Richemont reported strong revenue growth from its jewelry brands in the first half of the fiscal year, despite overall sales falling due to a slowdown in China.
The company’s jewelry maisons—Cartier, Van Cleef & Arpels, and Buccellati—saw a 2% increase in sales, reaching EUR 7.09 billion ($7.6 billion) for the six months ending September 30. This growth was driven by strong performance in the Americas and Japan, which helped balance out significant weakness in the Asia Pacific region, particularly China.
However, revenue from the jewelry segment was lower compared to the same period last year, when sales in Asia surged following a rebound from Covid-19 restrictions. Additionally, Richemont noted that the high price of gold in 2024 contributed to increased raw-material costs.
Richemont’s chairman, Johann Rupert, acknowledged the company’s ability to maintain resilience amid a challenging economic and geopolitical environment. “Benefiting from the group’s balanced geographic mix and continued strength at our jewelry maisons, sales from continuing operations remained stable at constant exchange rates,” he said.
Despite the strong sales, operating profit at the jewelry houses fell 5% to EUR 2.33 billion ($2.5 billion). Richemont attributed the drop to rising raw-material costs, particularly gold, which outpaced the effect of limited price increases for jewelry products.
While Richemont acquired the Italian jeweler Vhermier during the period, the revenue from this acquisition was not included in the company’s total sales.
Sales at Richemont’s specialist watch brands, including Piaget and Vacheron Constantin, saw a 17% decline, totaling EUR 1.66 billion ($1.78 billion). Operating profit for the watch segment also plunged 59% to EUR 160 million ($171.6 million).
Overall, the company reported a 1% decrease in group revenue, totaling EUR 10.08 billion ($10.81 billion). Operating profit dropped by 17%, reaching EUR 2.21 billion ($2.37 billion).
Rupert concluded, “In the first half of this fiscal year, we continued to deliver sustained resilience in a world where uncertainty has become the norm.” He also noted that demand from China remains slow and is particularly impacting the company’s specialist watchmakers.
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