LVMH Watch and Jewelry profits spike
National Jeweler
MARCH 03, 2006 – Paris — Profits from the jewelry and watches category at LVMH Moet Hennessy Louis Vuitton in 2005 increased fivefold to $45.7 million, the company announced.
The luxury conglomerate attributed the growth to strong performances by TAG Heuer and new products with in the Aquaracer, Link and Carerra ranges and the gold watches the brand designed with Tiger Woods. The group’s Zenith brand benefited at the high end with the Starissime, the first ladies’ watch with a tourbillon. Dior Watches’ Christal line also performed well for the year.
In Europe and Asia, the Chaumet brand showed strong growth for jewelry and watches.
Overall, LVMH posted a 16 percent profit growth in recurring operations in 2005 for a total of $3.3 billion on revenue of $16.3 billion, an operating margin of 20 percent.
The group attributes the growth to robust momentum in organic growth by all business groups and geographic regions despite the negative exchange rates throughout the year.
