LVMH Q1 Watches & Jewelry Sales Rise 27%

Luxury group LVMH reported strong growth in the first quarter of 2007, recording €3.8 billion revenue. Organic revenue (revenue with a comparable structure and at constant exchange rates) increased 13 percent compared to 2006.

The Watches and Jewelry business group had revenues of €189 million, rising 20 percent on a reported basis, and 27 percent on an organic basis, becoming LVMH’s fastest growing business group.

TAG Heuer performed exceptionally well in all regions LVMH reported. Zenith and Montres Dior also saw strong growth thanks most notably to their respective lines Defy and Christal. Chaumet benefited from the success of its jewelry collection Attrape-moi and Dandy watches.

LVMH noted that new products launched at the Basel fair have been very well-received: TAG Heuer’s new watch movement Calibre S, Zenith’s strengthening of its Defy line, and Montres Dior’s Christal jewelry with Sharon Stone as the face of its new advertising campaign.

All business groups recorded double-digit organic revenue growth in the period. The U.S., Asia and Europe performed particularly well due to continued high demand from both local clients and tourists.

Fashion and leather goods recorded 10 percent organic revenue growth in the first quarter of 2007, totaling €1,347 billion.