In the first half of the fiscal year, Richemont’s jewelry brands, including Cartier, Van Cleef & Arpels, and Buccellati, experienced a notable surge in revenue, driven by a growing demand in various regions, particularly the Asia Pacific.
According to the luxury giant’s Friday report, sales from the jewelry maisons increased by 10% year on year, reaching EUR 6.95 billion ($7.44 billion) for the six months ending September 30. The standout performer was the Asia Pacific region, where sales saw a remarkable 34% rise, attributed to increased demand in mainland China, Hong Kong, and Macau. This surge followed the removal of Covid-19 restrictions at the beginning of the year and a rise in tourism from the mainland to the municipality. Solid sales were also reported in Europe and the Americas.
Richemont highlighted the broad-based strength in performance across product categories, emphasizing the significant contribution of iconic jewelry collections and other creative offerings to the overall success.
Operating profit at the jewelry houses saw a 5% increase to EUR 2.47 billion ($2.64 billion). Richemont attributed the enhanced profitability not only to the rise in sales but also to store renovations and reopenings.
In contrast, specialist watchmakers, including Piaget and Vacheron Constantin, experienced a 3% decline in sales, amounting to EUR 1.99 billion ($2.13 billion). The operating profit from this segment also witnessed a 23% decrease, totaling EUR 391 million ($418.6 million).
While group revenue displayed a healthy 6% rise to EUR 10.22 billion ($10.94 billion), the operating profit dipped slightly by 2% to EUR 2.66 billion ($2.84 billion).
Richemont acknowledged that sales were more robust in the first three months but acknowledged a slowing trend in the second quarter due to economic challenges impacting consumer sentiment. However, the company remains optimistic, anticipating a resurgence in sales as the Chinese government issues stimulus checks to jump-start the economy.
