Bulgari 3Q Sales Up 15%, Jewelry Sales Up 14%, Watch Sales Down 11%

Italian luxury jeweler Bulgari SpA said Thursday that third quarter sales increased 15 percent year-over-year to 267.9 million euros ($366.7 million). At constant exchange rates (excluding currency fluctuations and other conditions) sales rose 5 percent for the period, ended Sept. 30.


Net profit for the period increased 138 percent year-over-year to 16.6 million euros ($22.7 million) for the Rome-based company.


Third-quarter jewelry sales rose 13.7 percent year-over-year (24.2% at constant exchange rates) due to the excellent sales performance of its B.zero1 line and the Serpenti collection. Watch sales fell 10.9 percent (down 1.8 percent at constant exchange rates). However, the company said it was not a fair comparison since delivery of new products this year began in September and continued in the three subsequent months, while last year the new launches were available starting in the second quarter. In October, watch sales grew by 6 percent. The company said that the women’s Serpenti watch collection had an “excellent reaction.” The steel version was available in stores in September, followed by the gold version at the end of October. 


The company also said October wholesale sales were greater than what was recorded in directly owned stores, which confirms the recovery of this distribution channel after last year's massive de-stocking. The company noted that the new Bulgari Roth and Genta models unveiled this year in Basel were “remarkably well-received by customers in directly owned stores.”


Perfume sales fell 4.1 percent for the period. (3.5% at constant exchange rates) but began to rise again in October, recording an increase of 5 percent. Accessories sales increased 35.3 percent (54.8 percent at constant exchange rates).


Sales in Europe for the third quarter rose 11 percent year-over-year, with sales in Italy up 24.4 percent. Sales in America fell 7.4 percent. The sales trend in America, however, adjusted to take into account the normal volatility of high-end jewelry, recorded a growth of 6.4 percent. In Asia, Japan sales show continued weakness, down 1.1 percent, while the rest of Asia grew 15.4 percent for the period. In China, sales grew 24.3 percent for the period. Sales in the Middle East and other areas fell 1.5 percent. However, this is an improvement compared to second quarter sales decline of 10.8 percent.


“I am satisfied with the third quarter results—particularly with the excellent performance of jewelry and accessories and the notable improvement in profitability—which are in line with our plans and clearly show that the company is continuing to improve, both in terms of product and image and in terms of investment control, indebtedness, inventory and costs,” said Francesco Trapani, Bulgari Group CEO.

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Jewelry and Watch Sales Drive Global Luxury Consumption

Double-digit growth in jewelry and watch sales, strong demand in China and Latin America, and resurging U.S. and European markets have all contributed to what is expected to be a growth of 13 percent in worldwide luxury consumption in 2011, according to a recently released report.

Consulting firm, Bain & Company, which created the report, revised its overall 2011 growth projections from the 8 percent growth in luxury consumption it predicted in May.

Jewelry and watch sales are expected to grow by 18 percent year-over-year in 2011, driven by self-purchasing women in emerging markets, according to the report. Accessories sales are expected to increase by 13 percent and apparel by 8 percent for the year.

The annual study was done for Altagamma, a trade organization that represents the largest luxury goods companies in Italy. The organization released the report in Milan on Monday.

Luxury sales growth in the Americas for 2011 is expected to be 8 percent, led by 20-percent growth in Brazil. Europe is expected to show a 7 percent growth rate for the year. Asia again is the engine that is driving the luxury economy. 2011 sales are expected to grow 25 percent, year-over-year, “with no sign of slow down,” according to the report. “China remains the champion of the region,” with an expected 35 percent rate of growth in 2011, equaling the prior year’s consumption growth. “Chinese customers already account for more than 20 percent of total worldwide luxury consumption,” according to the report.

In a separate report by Bain for Altagamma, also released Monday, it predicts that the growth of the luxury market will decline, but sales will still be strong in many luxury goods categories and geographical regions.

The jewelry, watches, pens and lighter category is expected to grow by 10 percent for 2012—the same rate of the growth is projected for leather goods, shoes and accessories. Apparel is expected to rise by 6.5 percent; followed by fragrances and cosmetics (4.5%); and tableware (2%).

The strongest geographical region for luxury goods and services will again be Asia, which is expected to grow by 16 percent, and Latin America, with 10 percent growth predicted. Expected growth in luxury sales for other regions is as follows: Middle East (8.75%), North America (6%), Europe (3.75%), and Japan (1.75%).

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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.

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Jewelry and Watch Brands Digital Media Efforts get Failing Grades

Brands held by public companies have a sigificant advantage online, arguably as a result of the emphasis placed on innovation, L2 says. Public comapnies not affilated with a larger organization demonstrated the biggest Digital IQ gains.

The world has largely turned to digital mediums for their consumer information, to purchase products and to share their thoughts about these products and brands with others. Most industries have learned how to harness the power of the Internet, social media and wireless mediums to build their brand image and increase sales. But according to one study, the luxury jewelry and watch industries are lagging far behind nearly all others in using these digital platforms to gain a presence in an area where consumers continue to turn.

