Editor’s Note
This analysis highlights a significant geographic pivot in the luxury sector. While challenges persist in China, strong growth in the Americas, Europe, the Middle East, Africa, and notably Japan is driving global performance. Japan, in particular, is emerging as a key future engine for the industry.
The crisis in the Chinese market has not stopped the luxury sector, which, having understood it must necessarily orient itself towards other markets, has conquered the Americas, Europe, the Middle East, but also Africa and especially Japan in the last three months. And it is precisely the Japanese market that is destined to become a driver of the future global luxury economy.
Richemont recorded good performance with sales up 10% for the third quarter ended December 31, 2024, with double-digit growth in America, Europe, the Middle East, Africa, and Japan, but it doesn’t stop there.
There was a significant improvement compared to the first half in all business areas, driven by an acceleration in the Jewelry Maisons at +14%; Specialist Watchmakers at -8%, “Others” at +11%, including Fashion & Accessories Maisons at +7%.
The channel performance is driven by retail trade.
Sales for the last 9 months amounted to €16.2 billion.
All regions recorded double-digit growth, except for Asia-Pacific. Sales in the Asia-Pacific region contracted by 7%, largely due to an 18% decline in Mainland China, Hong Kong, and Macao combined, primarily impacted by the persistent weakness of demand in Mainland China. Other Asian markets saw their performance improve during the quarter, with positive results in most countries, including double-digit growth in Korea. In Europe, sales increased by 19%, fueled by a rise in domestic demand and tourist spending, particularly from residents of North America and the Middle East. All major countries in the region recorded an increase in their sales this quarter, with notable performances in France, Switzerland, and Italy. Sales growth amounted to +22% in the Americas region, with progress in all business sectors thanks to strong local demand. In Japan, spending by tourists and locals continued to stimulate sales, which overall increased by 19% compared to the same period last year. Sales in the Middle East and Africa region increased by 20%, driven by the United Arab Emirates and increased tourist spending.
Retail sales increased by 11%, with growth in almost all regions, driven by the jewelry maisons, further increasing their contribution to 71% of the Group’s sales. Wholesale sales increased by 4% compared to the same period last year, supported by a solid performance in the Jewelry Maison and Other business sector, which more than offset the decline in specialist watchmakers. Online retail sales increased by 17%, also driven by jewelry and other brands.
The Group’s four jewelry maisons – Buccellati, Cartier, Van Cleef & Arpels, and Vhernier – saw their growth accelerate this quarter to +14% compared to a difficult +12% in the same period last year. This was fueled by the performance of iconic Jewelry and Watchmaking lines supported by new releases that were very successful, particularly during the Christmas holidays. Sales increased across all channels and in almost all regions, with the largest contributions to growth coming from the Americas and Europe. Sales of specialist watchmakers increased in all regions except Asia-Pacific, with notable double-digit increases in the Americas, the Middle East, and Africa, thus mitigating the 16% decline rate seen in the first half to -8% in the third quarter. The Group’s Other business sector, which includes the Fashion & Accessories Maisons, recorded an 11% increase in sales compared to the same period the previous year. Watchfinder & Co. is experiencing double-digit growth, while the Fashion & Accessories Maisons see their sales increase by 7%, thanks to the continuous progress of Alaïa and Peter Millar, as well as the complementary contribution of Gianvito Rossi, consolidated from February 1, 2024.