‘Outstanding’ Jewelry Sales Boost Richemont

RAPAPORT… Sharp growth at Richemont’s jewelry and watch brands buoyed the luxury company’s revenues in the first fiscal quarter amid a strong recovery in the US market. 

Proceeds from the group’s jewelry maisons — Cartier, Van Cleef & Arpels, and Buccellati — surged 132% to EUR 2.52 billion ($2.97 billion) in the three months ending June 30, the company said last week. Sales rose 38% compared to the same period of 2019. Revenue at watchmaker brands, including Piaget and Vacheron Constantin, jumped 136% year on year, and rose 3% versus 2019, to EUR 849 million ($1 billion).

The jewelry maisons and watchmakers saw an “outstanding performance,” Richemont said, with sales progressing in most regions and across all channels.

“Sales growth at the jewelry maisons was driven by both strong jewelry and watch sales at Cartier and Van Cleef & Arpels,” the luxury retailer added.

Group revenue rose 121% to EUR 4.4 billion ($5.19 billion) compared to the first fiscal quarter of 2020, and was up 18% versus the same period of 2019. Jewelry is Richemont’s largest product category, contributing more than half of sales.

Sales rose by triple-digit numbers in all regions except for Asia Pacific, which saw an earlier recovery than other areas. Revenue in the Americas was up 245%, while the Middle East and Africa saw 135% growth. Sales in Asia Pacific climbed 91%.

Meanwhile, Richemont made changes to its senior executive committee to allow the executives in charge of its maisons to focus solely on their brands. To that end, Cartier CEO Cyrille Vigneron and Van Cleef & Arpels CEO Nicolas Bos will step down from the board of directors.

“The continual evolution of our corporate governance structures reflects our commitment to meet the changing demands of our operating environment most efficiently,” said Richemont chairman Johann Rupert. “The outstanding development of Cartier and Van Cleef & Arpels, in particular, means that these businesses have reached a size and scale that require the full attention of their leaders…to continue on their remarkable trajectory.”

Image: A Van Cleef & Arpels store in New York. (Shutterstock)