Nearly two-third of the jewelry and watch brands surveyed were classified as “Challenged” or “Feeble,” based on the findings of the Digital IQ Index: Watches & Jewelry. Only two brands, Tiffany & Co. and Swarovski, achieved “Genius” and “Gifted” classifications, (respectively).

“Gray market concerns, counterfeit fears, limited pricing transparency, and retailer conflict all present obstacles for organizations in this category to build and sell their brands online,” the survey by L2, a membership-based consultancy that bills itself as a “think tank for digital innovation.” “However, with 67 percent of consumers in the EU and half of those in the U.S. indicating that they research luxury goods online before making a purchase, do watches and jewelry brands really have a choice?”

The top ten brands in the study are:

1. Tiffany & Co.

2. Swarovski

3. Jaeger-LeCoultre

4. David Yurman

5. Cartier

6. Omega

7. TAG Heuer

8. Longines

9. Montblanc (tied)

9. Pandora (tied)

  

Other key findings in the study of 35 jewelry and watch brands:

* Just 29 percent of brands in the Index boast e-commerce capabilities. In a category where third-party distribution is not going away anytime soon, the missed opportunity online to drive customers to offline retail is even more disappointing.

* All but three brands in the Index maintain a presence on Facebook, with communities averaging more than 200,000 fans. Mobile site adoption is up from just seven percent in 2010 to 39 percent this year. In addition, brands are beginning to abandon flash-heavy sites that are difficult to navigate in favor of more streamlined experiences that are more searchable, shareable and product-centric.

* With a YouTube channel launch and updates to its iPad, Cartier is one of this year’s biggest winners; however, the brand still only notches an Average IQ classification. The biggest disappointment is industry heavyweight Rolex, which has fallen from Gifted in 2009 to Feeble this year. Iconic brands are falling behind.

* Less than half of brands included in the study are purchasing their own brand keywords, and thus fail to appear in the top-three paid ads of their search pages. Instead, e-tailers, flash-sale sites, and discounters are seizing this valuable search engine real estate. Google is another “door to the store.” By not addressing paid ads, brands are essentially displaying discounted merchandise in the windows of their largest retail locations.

“The Watches & Jewelry industry is running out of time online,” says Scott Galloway, L2 founder. “Although these brands are beginning to invest in social media and mobile, transaction-orientation and digital marketing competence such as search, email, and retargeting lag other industries.”

For the survey, L2 used a four-tier ranking methodology: Website functionality, content and brand translation accounts for 35 percent; digital marketing, 25 percent; social media, 25 percent; and mobile, 15 percent.

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Swiss Watch Exports Surpass $21 Million in 2011

Photo credit: Ulysse Nardin

Swiss watch exports grew by 19.2 percent in 2011 to 19.3 billion francs ($21.1 billion), according to the Federation of the Swiss Watch Industry. With the exception of 2010, which followed a major downturn, it is the strongest growth in the industry for the past 20 years.

Each month in 2011 had double-digit growth, year-over-year, except for June, which posted a 9.2 percent increase. The steepest increases (above 30 percent) were reported in April and May. However, the final three months were the biggest in history, the association said.

The association went on to say that it was “penalized” by the strength of the Swiss franc, which placed a strain on margins and selling prices. However the sector drew strength from steady demand and a greater presence worldwide, particularly on high-potential markets less affected by exchange rate fluctuations.

Nearly all the main markets of the Swiss watch industry showed double-digit increases in 2011, absorbing more than 20 percent of Swiss watch exports by value. Hong Kong, the industry’s largest market grew by more than 28 percent. The United States, the second largest market, increased by 18.4 percent, which the association said “confirmed its gradual recovery.” China moved up one place in the ranking, thanks to the biggest increase among the main markets (48.7 percent). European markets all registered below-average performances. While France, Germany and the United Kingdom recorded two-digit growth, Italy and Spain failed to match this level. Singapore also moved up one place, following the same trend as Hong Kong. Japan offered concrete signs of recovery, but from a particularly low base.

The association said that 2012 will continue to see robust growth for the Swiss watch industry based on the “appeal of its high-quality products, growth potential in important markets and investments made by watchmaking firms to ensure their development offer grounds for confidence in the future.”

Wristwatches accounted for the major share of exports, generating 94 percent of total value. The value of timepieces rose by 19.3 percent, year-over-year, to 18.1 billion francs. Nearly 30 million watches left Switzerland (up 13.8 percent), the highest level since 1999 and well above the average figure of 25 million units over the past ten years.

More than half of all watches exported were manufactured from steel. This material showed a positive trend (up 12.8 percent) to exceed 15 million timepieces, on a par with their value, which increased by 13.9 percent. The category of other materials, which includes all non-metallic finishes, saw volumes rise to nearly 8 million units (up 18.8 percent). Among the important materials, the category of other metals, mainly aluminum, registered more than 4 million units (up 8.1 percent).

In value terms, gold watches recorded the highest increase (26.5 percent), linked to an upturn in volumes of 24.2 percent. Bimetallic timepieces were not far behind with an increase of 24.7 percent.

