Swiss luxury group Richemont, renowned for its prestigious brands like Cartier, Buccellati, and Van Cleef & Arpels, has reported a noteworthy 12% increase in sales at constant exchange rates during the first quarter of the fiscal year from April to June. However, the resurgence of Covid in China did have an impact on these impressive results. Despite the ongoing fragile health situation, Richemont managed to achieve sales of €5.2 billion, thanks to the resilience of its international markets.
Europe witnessed the strongest growth among all regions, with sales skyrocketing by 42% compared to the same period last year. This remarkable surge was fueled by the recovery of international flows and strong local demand, particularly in France where sales reportedly experienced triple-digit growth. Richemont also achieved significant successes in the Americas, where sales increased by 25%. Particularly noteworthy was the United States, which emerged as the most dynamic market, representing the largest single market for the group with a 22% share of its sales.
Japan and the Middle East/Africa regions also witnessed considerable growth in sales, with increases of 83% and 6% respectively. On the other hand, the Asia-Pacific region recorded a decline of 15%, mainly due to the anti-Covid measures implemented by the Chinese government in recent weeks. Despite a 37% drop in sales in China during this period, the Asia-Pacific region still remains the largest market for Richemont, accounting for €1.78 billion in sales for the quarter.
When it comes to sectors, the Fashion and Accessories division of the group experienced the most substantial growth, with a remarkable 28% increase in sales. This outstanding performance can be attributed to the success of brands like Peter Millar, Alaïa, Chloé, Montblanc, and the Belgian leather goods house Delvaux, which was acquired by Richemont last year. However, it is worth noting that the jewelry houses remain the primary revenue driver for Richemont, with sales reaching €3.015 billion (+12%). The watchmaking houses also achieved commendable results, with sales surpassing €1 billion (+10%).
Overall, Richemont showcased its ability to navigate through challenging times and deliver impressive results despite the impact of Covid. Its international markets played a crucial role in driving growth, particularly in Europe and the Americas. While the Asia-Pacific region faced challenges due to anti-Covid measures in China, it still remains a vital market for Richemont. With a robust portfolio of luxury brands, Richemont continues to solidify its position as a leading player in the luxury goods industry.
Useful links:
1. Cartier
2. Van Cleef & Arpels
