LVMH jewellery division doubles profit
The jewellery division of luxury products group LVMH has doubled its profits in the first half of 2015 compared with the same period last year.
Watches and jewellery recorded organic revenue growth of 10%. Revenue growth was 23% and profit from recurring operations increased by 91%.
Bvlgari had an “excellent” first half driven by the success of its jewellery lines and its new watch for women, Lvcea. Hublot showed “strong progress” while TAG Heuer continued to “refocus on its core offering”. A partnership was concluded between TAG Heuer, Google and Intel for the launch of a smartwatch.
The group as a whole recorded revenue of €16.7 billion (£11.8 billion) in the first half of 2015, an increase of 19% compared with the previous year.
In the second quarter, revenue increased by 23% compared to the same period in 2014. Organic sales growth was 9% marking an increase from the first quarter.
Profit from recurring operations was €2.95 billion for the first half of 2015, an increase of 15%, to which all the business groups contributed.
Group figures
| € millions | First half 2014 | First half 2015 | % change |
|---|---|---|---|
| Revenue | 14 009 | 16 707 | +19% |
| Profit from recurring operations | 2 576 | 2 955 | +15% |
Revenue by business group:
| € millions | First half 2014 | First half 2015 | % change | ||
|---|---|---|---|---|---|
| Reported | Organic* | ||||
| Wines & Spirits | 1 677 | 1 930 | +15% | +2% | |
| Fashion & Leather Goods | 5 030 | 5 933 | +18% | +5% | |
| Perfumes & Cosmetics | 1 839 | 2 159 | +17% | +6% | |
| Watches & Jewellery | 1 266 | 1 552 | +23% | +10% | |
Profit from recurring operations by business group:
| € millions | First half 2014 | First half 2015 | % change |
|---|---|---|---|
| Wines & Spirits | 461 | 482 | +5% |
| Fashion & Leather Goods | 1 487 | 1 661 | +12% |
| Perfumes & Cosmetics | 204 | 248 | +22% |
| Watches & Jewellery | 107 | 205 | +91% |
Bernard Arnault, Chairman and CEO of LVMH, said: “The excellent results of the first half are witness to the efficiency of our strategy, which relies upon the strength of our brands and a very entrepreneurial style of management. Building on the first half performances, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products.”
