Global revenue for the watches and jewellery business of luxury group LVMH rose 4% to €2.78 billion in 2014, according to the company’s end of year financial report.
However, profits slumped by 23% to €283 million, which the company attributed to economic uncertainty and a highly competitive market caused a slowdown in purchases by multibrand watch retailers.
Bvlgari gained market share, saw the launch of new versions of the Octo men’s model and of
the very promising Lucea and Diva women’s lines, with Diva winning the jewelry watch prize at the Grand Prix d’Horlogerie de Genève awards, LVMH said in its financial statement.
TAG Heuer refocused on its core offering, adapting its organisation accordingly. While maintaining tight control, the Maisons continued to selectively invest in their distribution network and production capacity, the report continued.
Hublot continued its robust growth, according to LVMH, fuelled in particular by the Classic Fusion line, which made rapid strides alongside the emblematic Big Bang. The brand once again reaffirmed its creativity and upmarket strategy, designing new pieces in women’s jewellery and fine watches.
Zenith continued to develop its collections, particularly the emblematic El Primero, whose communication was enhanced by the partnership entered into with the Rolling Stones, the company stated.
Europe, including France, remained the second largest market in the world for LVMH’s watch and jewellery brands, accounting for 33% of sales compared to 39% from Asia, including Japan.
Markets reponded positively to the financial results, with shares rising 8.1% to €156.25 at the close of trading in Paris on Wednesday, the highest closing price since December 1998 and the steepest gain since May 2010, according to Bloomberg.