The watch and jewellery division at LVMH delivered revenues down 1% in the first quarter although organic growth in the division was up 2% year on year.
Revenue from watches and jewellery at LVMH hit €624 million (£534.8m) in the first quarter of 2013, down from €630 million (£540m) in the second quarter of 2012.
LVMH said that the watch and jewellery market had proved tough with regards to independent retailers. In a statement the group said of the quarter "this performance was achieved in a context of prudent buying by multi-brand retailers".
Within the watches division, highlights of the quarter included TAG Heuer’s 50th anniversary of its Carrera line and the new partnership with McLaren which was announced at the Geneva Motor Show. Hublot and Zenith also enjoyed a "good start to the year", according to the group.
Overall the LVMH group delivered a reported 6% increase in revenue in the first quarter of the year, hitting €6.95 billion (£5.95bn). Its selective retailing division delivered the most growth in the quarter, up 16% driven by a strong performance in Asia, followed by wines and spirits, up 6% led by good growth in China and the US.
The luxury goods group said it had registered strong growth in Asia and the US in general, while Europe "demonstrated good resistance despite a challenging economic environment".
The group said: "In an economic environment which remains uncertain in Europe, LVMH will continue to focus its efforts on developing its brands, will maintain a strict control over costs and will target its investments on the quality, the excellence and the innovation of its products and their distribution.
"The group will rely on the talent and the motivation of its teams, the diversification of its businesses and the good geographical balance of its revenues to increase, once again in 2013, its leadership of the global high quality goods market."
