Richemont reports record quarterly sales

Luxury goods group Richemont has reported a 10% rise in sales for the third quarter as double-digit growth was achieved in the Americas, Europe, Middle East and Africa, and Japan.

Richemont, whose brands include Cartier, Van Cleef & Arpels, Jaeger-LeCoultre, Piaget and Chloé, reported its highest ever quarterly sales of €6.2bn for the quarter to end-December.

Its nine-month sales, at €16.2bn, were up 4% at constant and 3% at actual exchange rates, it said in a statement on Thursday.

It noted a slower decline in Asia-Pacific, despite still challenging demand in China. Sales for this region contracted by 7%, largely due to an 18% decline in Mainland China, Hong Kong and Macau combined.

Other Asian markets saw their performance improve in the quarter, with positive results in most countries, including double-digit growth in South Korea.

In Europe, sales increased by 19%, fuelled by higher domestic demand and tourist spend, notably from North American and Middle Eastern residents. All main countries in the region recorded a rise in sales this quarter, with notable performances in France, Switzerland and Italy.

Sales growth stood at 22% in the Americas, with increases across all business areas on the back of strong local demand.

In Japan, spend from both tourists and locals continued to drive sales, which increased by 19% overall compared with the year-earlier period. Sales in the Middle East and Africa region rose by 20%, led by the UAE and higher tourist spend.

There was a marked improvement over the first half across all business areas, it said.

All distribution channels recorded a rise in sales. Retail sales increased by 11%, with growth in almost all regions, led by the Jewellery Maisons, and further raising its contribution to 71% of group sales.

Wholesale sales were 4% above the year-earlier period, sustained by solid performance at the Jewellery Maisons and other business area, which more than offset a decline at the Specialist Watchmakers.

Online retail sales were up 17%, also led by Jewellery Maisons.

The group’s four Jewellery Maisons — Buccellati, Cartier, Van Cleef & Arpels and Vhernier — saw their growth accelerate this quarter to 14% from 12% in the year-earlier period. This was fuelled by the performance of iconic Jewellery and Watch lines supported by novelties, which were successful, particularly during the festive season.

The strongest contribution to growth came from the Americas and Europe.

Specialist Watchmakers’ sales grew across all regions except Asia Pacific, with notable double-digit increases in the Americas and Middle East and Africa.

The group’s net cash position at end-December 2024 rose to €7.9bn from €6.8bn.

mackenziej@arena.africa