LVMH, Bvlgari Post Lower Watch Sales

By William George Shuster, Senior Editor -- JCK Online, 4/1/2002 2:00:00 AM

Two international luxury goods groups—the Bvlgari Group and LVMH (Moët Hennessy Louis Vuitton)—posted lower watch sales for 2001, despite Group gains.

Bvlgari's net revenues rose 13% in 2001 to $661.6 million, said its preliminary financial report. Sales grew in all regions except the Americas (-17%). Most categories had strong sales gains: accessories (+47%), perfumes (+37%), and jewelry (+26%). Watches, however, dipped 6% for the year and 27% in the fourth quarter.

LVMH says its 2001 sales grew 5%, for a record $10.8 billion. Its watches and jewelry group, however, fell 12% for the year and 20% in the fourth quarter. The division posted annual sales of $476.8 million, $132.7 million of which came in the quarter ending Dec. 31. That was "principally due to the strategic decision to terminate production and sales on behalf of third-party brands outside the Group," says LVMH.

Sales of its own (excluding third-party) brands reached $457.2 million, and "made progress in all regions compared to 2000 except the United States."