Jewelry and Watch Sales Sparkle for LVMH

LVMH Moët Hennessy Louis Vuitton, the world’s leading high quality products group, said revenue for the first nine months of 2011 rose 15 percent year-over-year to 16.3 billion euros ($22.3 billion). Organic revenue growth was 15 percent after the currency impact was compensated by the June 30 consolidation of Italian luxury jeweler, Bulgari, into the LVMH structure.

The third quarter continued the trend of strong growth evident since the start of the year, the Paris-based conglomerate said. The momentum continued in Asia, Europe and the United States, while Japan returned to growth over the period. In its outlook, the company said it expects the same revenue growth to continue till the end of the year.

The Watches & Jewelry division (which includes the brands TAG Heuer, Zenith and Hublot), while fifth among the company’s six business units in overall income, was the strongest performer for the nine-month period, recording a 76 percent revenue increase (26 percent organic growth) to 1.2 billion euros ($1.7 billion). The third quarter was marked by the public offer for the outstanding minority shares in Bulgari, which the company said, is performing well across all product categories. TAG Heuer enhanced its feminine product offering with a new jewelry extension to its Formula 1 line and has expanded its presence in Asia. Hublot continues the successful roll-out of the Classic Fusion collection. Driven by the excellent progress of its El Primero and Captain ranges, Zenith continues to demonstrate the strong appeal of its high quality chronographs. The other jewelry brands, Chaumet, Fred and De Beers continued their positive momentum through their own store network, the company said.

Results for its other businesses during the nine month-period are as follows:

Revenue for the Wines & Spirits group (which includes Moët & Chandon, Dom Pérignon, and Jas Hennessy & Co.) increased 7 percent (11% organic) to 2.3 billion euros ($3.2 billion), led by champagne and premium alcohol sales.

Fashion & Leather Goods group (which includes Louis Vuitton, Thomas Pink and Marc Jacobs) grew 13 percent (15% organic) to 6.2 billion euros ($8.5 billion).

Perfumes & Cosmetics group (Christian Dior, Guerlain and Parfums Givenchy) saw its sales rise 3 percent (10% organic) to $2.3 billion euros ($3.2 billion)for the period, led by the sustained growth of its flagship product lines.

Selective Retailing group (which includes DFS, Sephora and La Samaritaine) sales increased 18 percent (19% organic) to $4.3 billion ($5.9 billion), benefiting from the expansion of Asian tourism, which was particularly strong in Hong Kong and Macao.

Its businesses listed as “other activities,” recorded a slight loss.

FT Launches Fashion and Luxury Blog

FT Fashion Editor Vanessa Friedman

The UK business publication, Financial Times, has launched a blog that deals with the fashion and luxury industries from a corporate and consumer point of view, as well as the subject of dress among those in public eye.

The blog, “Material World,” is edited by FT fashion editor Vanessa Friedman, a position she’s held since 2003. Other FT reporters and editors also will contribute posts.

The blog started on September 1 and so far has included the style of President Barack Obama and former British Prime Minister Tony Blair, insider perspectives of New York Fashion Week and a scoop about Tom Ford that Friedman learned about while in the doctor’s office.

Saint Laurent Gets a New CEO

©Hedi Slimane

Francesca Bellettini has been named the new CEO of Yves Saint Laurent. She will take over the top spot at the fashion house on September 1, replacing Paul Deneve, who has taken a position in the high tech industry.

Bellettini is currently an executive director at Bottega Veneta. Both Bottega Veneta and Yves Saint Laurent are owned by Kering, formerly known as PPR, which announced the appointment Tuesday. The French holding company specializes in owning brands in the luxury, sports and lifestyle segments of the apparel and accessories market. Yves Saint Laurent designs apparel and accessories that range from read-to-wear clothing to jewelry. While the brand is best-known to the public as Yves Saint Laurent, Kering had officially changed the brand name in 2012 to Saint Laurent.

