Richemont Sales Slide Amid Challenging Asia Market

Revenue at Richemont’s jewelry brands rose in the first fiscal quarter, even as ongoing weakness in Asia led to a drop in overall sales. 

Sales at Cartier, Van Cleef & Arpels, and Buccellati increased 2% year on year to EUR 3.66 billion ($3.99 billion) for the three months that ended June 30, the Swiss luxury group reported Tuesday. Strength in all other regions, primarily Japan and the Americas, helped offset the decline in sales in mainland China as well as in Hong Kong and Macau, the company observed. 

A weak comparison with the same period a year ago also contributed to a slowdown in Asia Pacific. In the same period of 2023, as the region experienced an economic recovery amid a post-Covid-19 reopening, China saw double-digit growth, Richemont noted. Sales in Hong Kong and Macau increased in the triple-digit range. 

Jewelry was Richemont’s top-performing division during the quarter. The increase in retail, which accounted for 69% of group sales, was “driven largely by…growth at the jewelry maisons,” the group explained. 

Sales at specialist watchmakers fell, primarily due to sluggish sales in Europe and Asia. Global revenue from the segment — which includes A. Lange & Söhne, Piaget, and Vacheron Constantin —  decreased 14% to EUR 911 million ($996.3 million). 

Group revenue, encompassing jewelry, fashion, accessories and timepieces, was down 1% to EUR 5.27 billion ($5.76 billion). 

Image: A Cartier store in Beijing, China. (Shutterstock)