LVMH’s watch and jewelry division was hit hard by the COVID-19 pandemic in 2020, with revenue falling 23% over the year.
Sales improved during the fourth quarter, though they still fell 2%.
Profit from recurring watch and jewelry operations sank 59%.
The watch and jewelry division suffered sharper sales and profit drops than LMVH as a whole. In 2020, LVMH’s revenue dropped 16% compared to the prior year, while profit dropped 28%. However, in the second half of the year, profits rose 7%.
Despite the declines, the group said the watch and jewelry division enjoyed a “strong rebound in China in the second half of the year.”
It listed the following highlights of the watch and jewelry division over the last year:
– Bulgari “capitalized on the strong recovery in China” and successfully launched the Serpenti Viper, B.Zero1 Rock, and Barocko collections.
– Chaumet inaugurated its new store at Paris’ Place Vendôme at the beginning of the year and strengthened its presence in China.
– TAG Heuer celebrated its 160th anniversary with several limited editions in the Carrera collection and launched its third-generation smartwatch.
– And, of course, LVMH completed its purchase of Tiffany & Co., the largest purchase in its history. Shortly after the purchase was completed this month, LVMH installed new leadership at the jeweler, appointing jewelry veteran Anthony Ledru as CEO and Alexandre Arnault, the son of LVMH’s chairman and CEO Bernard Arnault, as its executive vice president.
“LVMH showed remarkable resilience against the unprecedented health crisis the world experienced in 2020,” said Bernard Arnault in a statement. “Our priority has been to protect the health and safety of our employees and our clients and we have provided direct support in the fight against the pandemic.”
He said LMVH’s brands “have shown great agility and creative energy” during the pandemic. The company has “cautious confidence” that it will return to growth in 2021.
Top: TAG Heuer Carrera Chronograph Jack Heuer Birthday Gold Limited Edition (photo courtesy of TAG Heuer)
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine
