LVMH Watch Brands Hublot, Zenith Expect Sales Rebound in 2021

A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
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LVMH Watch Brands Hublot, Zenith Expect Sales Rebound in 2021

A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)
A watch is displayed at a shop of LVMH's Hublot, as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 25, 2021. (Reuters)

Swiss luxury watchmakers Hublot and Zenith, both part of French group LVMH, expect sales to rebound in 2021, after a difficult 2020 and a challenging start to the new year, their chief executives said on Monday.

Swiss watchmakers’ sales slid last year as stores were affected by pandemic-related closures and as tourism, an important driver of the luxury watch business, collapsed.

Some companies, which have a strong presence in mainland China, have benefited from a rebound in demand, such as Richemont, which returned to growth in the final quarter of 2020.

“For Hublot, we expect 15-20% sales growth this year ... In China, we still have a lot of potential, we expect very strong growth of 30-50% there,” CEO Ricardo Guadalupe told Reuters in a phone interview during LVMH watch week.

Physical watch fairs have been cancelled again in 2021, so that LVMH’s watch brands are showing off their luxury timepieces virtually this week.

TAG Heuer, the group’s biggest watch label, is not taking part, but its new CEO Frederic Arnault said in a video message the brand had been “very resilient” last year.

Hublot’s Guadalupe said sales growth in the final quarter had been better than in the third for LVMH’s watch and jewelry business overall as well as for Hublot. LVMH, the world’s biggest luxury goods group, is due to publish full-year results on Tuesday.

Guadalupe said growth at Hublot had come from mainland China, while Macau had also improved since October. Hong Kong was still difficult, due to the political situation, but Japan and the Middle East were doing well, he said.

Zenith CEO Julien Tornare said the brand’s successful turnaround was interrupted last year by the pandemic, but Japan, China and the United States should fuel growth this year.

Tornare said problems in Hong Kong, formerly the No.1 market for Swiss watches, would not disappear with the end of the pandemic and were a major headache for watchmakers.

Meanwhile, Guadalupe said Western Europe remained difficult due to the lack of tourists. Store closures related to COVID-19 restrictions are currently hitting sales in Switzerland, Germany, the Netherlands and the United Kingdom.

He said the brand was looking to further streamline its distribution network in the coming years, but would open four new stores in second-tier cities in China this year.

A monitoring system helped Hublot to avoid excess stock build-up at retailers, but in some hard-hit areas, such as cruise ships, the brand was ready to take back unsold timepieces, Guadalupe said.

Online sales of Hublot watches, which cost 18,000 euros ($21,864.60) on average, are still small and are expected to reach 2-3% of total sales this year. Zenith, whose watches cost 10,000 Swiss francs on average, sold about 5-6% of its watches online last year.



Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
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Nike to Launch New Women's Fitness Brand with Kim Kardashian's Skims

The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)
The logo of Dow Jones Industrial Average stock market index listed company Nike (NKE) is seen in Los Angeles, California, United States, April 12, 2016. (Reuters)

Nike will launch a new women's activewear brand in the US this spring in partnership with Kim Kardashian-owned shapewear clothing company Skims, as CEO Elliott Hill works to bolster its portfolio to better compete with upstart brands.

Product innovation and a return to focus on its core sports roots have been at the forefront of Hill's mission to revive sales at Nike, which have been lagging strong growth at Hoka and New Balance, Reuters reported.

The company's bid to appeal to women, who made up about 40% of its customers in 2023, was evident in Nike's first Super Bowl ad in nearly three decades, featuring star women athletes including Jordan Chiles, Caitlin Clark, Sha'Carri Richardson, A'ja Wilson and Sabrina Ionescu.

Skims was launched in 2019 and is valued at around $4 billion. It has seen a strong demand for its shapewear.

Nike said on Tuesday the new brand, called NikeSKIMS, would include training apparel, footwear and accessories for women.

The first collection will be launched at some retail locations in the US as well as at NikeSKIMS' website. The brand would launch globally in 2026, expanding into more retail locations, as well as in the wholesale segment.

The brand would sit alongside other names under Nike's kitty, including Converse, Jordan, ACG and Nike SB.

Nike's shares were up 3% on Tuesday.