Factbox: LVMH’s Jewellery and Watches Enterprise

(Reuters) – French luxury goods group LVMH shut its $15.8 billion acquisition of U.S. jeweller Tiffany on Thursday, setting up some of its senior executives to run the organization.

The deal, 1st declared more than a year back, will enable LVMH, proprietor of models this sort of as Louis Vuitton and Bulgari, to extend in jewelry, which has been one particular of the swiftest-growing parts of the luxurious goods market.

Listed here are some information about LVMH’s jewelry and watches division based on yearly experiences and the firm’s website:

Established up in 1999, watches and jewelry is the newest of LVMH’s 6 enterprise divisions.

A milestone for the jewellery organization was its 2011 acquisition of Italy’s Bulgari for 3.7 billion euros, at the time the greatest luxurious items deal in a ten years.

Other models in the division comprise Chaumet, TAG Heuer, Fred, Hublot and Zenith.

With 4.4 billion euros (5.4 billion) in product sales, and earnings of 736 million euros in 2019, the division accounted for just 8% of profits and 6% of earnings from recurring operations.

The business enterprise is comparatively little compared with LVMH’s manner and leather products division, house to Christian Dior, Givenchy and other makes such as Fendi and Louis Vuitton.

But it has expanded promptly. In 2010, prior to the Bulgari offer, gross sales from jewellery and watches were being 985 million euros, 5% of the team overall, and gains ended up 128 million euros, just 3% of the full.

Tiffany, started in New York in 1837, described internet profits of $4.4 billion and internet earnings of $541 million in the yr to the conclusion of January, 2020. ($1 = .8161 euros)

(Reporting by Josephine Mason and Keith WeirEditing by Elaine Hardcastle)