All price segments saw robust growth in 2011, denoting interest among consumers for the entire range of Swiss watches. Timepieces costing less than 200 francs (export price) greatly influenced volumes with an increase of 2.2 million units (up 11.7%). Between 200 and 500 francs, growth was close to 20 percent, both in value and volume terms. The 500-3,000 francs range saw its value increase by 14.9 percent. Watches costing more than 3,000 francs recorded the highest rate of growth in value terms at 21.8 percent.

Other products exported by Swiss watchmaking firms, mainly components, also experienced a sharp upturn in value (18.1 percent to 1.2 billion francs).

The top 15 markets for the Swiss watch industry (total value in million francs and percentage variation by comparison with 2010):

    1.    Hong Kong    4,085.9    +28.3%
    2.    USA    1,984.6    +18.4%
    3.    China    1,636.3    +48.7%
    4.    France    1,296.4    +10.9%
    5.    Singapore    1,146.4    +27.5%
    6.    Italy    1,011.8    +9.5%
    7.    Japan    909.2    +12.6%
    8.    Germany    899.2    +17.0%
    9.    United Arab Emirates    682.9    +17.9%
    10.    United Kingdom    659.0    +10.4%
    11.    South Korea    394.5    +29.2%
    12.    Taiwan    366.9    +18.8%
    13.    Spain    355.5    +3.4%
    14.    Saudi Arabia    286.0    +11.6%
    15.    Thailand    278.6    +35.1%

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Bulgari Boosts LVMH Jewelry and Watch Sales

LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, reported that jewelry and watch sales in 2011 grew by 98 percent, year-over-year, due to the acquisition of Bulagri and a 41 percent increase on a comparable structure basis.

“The agreement with the Bulgari family was one of the key moments of the year,” said Bernard Arnault, LVMH chairman and CEO.

Organic growth (which doesn’t include the Bulgari acquisition, the structural changes or currency fluctuations) totaled a more realistic but still extremely strong 23 percent increase for the period. In fact, in terms of percentage, it was still the best performer for the Paris-based luxury conglomerate.

Jewelry and watch sales for the year totaled 1.95 billion euros ($2.56 billion) driven by strong demand across all geographical regions and product lines.

TAG Heuer successfully launched two products entirely developed and manufactured by its own workshop: the Mikrograph 100 and the Mikrotimer Flying 1000, LVMH said. Hublot continued its innovations with the launch of Masterpieces, the new watch collection of Grandes Complications, and extended its store network. Zenith benefited from the renewal of its emblematic lines. Bulgari reported “excellent” results, the company said. Jewelry brands Chaumet, De Beers and Fred, continued to develop their star collections.

The jewelry and watch division was among all categories of products that led to a successful year for LVMH, which owns luxury brands in fashion and leather goods, wine and spirits, perfumes and cosmetics, and Internet retailing. Louis Vuitton, in particular recorded double-digit revenue growth during the year.

LVMH reported a 16 percent increase in total revenue reaching 23.66 billion euros ($31.07 billion) in 2011. Profit from recurring operations increased by 22 percent to 5.26 billion euros ($7 billion), “a performance which is even more remarkable when compared to the strong growth recorded in 2010,” the company said.

In its outlook, the company said it expects an “excellent” 2012.

“After an exceptional 2011, and despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2012.”

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An Up Close View of Hublot's $5 Million Watch

Swiss luxury watch brand Hublot unveiled a diamond-covered $5 million timepiece Wednesday at Baselworld—the world’s largest and most important watch and jewelry fair, in Basel, Switzerland. The company released professionally photographed images of the timepiece Friday.

The watch is covered with 1,282 diamonds, including six square stones that weigh more than three carats each, according to media reports. Jean-Claude Biver, Hublot president, said it will be difficult to make a more expensive timepiece because of the size limitations on the surface of a watch.

The company said in a statement that “a completely different approach was used for its creation.” Normally, the design and technical characteristics of a haute joaillerie piece are created to match the gemstones that were selected. For the making of this timepiece, the diamond cutters started with a design and then found the diamonds that best matched the construction of the case, dial and bracelet.

“Cutters and setters then employed all of their expertise to resize them to ensure a perfect fit,” Hublot said.

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Over 800 Diamonds on this Girard-Perregaux Ladies Watch

Luxury Swiss watch brand Girard-Perregaux unveiled a sparkling 38 mm ladies jewelry timepiece that combines robust mechanics, manufactured in-house, with a sparkling exterior paved with 807 diamonds. It is the latest offering from the La Chaux-de-Fonds-based company's 1966 collection.

The timepiece is available in white or pink gold. The gem-set bezel and slightly curved dial are entirely covered with “brilliant”-cut precious stones. The diamonds are arranged in concentric fashion. The “leaf”-type hour and minute hands and four applied hour markers lend elegance to the sparkle of the diamond-pavé dial.

The alligator-skin strap closes with a gem-set ardillon buckle. The Girard-Perregaux 3300-0066 mechanical movement with automatic winding is equipped with a power reserve of more than 46 hours. Visible through the sapphire-crystal case back, its gold oscillating weight is engraved with circular Côtes de Genève decoration.

The 1966 collection (introduced in 2006) pays homage to a prolific era in terms of creativity, technical expertise and performance of Girard-Perregaux—a period when the watch brand received several awards. The 1966 line specializes in manufactured movements with automatic winding in ultra-thin cases produced entirely in Girard-Perregaux workshops.