“Her experience within the group and in the industry, her expertise and her determination persuaded me of her ability to implement Saint Laurent day-to-day strategy,” said François-Henri Pinault, chairman and CEO of Kering.

Bellettini, an Italian national, joined Bottega Veneta in November 2008 as worldwide merchandising director. She was promoted to worldwide merchandising-communications director in November 2010 and has been responsible for implementing strategic direction for the company, while overseeing all aspects of merchandising, visual display and communication.

She previously was the strategic planning director and associate worldwide merchandising director of Gucci. Prior to Gucci, she was operations manager of Helmut Lang, having previously worked at the Prada Group in 2002 as part of the planning & new business development division. After graduating from Bocconi University in Milan, Bellettini started her career in London as an investment banker, working at Goldman Sachs International, Deutsche Morgan Grenfell, and Compass Partners International.

In addition to the appointment of Bellettini, Yves Saint Laurent creative director, Hedi Slimane, will have added responsibilities that include supervising all strategic projects in a plan to transform and reposition the brand.

“Hedi Slimane has a clear creative vision for Saint Laurent,” Pinault said. “He has successfully rejuvenated and repositioned the brand in line with Yves Saint Laurent’s original message in 1966. This reform project was essential to ensure that Saint Laurent is in step with the times, and to secure its success. Today, the brand is one of the world’s most prominent fashion houses and my ambition is that Saint Laurent is able to realize its considerable long term potential for growth.”

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Amazon and eBay to Tap High-End Fashion Markets

Online giants Amazon.com and eBay are both targeting high-end apparel, shoes and accessories retail segments.

The new initiative for Amazon will rival established high-end online fashion sites Yoox and Net-A-Porter, according to a story in the Financial Times (subscription required). It will improve the experience for shoppers with more viewing options for clothing and will offer free returns for clothing items of more than $25, tapping into the success of a similar program from Zappos, the shoe Web site Amazon acquired this past November. The company reportedly said it will be ready to launch the new site by October, in time for the holiday shopping season.

Meanwhile, eBay relaunched its clothing sales under the eBay fashion brand in April, adding videos and comments from fashion stylists and a “find similar items” image-matching feature, the FT reports. It has also launched a “fashion outlet” site in the U.K. and created “storefronts” in the U.S. with retailers including Brooks Brothers and Timberland selling excess and discounted stock directly to buyers.

Here is a link to the story on the Zacks Web site.

The $15 Million Diamond Cocktail Dress

A diamond wholesaler recently unveiled a $15 million custom-designed cocktail dress comprised of 100 3-carat round diamonds.

A total of 85 diamonds were located on the bodice of the “little black dress,” four diamonds on each sleeve and seven adorning the back.

The diamonds were provided by Tov International, a third-generation family owned and operated New York diamond wholesale business that specializes in 3-carat round brilliant diamonds. The dress was designed by Chloe & Reese, a New York based dress designer that specializes in custom cocktail dresses.

The dress was unveiled on April 25 during a fashion show at the American Gem Society 2012 Conclave, the annual tradeshow of AGS, a trade organization that specializes in the development and maintenance of superior gemological skills and knowledge.

Kering Strengthens its Focus On Luxury Jewelry and Watches

Tilda Swinton wearing colorful Pomellato rings. The Italian jeweler is owned by Kering.

French multinational holding company Kering (previously known as PPR) continues its transformation (at least three years in the making) into a luxury and lifestyle conglomerate with the recent announcement that it has reorganized most of its luxury brands into two divisions and appointed executives to lead those groups.

Albert Bensoussan, 55, a former LVMH executive, was named CEO of the “Luxury – Watches and Jewelry” division, which will house the brands Boucheron, Girard-Perregaux, JeanRichard, Pomellato, Dodo and Qeelin.

The last three brands (Italian jewelers Pomellato and Dodo; and Hong Kong based jeweler Qeelin) were purchased by Kering within the past two years and is evidence of its pursuit of luxury jewelry companies.

