Richemont, a luxury goods company, has continued its growth trajectory in the first quarter of its new financial year. Ending its previous year with a growth of 19%, the company has reported a 14% increase in sales at real exchange rates, or 19% at constant rates, for the first quarter of its 2023/2024 exercise. The total turnover for the company reached 5.32 billion euros.
The growth in sales was largely driven by the Asia-Pacific region, which experienced a resurgence of attractiveness after the lifting of health restrictions in China, Macau, and Hong Kong. Sales in this territory rose by 32% in real terms, amounting to over 2.2 billion euros. Europe also saw a growth of 10%, reaching 1.13 billion euros. Japan and the Middle East and Africa region witnessed sales increases of 6% and 12% respectively. However, the United States experienced a decline of 4% with one billion euros in sales during the first quarter.
Richemont’s jewelry segment, which includes brands such as Buccellati, Cartier, and Van Cleef & Arpels, contributed significantly to the company’s performance. This segment recorded a 19% increase in turnover, reaching nearly 3.6 billion euros. The watchmaking department, which includes Jaeger-LeCoultre, Piaget, and Vacheron Constantin, also saw a positive growth of 6%, totaling just over one billion euros.
Other sales, including fashion, accessories, and distribution platforms, experienced a 4% increase in turnover, amounting to 662 million euros. However, YOOX Net-A-Porter, which is now categorized as “discontinued activities,” reported a decrease of 10% in sales due to the challenging global environment for digital distribution pure players.
Overall, Richemont’s strong performance in the first quarter of its new financial year can be attributed to the rebound in the Asia-Pacific region, particularly in China, Macau, and Hong Kong. The company’s jewelry and watchmaking segments also played a crucial role in driving its growth.
Useful links:
1. Richemont Official Website
2. Financial Times
