Jeweller – February 2024

News
Pandora on top: Strong sales
performance continues
LVMH reports record sales despite adverse economy
Luxury conglomerate Louis Vuitton Moët
Hennessy (LVMH) has published its financial
report for the past financial year, announcing a
strong increase in revenue.
Group revenue increased by nine per cent to
a record €86.15 billion ($AU141.97 billion)
despite a slowdown in sales in the second half
of the year.
LVMH chairman Bernard Arnault highlighted
the reopening of Tiffany & Co’s ‘Landmark’
location in New York City and the reception of
Louis Vuitton and Christian Dior collections at
fashion shows as important milestones.
The world’s largest mass-market jewellery brand,
Pandora, has published a preliminary fourth-quarter
financial report outlining strong sales during the
holiday season.
Revenue increased by 12 per cent, while like-for-like
sales improved by nine per cent in the three months
ending 31 December.
Total revenue for 2023 reached kr28.1 billion ($AU6.14
billion), a significant increase from the kr26.5 billion
($AU5.79 billion) in sales the previous year.
CEO Alexander Lacik said these results showed that
the brand remains popular with consumers.
“We are very pleased with our results across the peak
trading season and how we closed 2023. It’s clear
that our brand resonates well with consumers and
continues to gain strength,” Lacik said.
“The success in 2023 is also a testament to the great
work of Pandora teams around the world, who have
helped take the Phoenix strategy to the next level.”
Sales in the US improved by 10 per cent, while revenue
in Europe increased by five per cent. Sales declined in
China by 12 per cent and in Australia by six per cent.
According to chief financial officer Anders Boyer, the
company will remain focused on appearances at
fashion events in the new year.
“We’ve raised the game starting a year back,
putting more money behind not just driving
awareness of the brand, but driving desirability as
well,” Boyer told WWD.
“We are participating in those kinds of events in order
to show that even though we are an accessible luxury
brand from a price perspective, we also know what’s
on trend, and we can be part of creating what’s on
trend as a company.”
Audited full-year results are expected to be published
on 7 February.
“Our performance in 2023 illustrates the
exceptional appeal of our Maisons [brands]
and their ability to spark desire, despite a year
affected by economic and geopolitical challenges.
The Group once again recorded significant growth
in revenue and profits,” he said.
“Our growth strategy, based on the
complementary nature of our businesses,
as well as their geographic diversity,
encourages innovation, high-quality design
and retail excellence and adds a cultural and
historical dimension thanks to the heritage of
our Maisons.”
For the year, sales in the watches and
jewellery division increased by three per
cent to €10.90 billion ($AU17.95 billion), with
fourth-quarter revenue reaching €2.95 billion
($AU4.86 billion).
“While remaining vigilant in the current
context, we enter 2024 with confidence, backed
by our highly desirable brands and our agile
teams,” Arnault added.
Weathering the storm: Richemont pleased with
improving consumer demand in Asia, US markets
Jewellery was the top-performing division of
Swiss luxury goods company Richemont in the
past quarter off the back of increasing demand
in Asia and the US.
Sales at Cartier, Van Cleef & Arpels, and
Buccellati improved by six per cent on a yearon-year
comparison, reaching €3.95 billion
($AU6.54 billion) for the three months ending 31
December.
The statement attributed the sales increases to
positive sales in the US and the return of tourism
to Hong Kong and China. The report also
detailed a weaker retail performance in Europe.
“Wholesale sales were four per cent above the
prior-year period, sustained by strong sales at
the jewellery maisons [brands], which more than
offset a softer performance across the rest of the
“For LVMH, it provides a new opportunity to
reinforce our global leadership position in
luxury goods and promote France’s reputation
for excellence around the world.”
By market capitalisation, LVMH is the
world’s 18th largest company at $US418.8
billion ($AU636 billion), overseeing 75 brands
including Tiffany & Co, Bulgari, Kering, and
TAG Heuer.
group,” the statement reads.
Sales at specialist watchmakers, including IWC
Schaffhausen, Piaget. and Vacheron Constantin,
declined by one per cent to €939 million
($AU1.55 billion).
Richemont chief financial officer Burkhart Grund
told Reuters that brand recognition was crucial
to weathering the storm in an adverse economy.
"In times of, let's say, economic uncertainty,
it helps to be a highly recognised and highly
respected jewellery brand through the power of
iconic product lines," he said.
"This reassures customers not just in jewellery,
but also in watches."
Total group revenue increased by four per cent to
€5.59 billion ($AU9.25 billion).
16 | February 2024