Swiss luxury group Richemont disclosed a strong performance in its latest financial report, with sales from renowned jewelry brands Cartier, Van Cleef & Arpels, and Buccellati experiencing a notable 6% year-on-year surge, amounting to EUR 3.95 billion ($4.31 billion) for the quarter concluding on December 31. This positive trend persisted despite a slowdown in Europe, marked by a decline in tourist spending. Richemont attributed the impressive results to improved domestic sales in the Americas, coupled with the resurgence of tourism in Hong Kong and China.
Jewelry emerged as the standout division for Richemont during the quarter, displaying growth across all regions except Europe. The revenue generated from jewelry not only compensated for weaker sales in other categories but also played a pivotal role in driving overall growth for the luxury group.
Richemont highlighted that wholesale sales exceeded the prior-year period by 4%, sustained by robust performances at the jewelry maisons, which more than offset a softer performance across the rest of the group.
On the flip side, sales at specialist watchmakers, encompassing brands such as IWC Schaffhausen, Piaget, and Vacheron Constantin, experienced a marginal 1% year-on-year decline, totaling EUR 939 million ($1.02 billion). This dip was attributed to the retail growth of several watch brands outperforming wholesale sales, which saw a double-digit decline.
The broader perspective of group revenue, encompassing jewelry, fashion, accessories, and timepieces, witnessed a commendable 4% year-on-year rise, reaching EUR 5.59 billion ($6.09 billion).
In the cumulative nine-month period from April to December, sales of jewelry surged by 8%, amounting to EUR 10.91 billion ($11.88 billion), while specialist watchmakers reported a 2% decline, settling at EUR 2.93 billion ($3.19 billion). The overall group sales for this period exhibited a 5% increase, totaling EUR 15.81 billion ($17.22 billion).
