WhatsApp
Email
Facebook
Twitter
LinkedIn
Sales at Richemont’s jewelry brands accelerated in the first half of its fiscal year as improvements in China capped off a strong global showing for the owner of Cartier and Van Cleef & Arpels.
Revenue from the Swiss conglomerate’s four jewelry houses grew 9% year on year to EUR 7.75 billion ($9 billion) for the six months that ended September 30, it reported Friday. The segment’s “operating result” — similar to operating profit — also rose 9% to EUR 2.54 billion ($2.95 billion).
Growth was “supported by a broad-based rise in demand for jewelry and watch collections across geographies,” the company explained.
The group, which also counts Buccellati and Vhernier among its jewelry labels, increased prices to compensate for higher metal costs, currency fluctuation, and — to a lesser extent — the initial impact of US tariffs.
The US fueled the sales growth, with revenue there increasing 15% year on year at actual currency rates, according to a company presentation. This expanded the market’s share of Richemont’s global total to 23%. Sales in Europe jumped 12%, with the Middle East and Africa up 18%. Revenue from Asia Pacific advanced 6%, while Japanese sales slipped 3%.
Richemont CEO Nicolas Bos noted a “stabilization” in China that reflected better sales on the mainland and to Chinese tourists spending in other countries. The company also saw “repatriation” of sales from Japan to Hong Kong in the second fiscal quarter, he pointed out in an investor call following the results.
The polarization of US demand and the “hollowing out” of the middle class also aligned with the company’s success, according to company chairman Johann Rupert. “If you speak to mall owners, they will tell you that Costco and Cartier are still doing very well,” the executive commented.
Group sales climbed 5% year on year to EUR 10.62 billion ($12.34 billion) for the six months, driven by the strength in jewelry. Profit for the period almost quadrupled to EUR 1.81 billion ($2.11 billion) from EUR 457 million ($531 million) a year earlier.
Image: A Cartier store in Venice, Italy. (Shutterstock)
