Jeweller - August 2021

LVMH Watches & Jewellery division doubles profit in first half of 2021
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.
This was largely attributed to the robust US and
Asian markets and a “gradual recovery” in Europe,
as well as outstanding performance in Fashion
& Leather Goods, which is consistently its topperforming
division.
The excellent results follow the successful integration of Tiffany & Co. into the LVMH portfolio. Image: Tiffany & Co.
'Tiffany T1' 2021 campaign.
French luxury conglomerate Moët Hennessy
Louis Vuitton has recorded bumper results for
the first half of 2021, with its Watches & Jewellery
division significantly boosted by the acquisition of
Tiffany & Co.
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. 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.
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.