Swiss luxury goods giant Richemont reported a modest 2% increase in revenue for the first half of the year, driven by its jewelry brands, including Cartier, Van Cleef & Arpels, and Buccellati. However, sales from its watch divisions, which include renowned brands like A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, and Jaeger-LeCoultre, dropped 17%. This decline was primarily attributed to a slowdown in China.
Jewelry and watches make up nearly 90% of Richemont’s total revenue, with the remaining income generated from fashion, accessories, pens, and other luxury items. The group’s total revenue for the six months ending September 30 was $12 billion (€10.1 billion), marking a slight 1% decrease from the previous year.
Despite the challenges in Asia Pacific, Richemont saw strong sales growth in other regions, particularly the Americas. The U.S. remains its largest market, with double-digit growth reported in the region.
The company noted that while it implemented some price increases, they were not enough to fully offset rising costs for raw materials like gold, which affected its jewelry operations.
Chairman Johann Rupert acknowledged the global slowdown in the watch market, especially in China, but highlighted that high-end watch segments are showing stronger resilience.
Richemont also announced the acquisition of Milan-based jeweler Vhernier in May, though the deal, completed in September, will not be reflected in these results.
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