The Watches and Jewelry division of LVMH saw sales fall by 39% in the first half of 2020, significantly under performing the wider group, which registered a 28% decline.
The results to the end of June, show how sales began to be affected in the first quarter, with group turnover down 17% before cratering in Q2 by 38%.
LVMH revenue dropped from €25 billion in the first half of 2019 to €18.4 billion this year.
Profit from recurring operations amounted to €1.7 billion for the first half of 2020 and operating margin stood at 9%.
“LVMH showed exceptional resilience to the serious health crisis the world experienced in the first half of 2020. Our Maisons have shown remarkable agility in implementing measures to adapt their costs and accelerate the growth of online sales. While we have observed strong signs of an upturn in activity since June, we remain very vigilant for the rest of the year,” says Bernard Arnault, chairman and CEO of LVMH.
Watches & Jewelry sales fell from €2.1 billion to €1.3 billion for the six months, and the division tipped into a loss of €17 million.
Analysis accompanying the financial results suggests that Bulgari has taken advantage of the recovery in China in the second quarter.
Watch brands suffered as retail partners stopped buying stock while their stores were closed.
“After a good start to the year, TAG Heuer and Hublot were impacted by the decline in orders from retailers. The new TAG Heuer smartwatch, which was one of the major innovations of the first half, has been a great success,” LVMH says.