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Girard-Perregaux Gives Desmond Tutu 1966 Collection Watch

Nobel Peace Laureate Archbishop Desmond Tutu was in Los Angeles Thursday for a public conversation with author Robert V. Taylor titled, “How to be Happy, Change the World and Embrace a New Way to be Human.”

More than 500 guests attended the event at the Los Angeles County Museum of Art’s Bing Auditorium, which was followed by a private reception.

Also in attendance as an event sponsor and supporter of the Desmond Tutu Peace Foundation was Girard-Perregaux. The luxury Swiss watch brand presented Archbishop Tutu with an engraved 1966 collection watch in honor of his philanthropic accomplishments around the world.

The Desmond Tutu Peace Foundation helps people and societies create cultures of peace by developing programs that focus on young people through the use of new media and traditional methods.

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Hublot Creates Watch For Usain Bolt

Usain “Lightning” Bolt, the world's fastest man, has a Swiss watch named in honor of him and featuring his image. Hublot, for whom he is an ambassador, has developed a model in close consultation with the three-time Olympic champion. The timepiece is aptly named the King Power Usain Bolt.

“It's perfectly natural to be associated with the fastest man, not just on the planet, but the fastest since the Big Bang,” said Jean-Claude Biver, Hublot chairman.

The 25-year-old Jamaican sprinter prepares to defend his titles and world records in the 100, 200 and 4-x-100 meter races at the London Olympics (July 27 - August 12). 

Bolt’s silhouette pose in an anthracite grey on a black background is located at 9 o'clock in the center of the movement's small seconds counter. The chronograph movement features a central 60-second hand and a 30-minute counter at 3 o'clock. A 12-hour chronograph counter sits at 6 o'clock and is decorated with a touch of green in a nod to the colors on the Jamaican flag. A date window at 4:30 completes the design.

The 48 mm-diameter watch, in micro-blasted ceramic, is predominantly black, with gold—Bolt's personal color and that of his lucky running shoes. The strap is made from exactly the same gold-colored synthetic leather as his shoes. This is stitched onto Hublot’s signature black rubber strap.

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Timepieces From Swiss Watch at JCK

The Girard-Perregaux ww.tc Dark Night

At the recently held Swiss Watch at JCK tradeshow in Las Vegas, luxury watch brands and North American buyers were out in force. It is one of several jewelry industry tradeshows being held at the time so I only caught a glimpse of what was happening but it was quite an impressive look. What follows is a short list of luxury timepieces that got my attention at the show.

The ww.tc Dark Night, a new “dark” version of the Girard-Perregaux world-timer, released at JCK (top picture), features a 43 mm black ceramic case with a tinted sapphire case back that discloses the movement. The strength and lightweight of the ceramic structure is enhanced by an internal titanium container. Rubber coated crowns, push buttons and a black rubber strap supplement its sporty characteristics. The timepiece uses a Girard-Perregaux GP03387 self-winding movement, designed specifically for this model. It displays the time in 24 time zones with day and night indicator, date and fly-back chronograph. Exclusive to the U.S. market, this watch is limited to 25 units.

One of the pieces being showcased in North America by Carl F. Bucherer was the Manero ChronoPerpetual (above), which features a perpetual calendar with correction-free indication of the date, day of the week, month and moon phase. The mechanism recognizes the different lengths of the months and knows when the next leap year is imminent, and is thus able to counter the arbitrary features of the Gregorian calendar. The watch has a limited run of 100 units.

Frederique Constant introduced the new Classics Manufacture (above), based on the second generation of the Maxime movement, caliber FC-710, and features an added center seconds hand. The silver dial has a central “guilloché” decoration. The brand, which prides itself on its “accessible luxury” philosophy, is offering this product with a starting price of 1,750 euros (USD $2,144) in stainless steel. The watch is also available with a rose gold plated case for 1,950 (USD $2,390).

For the ladies, Girard-Perregaux introduced the latest model from its Cat’s Eye collection (above). This jewelry watch is draped in 150 emerald-cut precious stones The dial, adorned with a delicate “Clous de Paris” hobnail motif, includes 102 emerald-cut diamonds. The “Clou de Paris” hobnail motif consists of holding several stones with a single “clou” or pin, meaning that the diamond cutter must cut and calibrate the stones one by one. A taupe-colored satin strap enhances the sparkle of the stones. An ardillon buckle set with 13 baguette-cut diamonds encircles the wrist. The hand-engraved case back opens onto the caliber GP033R0 self-winding movement.

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Swatch Group Underscores Strength of the Swiss Watch Industry

Swatch Group, the world’s largest watch company, said Tuesday that its watch and jewelry sales for the first half of 2012 grew 16.7 percent to 3.4 billion Swiss francs ($3.42 billion), year-over-year. The company owns 19 watch and jewelry brands in all market segments, including Swatch, Breguet and Longines.

The results by Swiss company underscores the strength and resiliency of the Swiss watch industry despite the economic problems facing much of the world. Last week, the Federation of the Swiss Watch Industry reported that watch sales for the first half of the year increased by 16.9 percent to 9.5 billion francs ($9.55 billion).