Meanwhile, Marco Bizzarri, 51, a Kering employee who most recently served as president and CEO of Bottega Veneta, was named CEO of the “Luxury – Couture & Leather Goods” division, which will be made up of Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier and Sergio Rossi.

Bizzarri remains president of Bottega Veneta until a new CEO is appointed.

Gucci will remain under the responsibility of Patrizio di Marco, chairman and CEO, who will remain under Pinault’s supervision.

Both appointments take effect in May. They will both report to François-Henri Pinault, Kering chairman and CEO.

“The new structure reflects the specific character of the businesses of the Group’s different brands, and will provide better responses to their particular needs, adapted to each brand’s stage of development,” Pinault said in the April 24 announcement. “The introduction of this structure is a logical stage in the formation of a more integrated group, to further accelerate the development of our brands while respecting the autonomy and individual identity of each of them.”

Bensoussan, Bizzarri and di Marco are all members of Kering’s executive committee.

Along with the new appointments there will be resignation. Alexis Babeau, managing director of Kering’s luxury division since 2011, said he had successfully fulfilled his mission and wanted to take his career in a new direction. Pinault credited him for the development of luxury brands first at Gucci Group and then at Kering.

“Alexis played a key role in identifying and implementing operational synergies between our brands, while maintaining the creative independence that makes each of them unique,” Pinault said.

In addition, Pinault said he will remain the chairman of the board at Saint Laurent. “Saint Laurent is at a pivotal moment in its history and reform as undisputed reference for Parisian elegance,” Pinault said. “Retaining its chairmanship ensures the preservation of the unique individuality and positioning of this historical French Couture House.”

Kering also has a “Sport & Lifestyle” division with the brands Puma, Volcom, Cobra, Electric and Tretorn.

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AMEX, FT and IHT Luxury Summits

Ed Kelly, president and CEO, American Express Publishing addressing attendees of the 2010 American Express Publishing Luxury Summit.

A handful of publishing companies have been successful at creating conferences that focus on current issues in the luxury industry. These events attract an international audience of professionals who deal with the creation and marketing of luxury products and brands—from jewelry to space travel—and result in unparallel networking opportunities. 

In the past few years, these conferences have changed from a celebration of the expansion of the good life to dealing with the turmoil from events that have unfolded in recent years—from the worldwide economic collapse to the democracy movement in the Middle East to the tragedy in Japan. This has given these conferences an increased importance in today’s worldwide marketplace. Below is quick rundown of three of the more successful luxury summits that will be hosting their events this year.

American Express Publishing Luxury Summit

Since 1999, this event, held exclusively in the U.S., has attracted top marketers from the world’s leading purveyors of luxury goods and services to analyze critical issues and trends, share best practices, and examine the evolving needs of the affluent consumer, as well as the effects of the current economic, social, and political climate on today’s luxury companies.

This year’s summit, being held April 10-12 at Montage Deer Valley, Park City, Utah, will focus on current issues and international news professionals are among the speakers. Christopher Dickey, Newsweek Paris bureau chief and Middle East regional editor, will discuss, “How a Global Youthquake is Turning The World (and Luxury) Upside Down.” Chrystia Freeland, Reuters global editor at large, will speak on the topic, “The Rise of the Global Super Elite.”

Other areas of interest will be the rise of digital technology in the luxury world, emerging economies, design and advertising. And, of course, the editing staffs of American Express Publishing, which produce the magazines Food + Wine, Travel + Leisure, Departures, Executive Travel and Black Ink, will be featured throughout the summit.

For more information or to register, visit the American Express Publishing Luxury Summit Website. 

