Sales of jewelry and watches at LVMH increased by 167 percent in 2021, thanks to the success of Tiffany & Co. in its first year as part of the group and strong results at the conglomerate's other brands.
Tiffany's sales reached "record" levels, driving up revenue from the segment to EUR 8.96 billion ($10.11 billion), according to LVMH's announcement last week. The success of Tiffany's annual Blue Book collection of high-end jewelry, as well as strong momentum at Bulgari and Chaumet, were cited as reasons for the increase in sales. Sales in the category increased by 103 percent in comparison to the previous year.
Retail sales in the jewelry and watch division increased by 40% when compared to the same period last year, according to comparable-store sales data. According to the company, which acquired Tiffany in January 2021, sales increased 7 percent in comparison to the previous year by the same measure.
Profit amounted to EUR 1.68 billion ($1.89 billion), more than six times the amount earned in 2020. The addition of Tiffany, as well as a low base of comparison with the previous year, when Covid-19 hampered sales, contributed to the increase. In addition, LVMH's profit increased by 128 percent compared to the previous year.
Organic revenue from jewelry and watches increased by 21 percent year on year to EUR 2.8 billion ($3.16 billion) in the fourth quarter of 2019, and was 18 percent higher than in the same period the previous year.
Revenue for the year 2021 increased by 44 percent to EUR 64.22 billion ($72.45 billion), while net profit increased by 107 percent to EUR 17.15 billion ($19.35 billion) as a result of the increase in net profit.