Resurgent Jewelry Sales Lift Richemont

RAPAPORT… Richemont’s jewelry sales increased 9% year on year in the third fiscal quarter as strong growth across most of its global network offset weakness in the European market.

Jewelry proceeds from Cartier, Van Cleef & Arpels and Buccellati rose to EUR 2.37 billion ($2.87 billion) in the three months ending December 31, Richemont said Wednesday. The company saw strong consumer demand for luxury jewelry, which offset the negative impact of temporary store closures. At constant exchange rates, jewelry sales were up 14%.

“Sales progression at the jewelry maisons was supported by good jewelry and watch sales at Cartier and Van Cleef & Arpels,” the company noted. “Sales grew in all regions except Europe, and across all channels.”

Sales at its watchmaker brands, including Piaget and Vacheron Constantin, fell 7% year on year to EUR 758 million ($918.8 million).

Group sales for the third quarter rose 1% to EUR 4.19 billion ($5.07 billion). Sales in Asia Pacific rose 21% amid double-digit growth in mainland China and Taiwan, with sales in the Middle East and Africa growing 20%. The strong performance in those markets outweighed a “marked contraction” of 22% in Europe, as governments implemented renewed public-health protection measures and travel restrictions to stem the resurgence of Covid-19. Sales in the Americas dropped 4%.

Jewelry sales for the nine-month period from April to December fell 8% to EUR 5.43 billion ($6.78 billion), while group sales slumped 16% to EUR 9.66 billion ($11.71 billion). 

Image: A Cartier store in Hong Kong. (Rityaecinos)