LVMH's Jewelry, Watch Sales -2% in 2013

LVMH reported that revenue rose 2.4 percent year on year to $11.3 billion (EUR 8.4 billion) in the fourth quarter that ended on December 31 and full year sales increased 4 percent to $39.4 billion (EUR 29.15 billion). While annual profit from recurring operations improved 2 percent to $8.1 billion (EUR 6 billion), the group's share of net profit was flat in 2013 at $4.6 billion (EUR 3.4 billion), Rapaport reports.
LVMH's watch and jewelry division sales for the full year fell 1.8 percent year on year to $3.8 billion (EUR 2.78 billion), following small declines in each fiscal quarter. During the fourth quarter, which included the Christmas season, jewelry and watch sales slipped 0.7 percent year on year to  $1.1 billion (EUR 797 million), while sales fell  1.9 percent in the third quarter to $914 million (EUR 677 million). The sector's sales dropped 3.8 percent in second quarter to $926 million (EUR 686 million) after a 1 percent decline in the first quarter at $842 million (EUR 624 million). Organic sales during the year, however, increased 4 percent, combining same-store sales at comparable exchange-rates.
Bernard Arnault, the chairman of LVMH, described the retailer's results as excellent "despite exchange rate volatility and slower growth in the European markets.”
Trends from the watch and jewelry boutiques during the year signaled strong margins for directly owned boutiques. The LVMH watch brands continued to invest in innovation and development of industrial capacity, such as the new TAG Heuer movement manufacturing facility. Additionally, the success of Bulgari’s Serpenti line was confirmed and the new high-end jewelry Diva collection achieved excellent results, according to the retailer.