After a period of decline, LVMH’s watch and jewelry division experienced a rebound in sales during the latest quarter, with growth continuing into January. The division reported a 3% increase, outperforming the company’s core fashion and leather goods segment, which declined by 1%, and its wine and spirits business, which fell by 8%. The resurgence is largely fueled by renewed spending from American consumers, both domestically and in Europe.
Jean-Christophe Babin, CEO of Bulgari, expressed optimism for the year ahead, citing strong demand for high-end jewelry. Tiffany & Co. CEO Anthony Ledru also noted an increase in consumer confidence among affluent Americans, attributing it to greater economic clarity following the U.S. presidential election.
LVMH brands are introducing new collections to sustain the momentum. Louis Vuitton launched its “Tambour Taiko Spin Time” watch, featuring innovative jumping cubes inspired by airport displays. The Gérald Genta line debuted the “Gentissima Oursin Fire Opal,” showcasing rare gemstones from Mexican volcanoes. Jean Arnault, director of Louis Vuitton watches, outlined a long-term vision to establish the brand as a leader in high-end watchmaking.
TAG Heuer, which recently replaced Rolex as the official timekeeper for Formula 1, has already seen a boost in sales following the partnership announcement. The company introduced a new Formula 1 collection with vibrant dials and chronograph movements, and CEO Antoine Pin noted that the collaboration immediately generated a strong consumer response.
Tiffany & Co. reported a 9% increase in same-store sales during the fourth quarter. Its flagship Landmark store in New York’s Fifth Avenue performed exceptionally well during the holiday season, attracting long lines of visitors. The company has repositioned itself as a premium brand, doubling its average price point since LVMH’s acquisition in 2021. Its top-selling collection, “Hardware,” features gold chain-link necklaces priced above $19,000.
Bulgari anticipates increased sales in China with the arrival of the Year of the Snake, given the popularity of its “Serpenti Viper” collection. CEO Babin acknowledged the challenges in the Chinese economy but remains hopeful that government stimulus will boost consumer confidence.
While potential U.S. tariffs remain an industry concern, LVMH executives believe they can manage policy changes without major disruption. The strong dollar is already encouraging affluent Americans to purchase luxury goods in Europe, which could offset potential tariff-related price increases in the U.S.
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