Despite a gloomy economic backdrop luxury products group LVMH’s Jewellery and Watches division saw profits leap by 53% in 2015.
In a difficult global market for luxury jewellery sales with contracting international markets, unfavourable currency rates and geopolitical instability, LVMH’s jewellery and watches division saw revenues swell to €3.31bn (£2.54bn) in 2015 from €2.78bn (£2.14bn) in 2014, a 19% increase.
Organic growth, based on ‘comparable structure and exchange rates’ was reported as 8%, meaning LVMH benefited by 10% from exchange rates and another 1% in structural changes.
Profits from recurring operations of the Jewellery & Watches division also leapt a staggering 53%, from €282m (£217m) in 2014 to €432m (£332m) last year.
LVMH’s jewellery brands include Bvlgari, Chaumet, Fred and De Beers Diamonds. While the LVMH 2015 report doesn’t list the performance of the group’s individual brands it praised the performance of:
Bvlgari – “Bvlgari continued to thrive in terms of both revenue and profits, delivering a remarkable performance in jewellery thanks to the success of the emblematic Serpenti, Bvlgari-Bvlgari and B.Zero1 product lines and the new Diva collection. Fine jewellery made spectacular gains with a contribution from the new Giardini Italiani collection, inspired by the creative artistry of Italian gardens and epitomizing the brand’s peerless mastery of exceptional colored gemstone arrangements.”
Chaumet – “Chaumet had a year of strong growth, driven by its emblematic lines and a gradual move upmarket.”
De Beers – “De Beers consolidated its position as the leading reference in the solitaire diamonds segment.”
Fred – “Fred was buoyed by its iconic Force 10 line and opened a new flagship boutique in Paris.”
The report also stated that total group revenue in 2015, which includes 70 luxury brands such as Louis Vuitton, Hennessy, Moet Chandon, Fendi and Givency was €35.7bn (£27.4bn) with €6.6bn (£5bn) in profits, up 16% on the previous year.