4 billion ($AU29.6 billion) in the first half of 2020 to €28.7 billion ($AU46.12 billion) in 2021, largely driven by the recovery of the US and Asian markets and “gradual” improvement in Europe, as well as the outstanding performance of Fashion & Leather Goods, which is consistently its top-performing division.

Bernard Arnault, chairman and CEO of LVMH, said, “LVMH has enjoyed an excellent half-year and is reaping the benefits of having continued to innovate and invest in its businesses throughout the pandemic despite being in the midst of a global crisis.

“The creativity, the high-quality and enduring nature of our products and the sense of responsibility that drives us, have been critical in enabling us to successfully withstand the effects of the pandemic; they will remain firmly embedded in all our Maisons, thereby ensuring their continued desirability,” Arnault added.

He said LVMH was “in an excellent position to continue to grow and further strengthen our lead in the global luxury market in 2021” as the international recovery from the COVID-19 pandemic continues.

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