LVMH Buoyed by Resurgent Jewelry Sales

RAPAPORT... LVMH saw sales of watches and jewelry triple in the first half of 2021, boosted by its Bulgari brand, the acquisition of Tiffany & Co., and a strong rebound in demand.Revenues in the category jumped to EUR 4.02 billion ($4.74 billion) in the six months ending June 30, compared to EUR 1.32 billion ($1.55 billion) a year ago. LVMH reported Monday. Sales for the segment also beat pre-pandemic levels, increasing 5% versus the same period of 2019 on an organic basis. Profit for the division came to EUR 794 million ($935.4 million), up from a loss of EUR 17 million ($20 million) in 2020. However, profit more than doubled over 2019.Local demand in Asia and the US was solid, Chris Hollis, director of financial communications for LVMH, explained in an earnings call transcribed by Seeking Alpha. Sales were strong at Bulgari's self-operated stores, which had success with new lines of B.Zero1, Serpenti Viper and Serpenti Seduttori watches, Hollis added, while Chaumet's new exhibition at its recently refurbished flagship in Paris proved popular. Timepiece brand Tag Heuer benefited from its new partnership with Porsche.Meanwhile, Tiffany, which the French luxury conglomerate acquired in January, performed "extremely well" in the first half, and its integration into the company had a "positive impact" on watches and jewelry, LVMH noted.Group revenue soared 56% year on year to EUR 28.67 billion ($33.77 billion) for the first half and 14% versus 2019. Net profit more than quadrupled to EUR 7.63 billion ($8.99 billion) compared to the previous year and climbed 44% relative to 2019.Image: A Bulgari store on Fifth Avenue in New York. (Shutterstock)