LVMH sees watches and jewelry sales rise by “more than” 10% in 2017
Luxury titan LVMH saw sales of watches and jewelry rise by “more than” 10%, according to a senior member of staff. Ricardo Guadalupe, chief executive of the company’s Hublot brand – a Swiss watchmaker founded in 1980 – revealed the good news last week.
This is yet more good news for the luxury sector generally, which has seen its fortunes reverse since credit providers started lending out more in the U.S., and Beijing relaxed its austerity drive. And it’s good news for Swiss watches in particular, which were hit hard by an unfavourable backdrop over the past few years, and show signs of returning to growth.
LVMH’s share price has risen by 28% over the past year
SOURCE: Yahoo Finance
Hublot is one of LVMH’s three flagship watch brands. The other two are Tag Heuer and Zenith. The Swiss watch industry is dominated, however, by another luxury giant, Richemont.
According to Guadalupe, Hublot outperformed over the course of 2017. He told Reuters that: “For Hublot, sales were up 12 percent in 2017. The rise was more than 10 percent for the watch and jewelry business as a whole,” and “This year, we expect Hublot sales to rise 5-6 percent, maybe 10 percent if things go well.”
The recovery in Swiss watches is not dramatic, but it is meaningful. In the first 11 months of 2017, industry exports rose by 2.8% - a welcome change from the contractions seen in previous years. This growth is being driven, largely, by recovery in Mainland China and Hong Kong, the industry’s biggest market.
Dominion holds LVMH and Richemont in its Global Trends Luxury Fund.
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