LVMH Watch & Jewelry Sales €417 Million in H1

LVMH reported revenues of €7.8 billion ($12.14 billion) in the first half of 2008, reflecting 12 percent organic growth. Sales by the watch and jewelry group increased 15 percent in terms of organic growth, with profits rising 30 percent to €74 million ($115 million).

The luxury firm said that its joint venture diamond jewelry retail operation with De Beers continued to see sustained growth with the expansion of its store network, and that Chaumet grew thanks to a number of launches.

The TAG Heuer and Zenith brands also did well, while the Christian Dior watches strengthened its synergies with fashion and jewelry. During the first half LVMH bought the Hublot brand.

The firm reported that profit from recurring operations increased by 7 percent to €1.541 billion ($2.4 billion). At constant exchange rates, profit from recurring operations increased by 19 percent.

According to LVMH Chairman and CEO Bernard Arnault, first-half results demonstrated “the exceptional appeal of our brands as well as the effectiveness of our strategy, particularly remarkable given the adverse currency and economic environment.”

In its outlook for the rest of the year, LVMH said it will continue to grow due to numerous product launches planned before the end of the year and to geographic expansion.

“Reassured by the strong momentum in the first half of the year, the [LVMH] group approaches the second half with confidence,” Arnault said.