Richemont reports strong performance despite European slowdown

Swiss luxury group Richemont has announced impressive financial results for the three months ending December 31.

Written by Jewellery World

Swiss luxury group Richemont has announced impressive financial results for the three months ending December 31, with sales at renowned brands such as Cartier, Van Cleef & Arpels, and Buccellati reaching EUR 3.95 billion, marking a six percent year-on-year increase.

Despite facing a notable slowdown in Europe due to a drop in tourist spending, Richemont experienced a boost in domestic sales in the Americas. Furthermore, the return of tourism in key markets such as Hong Kong and China contributed significantly to offset the weakness observed in Europe.

Jewellery emerged as Richemont’s top-performing division during the quarter, registering growth across all regions except Europe. The revenue generated from jewellery sales also compensated for softer performances in other product categories.

Wholesale sales exceeded expectations, showing a four percent increase from the prior year. Strong sales at the jewellery maisons played a crucial role in this growth, more than compensating for a relatively softer performance in other segments of the group.

However, sales at specialist watchmakers, which include prestigious brands like IWC Schaffhausen, Piaget, and Vacheron Constantin, experienced a one percent year-on-year decline, reaching EUR 939 million. Richemont attributed this dip to a double-digit decline in wholesale sales, as retail growth for many of the company’s watch brands outperformed during the period.

Group revenue, encompassing jewellery, fashion, accessories, and timepieces, demonstrated a resilient performance, rising by four percent year on year to EUR 5.59 billion.

Looking at the broader nine-month period from April to December, Richemont reported an eight percent increase in jewellery sales, reaching EUR 10.91 billion. In contrast, sales at specialist watchmakers experienced a two percent decline to EUR 2.93 billion. 

Despite the varied performances across segments, the overall group sales for the nine months showed a positive trajectory, increasing by five percent to EUR 15.81 billion. Richemont remains optimistic about its continued growth and market resilience in the luxury sector.

See Richemont’s Q3 Report here.


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