American darling Tiffany & Co. is bringing in some serious cash for its French parent.
LVMH reported 9% growth in its watch and jewelry vertical in the latest half of the year compared to the same period last year, driven by sales in the US, Asia, and Japan.
Tiffany was a big reason for the growth, said LVMH CEO Bernard Arnault, France’s richest man.
Arnault said in a Monday earnings call that Tiffany, which it acquired for $15.8 billion in 2020, was growing because of its iconic product lines, the HardWear and Knot collections. LVMH’s finance chief, Cécile Cabanis, added that the HardWear and Knot collections grew by about 75% and 50% in the past six months, respectively.
Tiffany’s bet on high jewelry was also paying off, Arnault said. LVMH announced in January that Tiffany was pivoting away from its iconic silver jewelry and going all in on gold and high jewelry, where it was seeing more demand.
The 77-year-old luxury tycoon said during the earnings call that Tiffany was renovating its retail stores, with about 40% refurbished thus far.
LVMH’s watches and jewelry line, which earned 5.23 billion euros, or $5.94 billion, in the past six months, was also boosted by Bulgari’s strong performance with high jewelry and watches, Arnault said. Its Serpenti, Diva, and B.zero1 lines have been particularly successful, he added.
Monday’s results show a glimmer of hope for the luxury conglomerate, which has had a series of difficult quarters. Its revenue has been in the red since the first half of 2024.
It saw its sales drop after COVID-era aspirational shoppers pulled back on their spending after the pandemic, leading to an industry-wide luxury slump. Economic pressures in China also caused LVMH to lose favor with one of its largest consumer bases.
It saw further challenges from President Donald Trump’s tariffs last year. Arnault embraced dry humor when talking about the long bout of weak financial performance, saying in a January earnings call, “I think we’ll make it through the winter.”
LVMH’s stock price had risen about 1.1% when markets closed on Monday.
