Key Takeaways:
LVMH's watches and jewelry division posted 9% organic revenue growth in the first half, led by Tiffany & Co. and Bulgari.
"Tiffany and Bulgari's iconic lines" drove the acceleration, LVMH Chairman Bernard Arnault said in the earnings statement.
The division generated €5.2 billion in revenue, with organic growth accelerating to 11% in the second quarter. Operating profit rose 9% to €831 million. The performance outpaced the broader group, where total revenue fell 3% reported to €38.6 billion but rose 2% on an organic basis.
The results confirm Tiffany's successful integration since LVMH's $15.8 billion acquisition closed in 2021. The jewelry brand's momentum provides a buffer as the group's core fashion and leather goods division — its largest segment — posted a 1% organic revenue decline in the half.
Tiffany's Product-Led Turnaround
Tiffany strengthened its iconic product lines, Knot and HardWear, while renovating its store network. The brand named Natalie Portman as its new brand ambassador during the period. Bulgari also achieved strong growth, unveiling a new high jewelry and watch collection called Eclettica that generated record revenue, according to the company.
The watches and jewelry division's operating margin improved during the half, though LVMH did not disclose a specific margin figure for the segment. Group operating margin held at 22.5%.
Group-Wide Context
LVMH's total profit from recurring operations fell 4% to €8.7 billion, while net profit was stable at €5.7 billion. Operating free cash flow rose 2% to €4.1 billion. The selective retailing business, anchored by Sephora, posted 5% organic revenue growth and continued gaining market share globally.
The fashion and leather goods division, home to Louis Vuitton and Christian Dior, returned to organic growth in the second quarter, rising 1%, after a weak first quarter. Louis Vuitton celebrated the 130th anniversary of its Monogram canvas and opened new flagships in Beijing and Seoul.
What This Means for Investors
The 9% growth in watches and jewelry signals that LVMH's high-margin hard luxury strategy is gaining traction, offsetting softness in fashion leather goods. Investors will watch the second-half performance for continued acceleration, particularly as the group enters the holiday season with Tiffany's expanded product lineup and renovated stores.
This article is for informational purposes only and does not constitute investment advice.
