Editor’s Note
This analysis of Richemont’s latest quarterly results reveals a group whose divisions are on sharply divergent paths. While overall revenue growth continues, the performance gap between its powerhouse jewelry maisons and its more challenged specialist watchmakers and “other” segment is widening, underscoring a strategic challenge for the luxury conglomerate.
After a sales increase of +4% for the fiscal year 2024-2025 ending in March, Richemont continues on its growth path. For its first quarter from April to June, the company saw its revenues increase by +3% at real exchange rates to 5.4 billion euros. Retail and online channel sales were each boosted by +3%, reaching 3.7 billion euros and 323 million euros respectively. Wholesale and royalty sales, at 1.3 billion euros, grew by +2%.
As in previous months, the two main business sectors are more polarized than ever, with the jewelry division showing strong progress and the watchmaking department in decline.
The four jewelry houses – Cartier, Van Cleef & Arpels, Buccellati, and Vhernier – recorded a sales increase of +7%, approaching 4 billion euros. Richemont indicated that all regions boosted their growth except for Japan.
In watchmaking – Vacheron Constantin, Piaget, Jaeger-LeCoultre, etc. – revenue fell by -10% to 824 million euros, mainly due to declines in China, Hong Kong, Macao, and Japan. Sales were partially offset by double-digit growth in the Americas region. Revenue from the ‘Other’ category – Chloé, Alaïa, Montblanc, etc. – also decreased, by -4% to 674 million euros.
Even though the market remains the most important for the firm, the Asia-Pacific region weighed down Richemont’s results. Sales decreased by -4%, settling at 1.7 billion euros. Japan’s revenue fell by -13% to 527 million euros. All other regions, however, progressed. Europe (1.3 billion euros) and the Middle East/Africa (524 million euros) increased their sales by +11%. The Americas reached 1.3 billion euros, driven by growth of +10%.