Editor’s Note
This article highlights Richemont’s robust quarterly performance, which surpassed market expectations. The strong results were primarily fueled by the exceptional performance of its jewelry division and solid sales growth in key markets like the Americas and Europe.
The Swiss group closed a solid quarter supported by the growth of its jewelry brands and in markets such as America and Europe.
Richemont has closed the holiday season with particularly positive results, driven by the strength of high-end jewelry and solid performance in some regions. In its third fiscal quarter, ended December 31, the Swiss group (owner of brands such as Cartier, Van Cleef & Arpels, Buccellati, IWC, and Chloé) recorded sales of 6.4 billion euros.
This represents growth of 11% at constant exchange rates and 4% in real terms. These figures exceed market expectations.
These numbers are especially relevant considering they are compared to demanding prior-year results. But also due to the rising cost of raw materials and more restrained luxury demand in some markets.
Growth was widespread across all product categories, with jewelry as the main driver.
Sales in the watchmaking firms also showed a positive evolution. They show an increase of 7% and mark their second consecutive quarter of growth.
The fashion and accessories area remained stable. Richemont highlights brands like Peter Millar and Gianvito Rossi, with growth of 3%, while Watchfinder & Co. advanced at a double-digit rate.
All regions where the Swiss group is present recorded advances.
The Middle East and Africa was the region with the best performance, with a 20% increase, highlighting the United Arab Emirates. Japan recorded solid growth of 17%, while Asia-Pacific advanced 6% at constant exchange rates. Notable improvement in Hong Kong and signs of recovery in China and Macao, where sales grew 2%.
All channels contributed to growth. The retail channel, which represents 72% of the group’s sales, increased by 12%, followed by the wholesale channel (+9%) and e-commerce (+5%).
Richemont closed the period with a solid net cash position of 7.6 billion euros, confirming its financial strength in a challenging environment for the luxury sector.