Asia Rebound Boosts Richemont Jewelry Sales

Leah Meirovich

Revenue from Richemont’s jewelry brands was strong in the first fiscal half as demand grew in most regions, primarily Asia Pacific.

Sales from the company’s jewelry maisons — Cartier, Van Cleef & Arpels, and Buccellati — rose 10% year on year to EUR 6.95 billion ($7.44 billion) for the six months that ended September 30, the luxury giant reported Friday.

Asia Pacific provided the strongest growth for the segment, driven by a 34% sales increase in mainland China, Hong Kong and Macau, following the removal of Covid-19 restrictions at the start of the year and increased tourism from the mainland to the municipality. Sales in Europe and the Americans were also solid.

“The strong performance was broad-based across product categories,” the company noted. “Iconic jewelry collections significantly contributed, along with other creative offers.”

Operating profit at the jewelry houses was up 5% to EUR 2.47 billion ($2.64 billion). In addition to the sales rise, the company attributed the stronger profitability to store renovations and reopenings.

Sales at specialist watchmakers, including Piaget and Vacheron Constantin, slipped 3% to EUR 1.99 billion ($2.13 billion), while operating profit from the segment slid 23% to EUR 391 million ($418.6 million).

Group revenue rose 6% to EUR 10.22 billion ($10.94 billion), with operating profit falling 2% to EUR 2.66 billion ($2.84 billion).

Sales were stronger in the first three months but began slowing in the second quarter as economic challenges affected consumer sentiment, Richemont explained. However, the company believes it will pick up again as the Chinese government issues stimulus checks to jump-start the economy, it added.

Main image: A Cartier store in San Francisco, California. (Shutterstock)

Source Rapaport