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  1. calibre11user

    calibre11user Jan 31, 2021

    On January 26, 2021, LVMH, the parent company of TAG Heuer, reported its earnings for the fiscal year ending Dec. 31, 2020. During a pandemic-laden 2020, fourth quarter business picked up due to a sales increase in Asia.

    For the fiscal year, LVMH revenue dropped (17%) year-over-year, while profit declined (28%) year-over-year. Optimists will point out that in H1 2020, revenue dropped (28%) y/y, while in H2, revenue dropped only (5%) y/y.

    LVMH's best-performing division, "Fashion and Leather Goods", saw a y/y profit drop of (2%), while its worst-performing division, "Perfumes and Cosmetics", had a y/y profit drop of (88%).

    In the "Watches and Jewelry" division, which contains TAG Heuer, Bulgari, and others, 2020 y/y revenue dropped (24%) while y/y profit dropped (59%).

    Store closures and the suspension of international travel due to the global public health crisis affected the Watches and Jewelry businesses. However, the rebound in China in the second half helped limit the full-year revenue decline to 23% at constant consolidation scope and exchange rates. In this context, the Maisons took measures to reduce costs and preserve cash while doing their best to spur demand and develop alternative distribution methods such as digital channels and direct sales. Watch Week – an event held by Bvlgari, Hublot, TAG Heuer and Zenith in Dubai in January – was an excellent opportunity to present the Maisons’ new collections to retailers and the media.

    LVMH's financial documents called out various watch organizations.

    Heavily affected by the market downturn starting in mid-March, Bvlgari quickly capitalized on the recovery in China starting in the second quarter. A number of digital initiatives were developed. The Maison helped combat the pandemic by donating hand sanitizer to healthcare facilities in Italy, Switzerland and the United Kingdom, and launched the Bvlgari Virus Free Fund to support Covid-19 vaccine research being done by leading teams at Oxford University, Rockefeller University and Lazzaro Spallanzani Hospital. New designs continued to appear at a rapid pace, with the B.Zero1 “Rock” collection adding rings, bracelets, pendants and earrings, reflecting the brand’s bold creativity along with other iconic jewelry models launched in the Diva, Fiorever and Bvlgari Bvlgari series. High jewelry featured the presentation of the Jannah Flower collection in Abu Dhabi and the bold and colorful new Barocko line, reflecting the precious link between the Maison, the city of Rome and the Baroque style. Sales held in Beijing and Shanghai confirmed the design’s major success. The Serpenti Seduttori Tourbillon, Octo Répétition Minutes and the new Bvlgari Aluminium watch designs sparked a keen interest. As a leading patron, the Maison contributed to the restoration of 96 Greek and Roman marble statues belonging to the Fondazione Torlonia. A new global marketing campaign was launched, featuring Zendaya, Naomi Watts, Kris Wu and Lily Aldridge.

    TAG Heuer showed good resilience thanks to its solid positioning with local customer bases in its main markets. In March, the third generation of its smartwatch was launched in New York. Its performance, innovative materials, wide range of features and elegance ensured this product’s success, rounded out by a Golf version that was well received by connoisseurs. The Maison’s flagship lines were enhanced with the new Carrera chronographs, additions to the Aquaracer and Formula 1 collections, and new versions in the iconic Monaco line. To celebrate its 160th anniversary, the Maison offered a number of special limited editions in the Carrera collection. The end-of-year sale of a 1969 Heuer Monaco model worn by Steve McQueen fetched the highest auction price ever recorded by the Maison. The network of directly operated stores was expanded in parallel with its presence in digital channels, which is being actively developed. TAG Heuer’s team of brand ambassadors and its sports contracts have helped reinforce brand awareness among target customers and strengthen its social media presence. 2020 saw TAG Heuer and Porsche join forces in a number of collaborations that will be revealed over the course of 2021. Together with Hublot and Zenith, TAG Heuer showed its support in the fight against the pandemic by donating protective face masks to Swiss hospitals.