2010 Financial Times Business of Luxury Summit Black Tie Reception at Paramount Studios in Los Angeles.

FT Business of Luxury Summit

In its seventh year, this summit, hosted by the Financial Times, brings together senior luxury executives, corporate decision makers and financiers from around the world. Held at locations throughout the world, this year’s summit will be held June 5-7 at the Beau-Rivage Palace, Lausanne, Switzerland. More details will be announced in the coming months, however, speakers and contributors who are confirmed include:

* Thierry Andretta, CEO, Lanvin

* Bernd Beetz, CEO, Coty Inc

* Jean-Claude Biver, CEO, Hublot SA

* Lionel Breton, chairman & CEO, Martell Mumm Perrier-Jouėt

* Gian Giacomo Ferraris, chief executive, Gianni Versace SpA

* Bill Glenn, president, Global Merchant Services, American Express

* Isabelle Guichot, president & CEO, Balenciaga

* Peter Kriemler, global president, Akris

* Frederick Lukoff, president & CEO, Stella McCartney

* Philippe Léopold-Metzger, CEO, Piaget SA

* Jim O'Neill, chairman, asset management & former chief economist, Goldman Sachs

* Marc Puig, chairman & CEO, Puig

* Martin Wolf, CBE, chief economics commentator, Financial Times

For more information or to register, visit the FT Business of Luxury Summit Website.

International Herald Tribune's Luxury Business Conference

“Hot Luxury” is the theme of this year’s conference, being held November 10-11 at Hotel Unique, São Paulo, Brazil. Since 2001, the conference has served as a forum for the discussion and exchange of ideas for the fashion and luxury industry. It is hosted each year by Suzy Menkes, IHT's fashion editor. The conference attracts keynote speakers from the commercial and creative sides of the business, and an annual international audience of more than 450 delegates from more than 35 countries.

The program is still being developed. However, the keynote speaker is renowned fashion photographer, Mario Testino.

For more information or to register visit the International Herald Tribune's Luxury Business Conference.

10 New Jewelry Designs from the Centurion Show

8k gold ring with diamond pave is centered with a large emerald cabochon.

It appears that luxury jewelry designers are through experimenting with less expensive materials (due to the economic collapse and high cost of materials) and have returned to producing creations with high-karat gold and platinum as well as big bold gemstones and lots of diamond pavé, if the Centurion Jewelry Show is any indication of what’s to come this year. And I believe it is.

The first major U.S. tradeshow of the year was held Feb. 3 - 5 in Scottsdale, Ariz. The invitation-only event caters to the luxury end of the market. One of the things it provides is the first chance for those in the U.S. to view new designs for the year. I presented an early appetizer of the pieces on display with the Centurion Design Award winners. Now here are 10 more jewelry designers that caught my attention during the show. Enjoy.

Erica Courtney is one of the few designers who can be on trend while maintaining exceptionally high standards, presented an entire collection based on green, including this 18k gold ring is centered with a large emerald cabochon (top photo). The intricate, sculptural-like details of gold are further enhanced with 18k diamond pave.

The Tilley engagement ring by Jeff Cooper Designs features a single row of pave diamonds that tapers toward the center, giving extra emphasis to the center stone. It is available in platinum or 18k gold.

Damiani has come out with a ceramic jewelry line called D.Icon, which includes this ring made of white ceramic with pink gold and diamonds (0.21 cts.).

The Mimi So Phoenix Stackable Band has18k rose gold and leaf work covered in diamonds. It is stackable with other rings in the collection.

Fope Gioielli introduced a flexible cross-over bracelet with elastic wrapping features to the Flex'it Solo line. It is made of 18-carat gold, with or without diamonds.

18k white gold heart shaped hoops with detachable London Blue Topaz drops by Lisa Nik.

Syna Jewels, a new exhibitor, presented a series of highly polished chalcedony drops set with 18k yellow gold from the Mogul collection.

All of the operations of the Frédérique Constant Classics Manufacture Worldtimer is done through the crown, which simplifies setting the time and date, and calibrating the worldtimer. The watch is powered by the FC-718 caliber movement, built in house. The dial is available in a guilloché design or with a silver world map in its center. The watch is also available in steel for $3,450 and rose-gold for $4,150.

The Links of London 8-carat rose gold necklace with a rose gold and black pearl pendant from the Effervescence collection.

18k white gold diamond band in a leaf pattern with yellow gold accents sprinkled with diamonds by Beverley K.

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