LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury group, recorded revenues of EUR 42.6 billion in 2017, an increase of 13% over the previous year. The group also shows a sustained growth in organic revenues, with a 12% increase. The group profit is up 18%, at EUR 8,293 million. All business divisions recorded double-digit organic growth, with the exception of Wines and Spirits. For what is our main concern here, the watchmaking industry, LVMH (owner, among others, of TAG Heuer, Hublot, Zenith and Bulgari) reports an “Excellent year for Bvlgari and good progress at Hublot and TAG Heuer”.
The revenues of the Watch and Jewelry Division increased by 10% in 2017 (+12% with comparable structure and exchange rates), from EUR 3,468 million to EUR 3,805 million. A progression of 9% has been recorded over the last quarter. Profitability is also up 12% over the year in this division. The Watch and Jewelry Division is composed of the following brands: TAG Heuer, Hublot, Zenith, Dior Watches, Bulgari, Chaumet and Fred.
Among the product launches to support these results, Bulgari introduced new ladies’ watches (Serpenti, B.Zero1 and Diva) and new Octo models for gents. TAG Heuer celebrated the 55th anniversary of the Autavia and presented the Connected Modular 45. Zenith made serious buzz with the launch of its groundbreaking oscillator this fall.
As a reference, Swiss watch exports were up 2.8% over the first 11 months of 2017. The Fédération Horlogère Suisse (FHS) will release figures for the whole year on January 30th. In its latest business statement, Richemont reported sales up 10% at constant exchange rate for the 9 months ending in December 2017. Swatch group will release its 2017 results at the end of February 2018.