Jewelry Sales Strong at LVMH as Profit Passes €6B For First Time

(IDEX Online News) – LVMH Moët Hennessy Louis Vuitton, the global luxury products group, posted a 4-percent rise in revenue to €29.1 billion in 2013 ($39 billion).

The firm said it “maintained good momentum in the United States and Asia, and continued to grow in Europe, despite the challenging economic environment.”

Profit from recurring operations rose to €6.02 billion ($8 billion), an increase of 2 percent over the strong growth recorded in 2012.

Bernard Arnault, Chairman and CEO of LVMH, said: "2013 saw another excellent performance from LVMH despite exchange rate volatility and slower growth in the European markets. Profit from recurring operations exceeded €6 billion for the first time.

“All our brands have proven to be exceptionally dynamic. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy. In 2014, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy."

The luxury retailer said that results from its Bulgari jewelry brand were excellent”.

The Watches & Jewelry business group recorded organic revenue growth of 4 percent in 2013. Profit from recurring operations rose 12 percent.

“An excellent performance in the directly owned boutiques, where the network continues to expand around the world, contributed to strengthening the image of the brands and the quality of their distribution. The LVMH watch brands continued to invest in innovation and development of industrial capacity, such as the new TAG Heuer movement manufacturing facility. In Jewelry, the success of Bulgari’s Serpenti line was confirmed and the new high-end jewelry Diva collection achieved excellent results. Presence in multi-brand stores continues to be more selective.

“Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2014. The group will maintain a strategy focused on developing its brands by continuing to build on their savoir-faire, as well as through strong innovation and expansion in fast growing markets.

“Driven by the agility of its organization, the balance of its different businesses and geographic diversity, LVMH enters 2014 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods.”