Tough market for indies; group’s Q1 jewellery revenue drops to £534m.
The watch and jewellery division at LVMH delivered growth of 2% in the first quarter although reported revenues dipped 1% year on year.
Revenue from watches and jewellery at LVMH hit €624 million (£534.8m) in the first quarter of 2013, down from €630 million (£540m) in the second quarter of 2012.
LVMH said that the watch and jewellery market had proved tough with regards to independent retailers. In a statement the group said of the quarter "this performance was achieved in a context of prudent buying by multi-brand retailers".
Bulgari continued to be the star of the group’s jewellery portfolio, with the Serpenti line delivering strong results. Bulgari also recorded strong revenue growth at its own stores.
Overall the LVMH group delivered a reported 6% increase in revenue in the first quarter of the year, hitting €6.95 billion (£5.95bn). Its selective retailing division delivered the most growth in the quarter, up 16% driven by a strong performance in Asia, followed by wines and spirits, up 6% led by good growth in China and the US.
The luxury goods group said it had registered strong growth in Asia and the US while Europe "demonstrated good resistance despite a challenging economic environment".
The group said: "In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution.
"The group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2013, its leadership of the global high quality goods market.