According to some of the company’s brand CEOs, sales of watches and jewelry at luxury behemoth LVMH surged in the most recent quarter and continued to shine into January after a year of decreases.
Following a decline in the preceding quarters, LVMH announced a 3% improvement in sales for its watches and jewelry segment during its earnings call this week. The business did better than wine and spirits, which fell 8% during the quarter, and the company’s main fashion and leather goods section, which fell 1%.
During LVMH Watch Week in New York, the CEOs of a number of the company’s jewelry and watch businesses expressed their growing optimism for 2025 in interviews. They claimed that although China is still slow, a resurgence in American spending in the US and Europe is fueling a robust demand for jewelry and watches.
“I must admit that the beginning of the year has positively surprised me,” stated Jean-Christophe Babin, CEO of LVMH-owned Bulgari.
Following the U.S. presidential election, Anthony Ledru, the CEO of Tiffany & Co., which LVMH purchased in 2021, stated that he is also witnessing a resurgence of consumer confidence among the wealthy in America.
According to Ledru, it provides transparency and likely boosts consumer trust. To be successful in the luxury market, we must have that positive vibe.
Of course, the optimistic view is not without danger. The biggest unknown for French luxury products and high-end timepieces, which are primarily made in Switzerland, is U.S. tariffs. In Europe, the Trump administration has threatened universal tariffs.
However, in anticipation of a prosperous 2025, watch and jewelry manufacturers are currently introducing a flurry of new products. The new Tambour Taiko Spin Time series from Louis Vuitton’s watch division uses jumping cubes for numerals that were modeled the vintage airport flap displays. The new Gentissima Oursin Fire Opal, which is composed of 137 orange and red opal gems that are extracted from Mexican volcanoes, was introduced by the company’s Gerald Genta line.
“I have a decades-long plan to make Louis Vuitton one of the most respected watchmakers among top collectors known for high complications and craftsmanship, and commanding high prices,” said Jean Arnault, director of Louis Vuitton timepieces, who also handles the Genta and Daniel Roth brands.
“We’ll probably have to wait a whole generation before Louis Vuitton becomes synonymous with watchmaking in the wider world,” he remarked. Making sure people are aware that Louis Vuitton watches are of the highest caliber and that they are unquestionably such is what matters to me. High-complication and expensive pieces are our main focus.
Sales have increased since the announcement in October, according to TAG Heuer, which just struck a deal with Formula 1 to replace Rolex as the official timekeeper. The brand debuted a new Formula 1 line featuring chronograph movements and dazzling displays during LVMH Watch Week. According to TAG Heuer CEO Antoine Pin, the F1 announcement had an immediate positive impact on sales.
“Any announcement we make with F1 is immediately causing significant reactions, which surprised me,” he remarked. Furthermore, social media’s advantage is that its impact can be swiftly assessed. Additionally, we have witnessed extremely great replies as well as a huge growth of the reaction. Thus, it was a wise choice.
During its earnings call, LVMH reported that Tiffany’s same-store sales increased by 9% in the fourth quarter. During the holiday season, Tiffany’s flagship Landmark shop on Fifth Avenue in Manhattan had high sales and long lineups of customers. LVMH spent hundreds of millions to redesign the store, which now has a well-known Blue Box Cafe by Daniel Boulud and a new VIP suite on the tenth level with views of Central Park, exquisite art, rare Tiffany lamps, and expensive jewelry that costs six or seven figures.
Since LVMH purchased the jewelry manufacturer, Tiffany’s average price point has doubled, according to CEO Ledru. The firm has been able to swiftly go upmarket by modernizing its retail locations, emphasizing luxury jewelry, and introducing its new iconic collections, which are based on classic Tiffany designs.
According to Ledru, the hardware line is its best-selling item, particularly the gold chain-link necklace, which retails for more than $19,000.
“It’s quite a dramatic change,” he added. We targeted a customer who spends more money, stays in the store longer, and interacts with the brand at a higher price point. It’s hard. It is an extremely unique ecology. The higher you grow, the more you need to have fantastic stores, fantastic employees, fantastic merchandise, fantastic events, and communication that complements all of that.
As the Chinese Lunar New Year officially began on Wednesday, Bulgari, whose biggest market has historically been China, is expecting for a boost in sales during the year of the snake in the Chinese zodiac.
Although the Chinese economy is now struggling, there are indications that government assistance could begin restoring consumer confidence this year, according to Babin, CEO of Bulgari.
According to him, Bulgari’s well-liked Serpenti Viper collections—which are inspired by viper snakes—are best-selling.
Since this year is the year of the snake and Serpenti is Bulgari’s emblem, he argued, this year ought to be Bulgari’s.
The clientele of the business is also changing as a result of the growing wealth that women worldwide possess due to increased incomes, entrepreneurship, and inheritances. Women are now purchasing jewelry for themselves, when before a significant portion of sales went to men who were purchasing it as gifts.
Most nations now have true gender equality, according to Babin. There is a revolution in luxury since women’s purchasing power is extremely similar to men’s.
Regarding tariffs, the CEOs of LVMH stated that they must wait for the policies to be announced before making any arrangements. However, they stated that since they deal with tariffs and duties in other nations, a raise in the US might not cause too much trouble.
Furthermore, thanks in part to the strong dollar, Americans are already visiting Europe to purchase luxury products. Rich Americans may decide to purchase their Louis Vuitton watches or Bulgari bracelets in Europe if tariffs in the US rise to a high enough level.
According to Jean Arnault, many of our clientele take international trips. Therefore, it is the same for us whether they purchase a piece in the United States or Europe.
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