LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, reported that jewelry and watch sales in 2011 grew by 98 percent, year-over-year, due to the acquisition of Bulagri and a 41 percent increase on a comparable structure basis.
“The agreement with the Bulgari family was one of the key moments of the year,” said Bernard Arnault, LVMH chairman and CEO.
Organic growth (which doesn’t include the Bulgari acquisition, the structural changes or currency fluctuations) totaled a more realistic but still extremely strong 23 percent increase for the period. In fact, in terms of percentage, it was still the best performer for the Paris-based luxury conglomerate.
Jewelry and watch sales for the year totaled 1.95 billion euros ($2.56 billion) driven by strong demand across all geographical regions and product lines.
TAG Heuer successfully launched two products entirely developed and manufactured by its own workshop: the Mikrograph 100 and the Mikrotimer Flying 1000, LVMH said. Hublot continued its innovations with the launch of Masterpieces, the new watch collection of Grandes Complications, and extended its store network. Zenith benefited from the renewal of its emblematic lines. Bulgari reported “excellent” results, the company said. Jewelry brands Chaumet, De Beers and Fred, continued to develop their star collections.
The jewelry and watch division was among all categories of products that led to a successful year for LVMH, which owns luxury brands in fashion and leather goods, wine and spirits, perfumes and cosmetics, and Internet retailing. Louis Vuitton, in particular recorded double-digit revenue growth during the year.
LVMH reported a 16 percent increase in total revenue reaching 23.66 billion euros ($31.07 billion) in 2011. Profit from recurring operations increased by 22 percent to 5.26 billion euros ($7 billion), “a performance which is even more remarkable when compared to the strong growth recorded in 2010,” the company said.
In its outlook, the company said it expects an “excellent” 2012.
“After an exceptional 2011, and despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2012.”