    Hublot’s new additions included the Big Bang Integral, for the first time featuring an integrated metal bracelet, and the Spirit of Big Bang Meca-10, whose manufacture movement offering a 10-day power reserve was adapted to the “barrel” design. The marketing launch of the Big Bang e digital model was accompanied by the addition of an e-commerce function to the website. Innovative new models such as the Big Bang Millennial Pink and the Big Bang MP-11 Red Magic reflected the Maison’s dynamism. After several previous collaborations on different models, Hublot and Berluti pooled their talent for the first time on the iconic Big Bang Unico chronograph. In Japan, which is now the brand’s numberone market, a store was opened in the Hublot Tower in Tokyo’s Ginza district. To celebrate Hublot’s 40th anniversary, the new #timetoreflect campaign was launched, chronicling the origins of its iconic collections, all its ambassadors who have become loyal partners, and the Maison’s high-level partnerships in the realms of soccer, automobiles and golf with current World Number 1 Dustin Johnson. For the 2020/2021 season, Hublot became the official timekeeper for the English Premier League, the most popular soccer league in the world.

    Zenith launched its Time To Reach Your Star marketing campaign and a new website offering online sales. The Maison enriched its collections with the Defy Midnight women’s model, as well as the new Elite and the Chronomaster Revival, which celebrates its long tradition of watchmaking. A new store was opened in Tokyo’s Ginza district.
  2. Jim Dollares

    Jim Dollares Feb 1, 2021

    Thanks for sharing, very interesting to read
  3. calibre11user

    calibre11user Aug 15, 2021

    LVMH reported its first half 2021 earnings on July 26, 2021. Good news for LVMH: earnings were up 56% year-over-year, which was to be expected now that Covid Part 1 is under control.

    In its Watches and Jewelry group, organic revenue growth was 71% year-over-year. When adding in the integration of Tiffany in the first half of 2021, revenue went up 310% year-over-year.

    The addition of Tiffany will bring in a lot of money for Watches and Jewelry. Tiffany is known primarily for its jewelry, which strengthens the group as a whole.

    Statements from LVMH:

    The Watches and Jewelry business group saw organic revenue growth of 71% with respect to the first half of 2020, which had been hard hit by the pandemic, and of 5% compared with 2019. Including Tiffany, growth was much stronger, showing the transformative contribution of this iconic brand. The Maisons were buoyed by the gradual recovery in their markets, primarily China and the United States, and the use of distribution methods well-suited to the public health context: direct sales and digital channels. New watch designs were unveiled at several of the profession’s major events – LVMH Watch Week, held in an innovative format combining remote meetings and individual inperson encounters, and the Watches and Wonders Geneva digital trade fair. In April, LVMH announced its participation in the launch of a sustainable platform for gemstones and jewelry.

    TAG Heuer marked the start of a major partnership with Porsche with the launch of the Carrera Porsche chronograph. In addition to the introduction of highly successful limited editions including the Green Dial Carrera and the Monaco Titan, a new Aquaracer collection was launched in April. Naomi Osaka and Tommy Fleetwood joined the team of TAG Heuer ambassadors. The Maison opened its first store on the West Coast of the United States.
    thingziliketoo and Jim Dollares like this.
  4. Calibre11

    Calibre11 Editor of Staff Member Aug 16, 2021

    Thanks for posting. Anecdotally, while prices in Australia continue to rise, I understand that demand is still very strong- limited editions selling out in days. I'd love to see a breakdown of sales by model (not that it would ever be provided), but suspect that Carrera, Aquaracer and F1 are the models doing the volume work, with Monaco, Autavia and Link the niche models.

    The special editions are cool and quite rightly get a lot of focus, but if we assume that TAG Heuer makes 600,000 watches a year and that total LE volume across all models is less than 6000 pieces, then we're talking 1% of total volume. These watches get 50% or more of the attention here and on social channels, but are irrelevant in terms of's the core collection that drives the numbers.
  5. kappa_md

    kappa_md Aug 17, 2021

    Rightfully said :thumbsup: Same as cars, the sporty cars get the hype and attention in social media but the less sporty, point A to B econo cars really drives up the volumes and sales. Let’s all be thankful to the Formula1 and Aquaracers ;)
    Anthony.R and thingziliketoo like this.