Luxury goods company Richemont has experienced a surge in sales during the third quarter of its fiscal year, driven by strong performance in Japan, the Middle East, Africa, and Europe. The company’s revenue from October to December reached over 5.4 billion euros, marking an impressive 18% growth compared to the period from April to December 2022. In real exchange rates, Richemont’s overall sales increased by 8% in the last three months of 2022 compared to the same period the previous year.
The standout performer in Richemont’s business was the jewelry segment, which saw a remarkable 11% growth in revenue amounting to 3.72 billion euros. Prestigious brands such as Buccellati, Cartier, and Van Cleef & Arpels notably contributed to this achievement. On the contrary, the sales of Richemont’s watch division, including well-known brands like Piaget, Vacheron Constantin, and Jaeger LeCoultre, witnessed a decline of 3% in revenue, reaching a total of 952 million euros.
Richemont’s fashion and accessories sectors also demonstrated notable growth, recording a 10% increase in revenue amounting to 729 million euros.
Among the various markets, Japan proved to be the most lucrative for Richemont, experiencing a substantial 30% growth and generating revenue of 477 million euros. The Middle East and Africa closely followed with a 20% increase in sales, boosted by the influx of visitors during the World Cup held in Qatar. Europe and America also contributed significantly to the company’s revenue growth, with increases of 17% and 16% respectively.
However, despite being Richemont’s primary market with a revenue of 1.9 billion euros, the Asia-Pacific region saw a decline in sales by 7%. This drop can be attributed to the adverse effects of the ongoing COVID-19 pandemic in mainland China, Hong Kong, and Macao, impacting customer traffic and store operations. Nevertheless, there is optimism for Richemont, as a report from Barclays suggests that China is expected to regain strength in 2023, particularly in the second quarter.
All distribution channels experienced revenue growth, with online sales notably increasing by 12%. Retail sales also played a significant role in Richemont’s performance, contributing to a 9% increase.
Richemont plans to announce its financial results for the fiscal year ending on March 31 in May. They have already indicated a remarkable 18% growth in revenue over the last nine months of 2022.
Useful links:
1. Richemont Official Website
2. Barclays Official Website
