After a year of declines, LVMH’s watch and jewelry sales bounced back in the latest quarter and continued strong into January, according to several of the company’s brand CEOs.
During this week’s earnings call, LVMH reported a 3% sales increase for its watches and jewelry division. This outperformed the company’s main fashion and leather goods segment, which dropped 1%, and the wine and spirits division, which fell 8%.
At LVMH Watch Week in New York, executives from several brands expressed growing optimism for 2025. While sales in China remain slow, stronger spending by American consumers in the U.S. and Europe is boosting demand for luxury watches and jewelry.
Jean-Christophe Babin, CEO of Bulgari, said, “I have to say that I’ve been positively surprised by the start of the year.” Anthony Ledru, CEO of Tiffany & Co., added that renewed consumer confidence in the U.S. after the presidential election is helping drive growth.
Ledru said, “We need that feel-good factor to succeed in the luxury world.”
Despite the positive outlook, risks remain. U.S. tariffs on Swiss-made watches and French luxury goods could impact prices. The previous U.S. administration threatened broad tariffs on European products, adding uncertainty for luxury brands.
Still, brands are launching new collections to capitalize on the momentum. Louis Vuitton introduced its “Tambour Taiko Spin Time” watch, featuring “jumping cubes” for numbers inspired by old airport displays. Its Gérald Genta line released the “Gentissima Oursin Fire Opal,” made with 137 opal gems from Mexican volcanoes.
Jean Arnault, Louis Vuitton’s watch director, said he aims to build the brand’s reputation over decades. “We want Louis Vuitton watches to be known for high quality, complex designs, and high price points,” he said.
TAG Heuer, recently named the official timekeeper for Formula 1, reported a sales boost since the announcement in October. CEO Antoine Pin described the impact as “overnight” and praised social media for quickly amplifying the response. The brand also launched a new Formula 1 collection with bright dials and chronograph features at the event.
On the jewelry side, Tiffany saw a 9% rise in same-store sales in the fourth quarter, LVMH said. Its flagship store on Manhattan’s Fifth Avenue attracted long holiday lines after a major renovation, which included a Blue Box Cafe by Daniel Boulud and a VIP suite with fine art and high-end jewelry.
Ledru said Tiffany’s average price point has doubled since LVMH acquired it in 2021. The brand’s shift toward higher-end jewelry and new “icons” collections based on historical designs has helped it move upmarket.
Its best seller is the “hardware” collection, especially a gold chain-link necklace priced over $19,000. Ledru described the transformation as “pretty drastic,” noting the brand now targets customers who spend more time and money in stores and expect a premium experience.
Bulgari, whose biggest market is traditionally China, hopes for a sales boost during the Year of the Snake, which began with the Lunar New Year. Babin noted the Chinese economy remains “tough,” but government stimulus could rebuild consumer confidence.
He highlighted Bulgari’s “Serpenti Viper” collection, inspired by vipers, as a top seller. “Serpenti is the icon of Bulgari, and this should be the year of Bulgari,” Babin said.
He also noted growing wealth among women worldwide is changing the luxury market. Women are now buying more jewelry for themselves rather than as gifts, reflecting greater gender equality and purchasing power.
On tariffs, LVMH leaders said they are monitoring developments and adapting to duties globally. They believe any U.S. tariff hikes may not be too disruptive because many wealthy American customers travel and shop internationally.
Jean Arnault said, “If clients buy a piece in the U.S. or in Europe, it’s the same for us.”
Overall, LVMH’s watch and jewelry brands are optimistic about 2025, driven by strong U.S. demand and a steady flow of new product launches.