Editor’s Note
Richemont’s latest quarterly results, led by its powerhouse jewelry division, have significantly outperformed market forecasts. The report underscores the resilience of high-end jewelry demand and the group’s strong operational momentum.
On January 15, the third-quarter financial report (for the period ending in December) released by Richemont, the world’s second-largest luxury goods giant, showed that the group’s performance easily exceeded analyst expectations. Driven strongly by jewelry brands such as Cartier and Van Cleef & Arpels, the group’s sales surged by 11% at constant exchange rates, far surpassing the market’s previous expectation of 7.5%.
This quarter, Richemont’s total sales increased to €6.4 billion (analysts had expected €6.28 billion). Although the 11% year-on-year growth rate slowed compared to the 14% growth in the previous quarter, this performance still demonstrates strong commercial resilience considering the high base pressure from double-digit growth in the same period last year.
The Jewelry division grew by 14% at constant exchange rates, with sales reaching €4.785 billion, constituting the absolute core of the group’s revenue.
The Specialist Watchmakers division grew by 7%, with sales of €872 million, showing signs of recovery.
The Fashion & Accessories division grew by 3%, with sales of €742 million. Among them, the menswear brand Peter Millar and the footwear brand Gianvito Rossi showed particularly robust growth momentum.
Richemont achieved growth at constant exchange rates in all regions globally, with particularly outstanding performances in Japan and the Middle East.
The Japanese market surged by 17% at constant exchange rates (7% growth at actual exchange rates), reaching €632 million, benefiting from strong domestic consumption and tourism spillover effects.
The Middle East and Africa market grew by 20% (12% growth at actual exchange rates), reaching €607 million, recording the highest growth rate globally.
The Americas market grew by 14% (6% growth at actual exchange rates), with sales reaching €1.74 billion, indicating a strong recovery in the high-end consumer market.
The European market grew by 8% (6% growth at actual exchange rates), reaching €1.55 billion.
The Asia-Pacific market grew by 6% at constant exchange rates, but due to exchange rate fluctuations, it saw a slight 2% decline at actual exchange rates, to €1.87 billion.
From the perspective of distribution channels, Richemont’s direct-to-consumer retail performance was steady.
Physical retail grew by 12% at constant exchange rates, reaching €4.601 billion, reflecting the control of top luxury brands over end channels. Online retail grew by 5%, reaching €413 million.
Wholesale and royalty income grew by 9%, reaching €1.385 billion.