After a year of declines, sales of watches and jewelry at luxury giant LVMH rebounded in the latest quarter and continued to shine into January, according to several of the company’s brand CEOs.
In its earnings call this week, LVMH reported that sales for its watches and jewelry group increased 3%, after falling in the previous quarters. The division outperformed the company’s core fashion and leather goods segment, which was down 1% during the quarter, as well as wine and spirits, which declined 8%.
In interviews during LVMH Watch Week in New York, the CEOs of several of the conglomerate’s watch and jewelry brands said they’re increasingly optimistic about 2025. While China remains slow, they said a rebound in spending by Americans — both in the U.S. and Europe — is driving strong demand for both watches and jewelry.
“I have to say that I’ve been positively surprised by the start of the year,” said Jean-Christophe Babin, CEO of Bulgari, which is owned by LVMH.
Anthony Ledru, the CEO of Tiffany & Co., which LVMH acquired in 2021, said he’s also seeing renewed consumer confidence among the American wealthy after the U.S. presidential election.
“I think it brings clarity and probably a greater consumer confidence,” Ledru said. “We need that feel-good factor to succeed in the luxury world.”
Of course, there are risks to the bright outlook. U.S. tariffs are the big unknown for high-end watches, which are mostly made in Switzerland, as well as for French luxury goods. The Trump administration has threatened across-the-board tariffs in Europe.
Yet for now, watch and jewelry makers are launching a barrage of new products in hopes of a strong 2025. Louis Vuitton’s watch division launched its new “Tambour Taiko Spin Time” collection, which features “jumping cubes” for numbers that were inspired by old airport flap displays. The company’s Gérald Genta line launched the new “Gentissima Oursin Fire Opal,” made from 137 orange and red opal gems, mined from Mexican volcanoes.
Louis Vuitton “Tambour Taiko Spin Time” in Hawk’s Eye.
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Gérald Genta Gentissima Oursin Fire Opal.
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Jean Arnault, director of Louis Vuitton watches, who also oversees the Genta and Daniel Roth brands, said he has a decades-long plan to make Louis Vuitton one of the most respected watchmakers among top collectors — known for high complications and craftsmanship, and commanding high prices.
“Before Louis Vuitton rhymes with watchmaking in the wider world, we’ll probably wait a whole generation until that happens,” he said. “What’s important to me is making sure that they know when Louis Vuitton makes watches, they know they are very high quality, that they have no doubt. We are focusing on high complications and pieces with high price points.”
TAG Heuer, which just announced a partnership with Formula 1 to replace Rolex as the official timekeeper, said it’s already seen a boost in sales since the announcement in October. At LVMH Watch Week, the company launched a new Formula 1 collection, with bright dials and chronograph movements. Antoine Pin, CEO of TAG Heuer, said the sales benefits from the F1 announcement were literally “overnight.”
“My surprise was that any announcement we’re making with F1 is immediately leading to significant reactions,” he said. “And clearly, the beauty of social media is that you can quickly measure the impact. And we’ve seen massive expansion of reaction and very positive reactions. So it was a very good decision.”
On the jewelry side, Tiffany saw a 9% increase in same-store sales in the fourth quarter, LVMH said during its earnings call. Tiffany’s flagship “Landmark” store, on Manhattan’s Fifth Avenue, saw strong sales over the holiday season with long lines from visitors. The newly renovated store, which LVMH spent hundreds of millions to reimagine, now features a popular Blue Box Cafe by Daniel Boulud and a new VIP suite on the 10th floor, offering views of Central Park, fine art, rare Tiffany lamps and high-jewelry pieces priced for six or seven figures.
Tiffany CEO Ledru said the company’s average price point has doubled since LVMH acquired the jewelry maker. By upgrading the company’s retail stores, focusing on high-end jewelry and launching its new “icons” collections, based on historical Tiffany designs, the brand has been able to quickly move up-market.
Its hottest seller is the “hardware” collection, especially its gold chain-link necklace that sells for over $19,000, Ledru said.
“It’s a pretty drastic transformation,” he said. “We went after a client that spends more, spends more time in the store and engages at a higher price point. It’s demanding. It’s a very particular ecosystem. The more you go up, the more you need to have amazing stores, amazing staff, amazing products, amazing events and communication that aligns with all of that.”
Bulgari, whose largest market has traditionally been China, is hoping to see a sales lift during the year of the snake in the Chinese zodiac, which officially began with the Chinese Lunar New Year on Wednesday.
Bulgari CEO Babin said that while the Chinese economy is “tough” right now, there are signs that government stimulus could start rebuilding consumer confidence this year.
He said Bulgari’s popular “Serpenti Viper” collections, modeled after viper snakes, are top-sellers.
“Serpenti is the icon of Bulgari, and this is the year of the snake, so this should be the year of Bulgari,” he said.
The rising wealth held by women around the world, from higher earnings, entrepreneurship and inheritances, is also reshaping the company’s client base. While a large share of sales used to be to men buying jewelry as gifts, now women are buying for themselves.
“Today you have a real gender equality in most countries,” Babin said. “Women’s purchasing power is very similar to men’s purchasing power, which is a revolution in luxury.”
Tiffany “Bird on a flying Tourbillon
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On the subject of tariffs, LVMH CEOs said they have to wait and see what policies are announced before making plans. Yet they said they work with tariffs and duties in countries around the world, so a hike in the U.S. may not be too disruptive.
What’s more, Americans are already traveling to Europe to buy luxury goods, driven in part by the strong dollar. If tariffs become high enough in the U.S., wealthy Americans might start choosing to buy their Bulgari bracelets or Louis Vuitton watches in Europe.
“A lot of our clients travel around the world,” Jean Arnault said. “So if they buy a piece in the U.S. or they buy a piece in Europe, it’s the same for us.”
