LVMH's Watches and Jewellery Division Drives Resilient Growth in the Global Luxury Market
LVMH has delivered a resilient first half of 2026, with its Watches and Jewellery division once again demonstrating the enduring strength of luxury jewelry despite a more measured pace across the global luxury sector.
The world’s largest luxury group reported first-half revenue of €33.6 billion, an increase of 2 percent compared with the same period last year, while recurring operating profit remained stable at €8.7 billion. A stronger second quarter, with revenue growth accelerating to 3 percent, suggests confidence is returning to the luxury market as demand stabilizes across key regions.
For the world’s Ultra High Net Worth Individuals, the results reinforce the continued appeal of exceptional jewelry maisons that combine heritage, craftsmanship and timeless desirability.
Luxury Jewelry Continues to Outperform
Among LVMH’s diverse portfolio, the Watches and Jewellery division delivered one of the group’s strongest performances.
Revenue increased from €5.09 billion to €5.23 billion during the first six months of the year, while the division’s operating margin improved from 15 percent to 16 percent. The performance highlights the resilience of luxury jewelry, which continues to attract collectors seeking exceptional craftsmanship, rare gemstones and iconic creations.
Luxury jewelry remains one of the most dynamic sectors within personal luxury goods, supported by long-term demand from affluent collectors and family offices looking for tangible assets that combine emotional significance with enduring value.
Luxury Fashion Brands Shift Toward Long Term Relationships
The structure of the luxury market is changing.
The share of aspirational consumers is expected to decline significantly as luxury fashion brands increasingly prioritize loyal, long-term relationships with established luxury clients.
Similarly, one-time purchases are becoming less central to brand strategy as maisons focus on client retention, private services, bespoke experiences, and personalized engagement.
For Ultra High Net Worth Individuals, this evolution feels natural.
Luxury has always been built upon relationships, trust, and continuity rather than transactional purchasing.
Private appointments, invitation-only events, exclusive collections, and tailored services continue to strengthen these long-term connections.
Tiffany & Co. and Bulgari Lead Performance
LVMH identified Tiffany & Co. and Bulgari as the strongest contributors within the division.
Both maisons continue to strengthen their global presence through exceptional high jewelry collections, exclusive client experiences and continued investment in craftsmanship. Their performance reflects growing demand for heritage brands capable of delivering both innovation and timeless design.
Meanwhile, TAG Heuer, Hublot and Zenith maintained momentum through new watch launches, global marketing activations and major sporting partnerships that continue to reinforce their international visibility.
Confidence Returns to the Luxury Market
Despite ongoing geopolitical uncertainty, LVMH remains optimistic about the second half of the year.
Chairman and Chief Executive Officer Bernard Arnault described the group’s first-half performance as evidence of its resilience and disciplined strategy, expressing confidence in the long-term strength of its maisons and their ability to maintain leadership across the luxury industry.
The gradual acceleration in second-quarter sales suggests luxury demand is becoming increasingly stable as affluent consumers continue to prioritize exceptional products and experiences.
What It Means for the One Percent
For the world’s more than 426,000 Ultra High Net Worth Individuals, collectively controlling over $49 trillion in wealth, luxury jewelry continues to represent one of the most enduring categories within the global luxury market.
Unlike many discretionary purchases, high jewelry combines artistic excellence, rarity and generational value, qualities that continue to resonate with sophisticated collectors seeking lasting investments and meaningful acquisitions.
As maisons such as Tiffany & Co. and Bulgari continue to innovate while preserving their heritage, the category remains exceptionally well positioned for long-term growth.
The Future of Luxury Jewelry
LVMH’s latest results reinforce a broader trend shaping the global luxury industry.
While overall market growth has moderated, luxury jewelry continues to outperform many traditional luxury categories through its unique combination of craftsmanship, exclusivity and cultural significance.
For Ultra High Net Worth Individuals, these maisons offer more than extraordinary creations. They represent enduring symbols of legacy, artistry and timeless value, ensuring that luxury jewelry remains one of the defining pillars of global wealth and refined living.
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