LVMH Annual Watches & Jewelry Sales €2.994 Billion

Luxury products group LVMH announced 2006 profit €3,172 million, an increase of 16 percent over 2005. Revenue rose to €15.3 billion, an organic growth of 12 percent to which all business groups and every region contributed. The watches and jewelry business group recorded organic revenue growth of 28 percent.

Led by a strong performance of their leading watch brands, sales growth of the Watches & Jewelry group outpaced that of the industry. Group annual revenues were €737 million, rising 26 percent on a reported basis and 28 percent on an organic basis (With a comparable structure and at constant exchange rates).

Profit nearly tripled, growing 281 percent in 2006 to €80 million compared to €21 million in 2005. Operating margin rose to 11 percent in 2006.

The De Beers diamond jewelry stores recorded strong revenue growth in Japan, the UK, and the US, and opened inaugural stores in Dubai and Taiwan, LVMH reported, without supplying specific figures.

TAG Heuer again grew its market share and reportedly posted an “excellent” performance worldwide. The brand’s Aquaracer and Carrera lines have been very strong. Zenith improved its growth in the U.S., Europe and in Asia and successfully introduced its sports line Defy.

LVMH Chairman and CEO Bernard Arnault expressed confidence in continued growth. “In a difficult currency environment at the beginning of this year, we will rely on the strength of our growth model, the exceptional innovation of our brands and the talent of our teams to make 2007 another year of strong growth,” Arnault said.

The company plans to continue its strategy of concentrating on internal growth and the development of its leading brands, setting an objective of “a significant growth” in 2007.