Luxury conglomerate Richemont, known for its prestigious brands including Cartier, Chloé, and Alaïa, has reported a successful third quarter with strong sales driven by the demand for jewellery and watches. The company reported a 32% rise in sales at constant currency rates, amounting to €5.658 billion. This represented a 35% increase at actual exchange rates, and an impressive 38% growth compared to two years ago at constant currency rates.
The Fashion & Accessories Maisons, which include Chloé, Alaïa, Montblanc, and Peter Millar, experienced a significant year-on-year sales growth of 37% at constant currency rates, equivalent to 40% at actual exchange rates. This translated to a total of €610 million in sales, a 17% increase compared to two years ago at actual rates.
However, the Jewellery Maisons, which comprise of Cartier, Buccellati, and Van Cleef & Arpels, outperformed this growth with a remarkable 38% increase at constant currency rates, 41% year-on-year, and 55% at actual rates compared to two years ago. Richemont’s strong presence in the fast-growing jewellery sector played a significant role in these impressive figures. Specialist Watchmakers, including IWC and Vacheron Constantin, also witnessed substantial sales growth, with a 25% and 29% increase on a year-on-year basis, along with a 20% increase compared to two years ago.
Even Richemont’s online-only businesses, such as Yoox and The Outnet, experienced a sales increase of 18% at actual rates and 15% at constant currency rates, amounting to €785 million in sales when compared to the previous year. Comparing sales to two years ago, there was a 17% rise at actual rates. The success of Richemont’s outlet websites reflects strong trading performance, although the company did not provide specific information regarding the performance of its full-price in-season webstores like Net-A-Porter or Mr Porter.
As for the geographical breakdown, the Asia Pacific region remained Richemont’s largest sales region, generating €2.128 billion, a 49% increase at actual exchange rates compared to two years ago, and a 23% increase from the previous year. The growth in this region was driven by strong demand in countries like Australia, China, and South Korea. Europe followed, with sales of €1.41 billion, a 12% increase from two years ago, and a substantial 44% increase on a year-on-year basis at actual rates. Despite Europe’s ongoing struggle with low tourism levels, luxury brands like Richemont are attracting more domestic shoppers, which indicates positive developments for future sales in the region.
In the Americas, sales rose by 53% compared to two years ago, and by 59% compared to the previous year, reaching €1.333 billion. Japan experienced more modest growth, with a 14% increase on a year-on-year basis, and a 16% increase from two years ago, amounting to €389 million. The Middle East and Africa region also witnessed a significant surge, with sales increasing by 60% and 33% respectively, totaling €398 million.
Analysts responded positively to Richemont’s Q3 results, especially considering the fast growth in the jewellery business and the recovery seen in Europe. The company’s strong performance, particularly in the luxury sector, provides a promising outlook for future sales.
For more information on Richemont’s Q3 results, please visit: Link 1 and Link 2.
