Editor’s Note
This article highlights Richemont’s strong quarterly performance, driven by sustained demand for luxury jewelry from brands like Cartier and a notable rebound in the Chinese market.
Swiss luxury group Richemont, the parent company of Cartier, has continued its double-digit sales growth, buoyed by demand for high-end jewelry and a recovery in the Chinese market.
According to Bloomberg on the 15th (local time), Richemont announced that its sales for the third quarter ended December 31 last year increased by 11% year-on-year to 6.4 billion euros (approximately 109.287 trillion won).
The company owns brands such as Cartier and Van Cleef & Arpels. Richemont’s jewelry division sales, benefiting from the year-end holiday season effect, rose 14% to 4.78 billion euros (approximately 81.623 trillion won), exceeding market expectations.
Sales in the Asia-Pacific region (excluding Japan) increased by 6% on an organic basis. Within this, sales in China, Macau, and Hong Kong grew by 2%, indicating market stabilization after two years of sharp demand contraction, according to foreign media reports. This region was once a key growth driver for the luxury market but had previously impacted the entire industry due to deteriorating consumer sentiment.
Additionally, sales in the Americas, the Middle East & Africa, and Japan all recorded double-digit growth rates.
Sales in the specialist watchmakers division increased by 7%, showing signs of recovery in a previously sluggish business area. In contrast, sales in the fashion & accessories division, which includes brands like Chloé and Alaïa, remained at a similar level to the previous year.
Richemont’s earnings announcement comes ahead of the annual results releases of other major luxury groups like LVMH (scheduled for the end of this month), Hermès, and Kering.
The luxury industry has faced pressure over the past two years due to the downturn in the Chinese market, successive price increases, and a lack of creativity. However, recently, as investors judge that the worst phase has passed, particularly for large luxury companies, stock prices have been rebounding.