Jeweller - May 2022

News
Luxury jeweller reports strong sales
despite on-going Ukrainian conflict
French luxury conglomerate Louis Vuitton Moët Hennessy (LVMH)
has reported a strong 2022 first quarter performance marking a
strong rebound from the COVID-19 slump and challenges wrought by
Russia’s invasion of Ukraine.
Despite its withdrawal from operating in Russia, the group posted
total revenues of €18 billion ($AUD26.38 billion) marking a 29 per
cent increase compared with the same period in 2021, while organic
revenue increased by 23 per cent.
The watches and jewellery business increased by 24 per cent at €2.34
billion ($AUD3.43 billion) for Q1 when compared against the same
period in 2021 at €1.88 billion ($AUD2.76 billion).
“LVMH had a good start to the year against a backdrop of continued
disruption from the health crisis and marked by the dramatic events in
Ukraine,” a company statement announced.
Double-digit revenues were recorded across all business groups,
especially in the US and Europe except for wine and spirits which was
hounded by challenges in the supply chain.
Surprisingly, the Asian market experienced an increase in sales
despite China’s reimposed health restrictions in March.
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“The LVMH Group is closely monitoring developments in Ukraine
and the region,” noting the group’s foremost priority is the safety
of employees in Ukraine and “provide them with all the necessary
financial and operational assistance.”
The LVMH Group - which owns Bulgari, Chaumet, and Fred, TAG
Heuer, Zenith, and Hublot – has ceased store operations in Russia
together with Richemont, Hermes, Chanel and Kering Group in light of
the ongoing Russian invasion of Ukraine.
The decisions followed Swatch Group - which owns Omega, Longines,
Tissot, and Breguet, among others – which announced it has
suspended exports and trading operations after economic sanction
measures were imposed on Russia.
Colour diamonds shine at Christie’s
Colour diamonds dominated the Christie’s New York ‘Magnificent
Jewels’ auction, led by the 8.8-carat pink diamond dubbed ‘The Fuchsia
Rose’ which was sold for $US6.7 million ($AU9.1 million).
The stone – a potentially internally flawless fancy intense purple-pink
diamond – is a pear-shaped diamond set on a platinum ring flanked by
two 6.1-carat colourless diamonds.
The tender resulted in 68 of the 71 lots being sold at an estimated value
of $US25.1 million ($AU34.1 million).
Among the other standouts of colour diamond pieces were a 2.44-carat
fancy intense pink diamond sold for $US1.6 million ($AU2.17 million)
and a 15.31-carat vivid yellow diamond ring that fetched around $US1.3
million ($AU1.77 million).
White diamonds also showed strong results, highlighted by a
51.28-carat brilliant-cut round diamond ring sold for more than $US1.6
million ($AU2.17 million) and a 9.56-carat Bulgari diamond ring that
fetched $US630,000 ($AU855,858).
This month, Christie’s will auction a 228.31-carat pear-shaped white
diamond, dubbed ‘The Rock’, which is expected to fetch around $US30
million ($AU40.50 million) during the Luxury Week tender in Geneva.