Swatch Group—which also produces movements, hands, crowns, cases, screws, pallets, escapements, electronic circuits, batteries, ceramics and sapphire for its own products and its competitors—saw its gross sales increase 14.4 percent to 3.84 billion francs ($3.86 billion), surpassing the record 2011 half-year figure.

Operating profit for the first half of the year increased by 19.4 percent to 903 million Swiss francs ($908.6 million). Net income increased 25 percent to 724 million francs, year-over-year ($728.4 million).

The Biel/Bienne-based company, in its outlook, expects “dynamic growth in all segments and regions, notably also outside Asia,” for the second half of the year.

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Jaeger-LeCoultre Creates Raffles Hotel Anniversary Reverso Watch

Swiss luxury watch brand, Jaeger-LeCoultre, has created two editions of its iconic Reverso timepiece for Raffles Hotel Singapore, to honor the establishment’s 125th anniversary.

The double-sided watch can be turned over and be worn like a jewel with a personalized engraving. To mark Raffle Singapore’s 125th anniversary, Jaeger-LeCoultre created an exclusive engraving for the hotel that reads: “Raffles Hotel 1887-2012 Singapore.” The engraving is available on the men’s Reverso Grande Taille and the ladies’ Reverso Lady Ultra Thin.

Pierre Jochem, general manager of Raffles International, noted that the watch brand, which is 180 years old, shares a commitment with the hotel to heritage and innovation. “Timelessness is about moving with the times and adapting to the world around us—but never forgetting out heritage—which is priceless.”

Named after Stamford Raffles, founder of Singapore, Raffles started out as a 10-room bungalow and grew to become the landmark of the city-state, known throughout the world for attracting tycoons, rouges, adventurers and movie stars. Well known authors and journalists—including Rudyard Kipling, Somerset Maugham and Noel Coward—wrote about the hotel’s Long Bar, Palm Court and Billiard Room, spreading its legend and acclaim throughout the world.

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Breguet Celebrates the First Watch With Unveiling of the Reine de Naples Watch and Jewelry Collection

Reine de Naples ladies timepiece

Abraham-Louis Breguet is said to have created and delivered the first wristwatch, for Caroline Murat, Queen of Naples on October 5, 1812. To pay tribute to this historical piece and its creator, the Swiss luxury watch brand that bears the creator’s name went off to Naples for a celebration commemorating the 200th anniversary of the event.

The Breguet celebration held on Oct. 5 and 6 on the Gulf of Naples included a tour of Reggia Di Capodimonte, which was the home to Caroline Murat, who occupied the throne of Naples until 1815 and a gala and an historical exhibition, “Reine de Naples,” on the Isle of Capri.

The Swiss luxury watch brand also unveiled the 10th anniversary of its “Reine de Naples” ladies watch and jewelry collection. Launched in 2002, this collection is a tribute to the first wristwatch, ordered by Caroline Murat from Abraham-Louis Breguet in 1810 and delivered in 1812.

Reine de Naples ring in 950 platinum paved with brilliant-cut diamonds (2.48 ct), with baguette-cut diamonds (approx. 7.50 ct), and an oval-cut blue sapphire (9.50 ct).

The “Reine de Naples” anniversary special has a striking mechanism that marks the top of every hour with two chimes repeated three times. A pushpiece at 2 o’clock disables the function. Along with the usual technical imperatives involved in designing an oval movement, this timepiece incorporates the results of fundamental research by Breguet into the acoustics of chiming and repeating watches.

The geometry of the bridges, the oscillating weight and the decoration, displayed through the sapphire crystal back of the watch, form the image of a garden pavilion in the Mediterranean style, identical to the stately residences of Caroline Murat. To do justice to the lavish setting in which the piece is unveiled, the bezel and the snap of the “Reine de Naples” anniversary special are set with 28 brilliant cut diamonds and 27 blue sapphires. The striking hammers appear above the dial at 11 and 1 o’clock, while between them the diamond heart of a rose engraved in gold indicates the engagement of the hour striker. The silvered gold dial and its flange are paved with 233 brilliant cut diamonds and 303 blue sapphires with different nuances, offering a subtle color gradation. A crown placed at 4 o’clock and set with a briolette-cut diamond adds a sublime final touch to this exclusive anniversary watch, mounted on an alligator strap with a folding clasp set with 26 diamonds.

Reine de Naples tiara in 950 platinum paved with brilliant-cut diamonds (12.75 ct), baguette-cut diamonds (approx. 8.00 ct) and an 8.37 ct oval-cut blue sapphire.

The Reine de Naples jewelry set consists of a ring, pair of earrings, necklace and tiara, all in 950 platinum. The central motif of the jewels in the set is an oval-cut blue sapphire. It is surrounded by two ovoid rings paved with baguette-cut diamonds in an elegant and refined echo of the case of the first wristwatch, which had an oblong shape. 

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World Records Set for Eric Clapton’s Patek Philippe Watch and Patek Chronometer

Eric Clapton's watch with moon phases sold for $3.6 million. CHRISTIE'S IMAGES LTD. 2012

A Patek Philippe platinum perpetual calendar chronograph wristwatch with moon phases owned by famed guitarist Eric Clapton sold for $3.6 million at Christie’s Geneva Important Watch auction held Monday.

Described by the auction house as a reference 2499/100, movement number 869'308, and case number 2'817'876, it was manufactured in 1987. The Calibre 13''' mechanical movement was stamped twice with the Geneva seal. The watch from the famed rock and blues musician and songwriter (nicknamed “slowhand”) has 23 jewels, silvered matte dial, applied gold baton and square numerals, gold dauphine hands, outer Arabic five minute divisions, windows for day and month, three subsidiary dials for constant seconds, 30 minutes register and moon phases with date, circular case, stepped downturned lugs, snap on back. Finally it has a platinum Patek Philippe buckle, case, and a signed 37.5 mm. diameter dial and movement.

Patek Philippe unique platinum chronometer wristwatch sold for $4 million. CHRISTIE'S IMAGES LTD. 2012

While Clapton’s watch may have been the piece the received the most press, it didn’t receive the highest bid at the auction. That honor went to “J.B. Champion Platinum Observatory Chronometer.” a Patek Philippe unique platinum chronometer wristwatch with Guillaume balance, Bulletin d’Observatoire, additional diamond-set dial and platinum bracelet that sold for just under $4 million, a world auction record for a watch without complications.

Manufactured in 1952, the historically significant 13''' caliber, 13 Lépine, mechanical movement is numbered twice and stamped twice with the Geneva seal, three-quarter plate, 20 jewels, blued steel Breguet balance spring, Guillaume balance, micrometer regulator, silvered matte dial, applied baton numerals, outer beady minute divisions, gold feuille hands, subsidiary seconds, circular heavy case, snap on back, platinum Patek Philippe buckle, case, dial and movement signed 36 mm. diameter.

It great day for Patek Philippe as the top 10 lots was manufactured by the renown Swiss watch brand. This includes three other Pateks that sold for more than $1 million:

* An extremely rare, platinum chronograph wristwatch that sold for $1.6 million. One of three platinum examples ever made of this reference; it’s signed Patek Philippe & Co., Genève, ref. 1579, movement no. 867'005, case no. 645'566. Manufactured in 1946, the Calibre 13''' mechanical movement has 23 jewels, micrometer regulator, silvered matte dial, black enameled baton and applied gold Arabic numerals, Arabic five minute divisions, outer tachymetre scale, two subsidiary dials for constant seconds and 30 minutes register, large circular case, downturned angular or "spider" lugs, snap on back, and 18K white gold Patek Philippe buckle.

* An 18K gold World Time wristwatch with cloisonnè enamel dial depicting the Eastern hemisphere sold for more than $1.04 million. Signed Patek Philippe, Genève, ref. 1415 HU, movement no. 964'802, case no. 669'492. Manufactured in 1949, the calibre 12'''120 HU mechanical movement has 18 jewels, bimetallic compensation balance, micrometer regulator, polychrome cloisonné enamel dial depicting the map of Europe, Asia, Africa and Australia, applied gold baton and Roman numerals, gold hands, outer revolving ring depicting the diurnal and nocturnal hours on silvered and black background, circular case with revolving bezel engraved with the names of 41 cities in the world, teardrop lugs, and snap on back.

* An 18K pink gold chronograph wristwatch with two-tone silvered dial also sold for more than $1.04 million. Signed Patek Philippe, Genève, retailed by Gobbi, Milano, ref. 530, movement no. 868'800, case no. 514'608, it was manufactured in 1955. The Cal. 13''' mechanical movement stamped with the Geneva Seal, 23 jewels, two-tone silvered dial, applied pink gold baton and Arabic numerals, gold hands, outer railway five minute divisions and tachymetre scale, two subsidiary dials for constant seconds and 30 minutes register, large circular case, downturned lugs, snap on back, two rectangular chronograph buttons in the band, 18K pink gold buckle, case and movement signed by the maker, dial signed by the maker and the retailer.

Possibly the world's first chronograph. CHRISTIE'S IMAGES LTD. 2012

A timepiece of historical significance that was part of the auction was what may have been the first chronograph. It sold for $245,274. The “probably unique” and historically important inking chronograph with cylinder escapement, housed in mahogany box is signed Rieussec Horologer du Roi, Chronographe, Brevet d'Invention, circa 1821/22.

Nicolas Mathieu Rieussec is credited with inventing the chronograph on September 1, 1821.

The timepiece has a mechanical cylinder movement, plain three-arm balance, two revolving silvered dials on the front plate—the upper one for minutes, the lower one for seconds—both with fixed blued steel inking hand, brass button on the left side of the fausse-plaque activates the inking hand, brass button on the right starts and stops the movement, front plate signed. It measures 143 mm. long & 114 mm. wide not including the box.

This lot includes a note from Christie’s, which reads as follows:

It is very interesting to note that this historically important inking chronograph by Rieussec is not numbered, but instead inscribed "Chronographe, Brevet d'Invention". One may speculate for the reasons why Rieussec didn't number this superb piece, but one very logical explanation may be that this example here is the very one he used to obtain his patent.

Vaucher Fleurier 18K gold and enamel identical numbered, mirror-image pair of duplex watches. CHRISTIE'S IMAGES LTD. 2012

Another interesting item that received a great deal of interest was a set of two Vaucher, Fleurier 18K gold and enamel identical numbered, mirror-image pair of openface center seconds duplex watches with matching gold and enamel keys and fitted box, made for the Chinese market. It fetched $385,432, nearly triple its high estimate. Signed Vaucher, Fleurier, No. 160 & 160., circa 1830, it features mirror-polished and blued steel keywound duplex movements, bimetallic compensation balances with blued steel wedge-shaped weights, hinged gold cuvettes, white enamel dials, Roman numerals, gold spade hands, centre seconds, large circular cases, pink, light blue and translucent scarlet champlevé enamel floral decorated bezels, rims, pendants and bows, the backs decorated with finely painted, mirror-image polychrome enamel bouquet of flowers on mauve background.

All totaled, the auction held at the Four Seasons Hotel des Bergues, Geneva achieved more than $28.5 million in sales with 96 percent sold by lot and 97 percent sold by value. All prices realized for individual items and auction house totals include commissions.

“Today’s seven-hour marathon auction welcomed some 500 registrants from five continents, generating stellar sell-through rates as well as breaking numerous records,” said Aurel Bacs, International Head of Christie's Watch Department. “Collectors, public and private museums, the trade and also an investment watch fund, battled out the bidding for the best watches seen at auction this season, reconfirming.”

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David Beckham Is The New Face of A New Breitling Watch

David Beckham appears in new ad for Breitling. 

Breitling, said Tuesday that David Beckham is the new face of its Transocean Chronograph Unitime worldtimer watch. The new campaign establishes a long-term partnership between the Swiss luxury watch brand and the international sports celebrity and style icon.

Transocean Chronograph Unitime

The Transocean Chronograph Unitime, equipped with the new Manufacture Breitling Caliber B05, with its double disk enables permanent readings of the time in all 24 timezones through its crown-operated correction system.

Beckham stars in the Breitling advertisement featuring a visual shot on the runway of the Mojave Air & Space Port in California. The image, taken by American photographer Anthony Mandler, shows Beckham standing in front of a private jet wearing his Transocean Chronograph Unitime. 

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PPR Shopping for Luxury Jewelry and Watch Brands

François-Henri Pinault. Photo credit: InDigital Media Group

NEW YORK — French holdings company, PPR, is on the lookout for luxury jewelry and watch brands to strengthen its portfolio and meet demands in the booming Asian region.

François-Henri Pinault, chairman and CEO of the company that owns brands in the luxury, sports and lifestyle markets, said PPR identified a weakness in its portfolio in the growing men’s luxury segment. To rectify this it took control of the Sowind Group, which owns the Swiss luxury watch brands, Girard-Perregaux and JeanRichard. Then it acquired the Italian men’s fashion brand, Brioni.

The company already owns the French luxury jewelry brand, Boucheron, which it purchased in 2000. However, Sowind and Boucheron are the only companies it owns in the “hard luxuries” segment of the market. PPR primarily operates internationally in the apparel and accessories sectors in the luxury market and what it identifies as the “Sports & Lifestyle” market. Its luxury brands include Gucci, Bottega Veneta, Alexander McQueen and Balenciaga.

He said PPR will pursue hard luxury brands. “We are looking to any opportunities in jewelry and watches, particularly in Asia,” he said. “It is very important in Asia.”

Pinault made these comments Wednesday following a breakfast presentation at the Consulate General of France. During the event, he gave his views on a range of topics, including the growth of Asian market, the strategy of his diverse holdings company, and e-commerce and digital media.

Pinault said that for 50 years the growth in population and wealth in the world (800 million consumers) was centered in the U.S. and Japan. However, in 2006 the company identified that economic growth has shifted to emerging markets—particularly China, India, Brazil, and more recently, Indonesia—bringing 3 billion consumers to the worldwide market, and that this trend will continue.

“It means that in the next 50 years the growth is amazing,” Pinault said. “We don’t have any idea what it will be. We are always referring to the past but it’s no use. We cannot compare 3 billion people with more and more purchasing power to 800 million in the past… The question is what should we do to take advantage of those opportunities of growth?”

The company already made a decision to enter the luxury market in 1999. However, in 2006, it began to drastically change its portfolio to enter the sports and lifestyle segments. In 2007, it purchased Puma as the centerpiece of this new strategy.

Then, he said, the company needed to identify two areas of growth in this segment that would not compete with the footwear and sportswear company. It chose action sports, which led to the 2011 acquisition in Volcom, and the outdoors market segment.

PPR then took a giant step toward shoring up its e-commerce and digital media strategy by forming a joint-venture with online retail specialist Yoox to administer the e-commerce operations of most of its luxury brands.

Pinault says PPR’s digital media strategy has two parts. First, it needed what acquire the skill set, which resulted in the partnership with Yoox. Now it will try to create an experience that is similar to what customers get from going to one of its branded stores.

“You cannot offer an experience to your customer in the stores that’s completely different from the experience that you’re offering online,” he said. “You go to a Gucci store for the experience rather than mainstream stores. You have to reproduce that online.”

He continued, “The next step is to transform the e-commerce experience, our luxury experience, like it is in the stores. It will show that we can reproduce this conversation online.”

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The Exceptional Jewelry News Network Holiday Luxury Watch Guide

Check out the 11 timepieces below for men and women that would make anyone feel special this holiday season.

The 39mm diameter Montblanc Star Classique has eight indices and four numerals plated with gold, as are the leaf-shaped hour-hand and minute-hand. The little second-hand turns its circles on a subdial in the shape of the iconic Montblanc emblem at 6 o'clock. The sapphire crystal caseback reveals the self winding mechanical caliber MB 4810/408 with its ball-borne winding rotor and golden balance. It retails for $10,450 and is available at select Montblanc boutiques and retail locations.

The Vacheron Constantin Patrimony Traditionnelle Self-Winding is a classic watch from the oldest manufacturer of fine timepieces. It reveals its timeless character through details such as the slender bezel, the knurled motif on the screw-down case-back, 18k pink gold, applied hour-markers, and elegant dauphine hands. The gold case frames an opaline silver-toned dial punctuated by 18k pink gold hour-markers. The 41mm case houses an ultra-thin Calibre 1120. It retails for is $31,300. It is available at Vacheron Constantin boutiques in New York, Las Vegas, and Costa Mesa, Calif., or by calling 877-862-7555 for the nearest retailer.

The Girard-Perregaux Cat's Eye features 150 emerald-cut diamonds on its white gold case, 102 emerald-cut diamonds on its dial and 13 baguette diamonds on its black satin strap with ardillon buckle in white gold. It retails for $405,000 and is available at the Girard-Perregaux Boutique, 701 Madison Avenue, NYC. Phone: 646 495 9915.

Baume & Mercier Capeland 10088 is the brand’s first limited edition men's timepiece for Tourneau in the U.S. The 44mm automatic flyback chronograph has a blue tachymeter and black telemeter. It is distinguished by a copper-colored dial and a sapphire crystal caseback. The case is polished and satin-finished steel with an anti-glare face. It’s limited to 250 pieces, each one is numbered. It retails for $7,900 and is available at select Tourneau stores nationwide.

The Franc Vila FVi17 Chrono Bicompax contains the FVi Nº 7 Tourbillon Intrepido. This watch is designed to be sporty and elegant. There are two chronograph subdials at 3 and 9 o’clock with a date indicator at 6 o’clock. The black case is made of titanium, a material Vila favors for lightweight and durability. The complicated movement is caliber FV17, with the exclusive “Gold Concept Rotor.” It has a power reserve of 42 hours. It retails for $20,700. Visit francvila.com to view dealers of Franc Vila watches.

The Girard-Perregaux 1966 Equation of Time has a rose gold case and annual calendar. Then of course, there's the "equation of time" complication, which measure the difference between apparent solar time and mean solar time—perhaps the most esoteric of all measurements of time. It's shown with a gauge that measures the variance from +15m to -15m. It retails for $32,860 and is available at the Girard-Perregaux Boutique, 701 Madison Avenue, NYC. Phone: 646 495 9915.

A convex sapphire crystal and see-through case back give a glimpse of its inner workings of the Frederique Constant Worldtimer Manufacture. The dial comes in silver, with an engraved guilloche design or a detailed world map in the center. All functions are accessed by using the crown; there are no extra push buttons sticking out from the ultra-smooth and polished sides of the case. The Worldtimer function is achieved by selecting the desired city and placing it at the 12 o'clock position on the dial. Internal discs automatically synchronize, and after that, it’s possible to see what time it is in any of the 24 cities on the dial. It is limited edition collection of 1,888 pieces. It retails for $3,450 and is available at Bloomingdales.com.

The Jaeger-LeCoultre AMVOX7 Chronograph is inspired by the Aston Martin Vanquish, this watch has a titanium case with satin-finished lugs. A pivot mechanism allows the functions of the chronograph to be operated by pressing on the watch crystal. The chronograph function can be started or stopped by pressing the watch glass at 12’clock, while pressing at 6 o'clock resets to zero. The retail price is $26,000. Visit www.jaeger-lecoultre.com for purchasing information.

Frederique Constant Automatic Ladies Watch with Diamond features 56 diamonds. Hearts grace the inside of the dial while diamonds are used as hour indicators. It retails for $4,250 and is available at Bloomingdales.com.

The JeanRichard 1681 Collection is available in two versions: one with three hands and a date display, the other with a date display and small second display and in two colors, steel and pink gold. The time display appears against a classical rail-track minute circle. The three-hand version has applied Arabic numerals in a similar style to the hour-markers; the small second display at 9 o’clock counterbalances the date. The oscillating weight of the calibre JR1000, bearing the new signature of the brand, can be seen through the screw-in case-back. The 1681 pictured retails for $6,400 and is available at Kenjo Watches in New York.

Baume & Mercier Linea 10036 ladies watch comes with a double wrap strap in the light brown calfskin, however, there are several other colored bands (single and double) that may be interchanged. The 27mm round watch has a satin finish and a quartz movement. It retails for $1,950 with the interchangeable bands $200 each. Call 1-800-Mercier for purchasing information.

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