Richemont, the Swiss luxury group known for its esteemed brands, faced a mix of positive and negative results in its most recent quarter. While the Fashion & Accessories segment saw a decline in sales, the overall growth in most markets helped to offset the impact. The three-month period leading up to December 31 showcased strong performance in Europe and the Americas, with Asia Pacific experiencing modest growth despite difficulties in Hong Kong due to ongoing protests.
Overall, Richemont reported a 6% increase in total sales at actual exchange rates, amounting to €4.16 billion (£3.54 billion). The company highlighted strong double-digit growth in China and Korea, underscoring the resilience of these markets. However, the growth rate in Q3 was slower compared to the first half of the year, indicating some challenges faced by the luxury group.
Specifically, the fashion operations of Richemont, categorized under “Other Businesses”, struggled with a 3% decline in sales. This contrasted with the growth seen in Online Distributors, which includes Yoox Net-A-Porter and Watchfinder, showing a 5% increase to €670 million. Within this segment, the US market showed strong demand despite disruptions caused by competitive pricing in online retail and storm damage.
Challenges in Hong Kong and Japan contributed to a decline in sales for Richemont in those regions, while positive growth in China, Korea, Europe, Americas, and Middle East/Africa helped to balance out the weaker areas. Retail sales increased by 5%, with strong performance in the rest of China offsetting temporary store closures in Hong Kong. Wholesale sales remained steady, supported by franchise stores, particularly in Korea.
Jewellery Maisons within Richemont, including iconic brands such as Cartier, Van Cleef & Arpels, and Buccellati, reported a 6% increase in sales driven by impressive jewelry and watch collections. These brands were noted for their standout performances within the company.
Overall, Richemont’s ability to adapt to challenges and capitalize on opportunities allowed for sustained growth in key markets, despite setbacks in specific regions and sectors. Moving forward, the luxury group’s strategic approach will play a crucial role in maintaining its momentum within the competitive luxury segment.
For further insight into Richemont’s latest financial results and market positioning, feel free to visit Richemont’s official website and Bloomberg’s coverage on Richemont.
