Strong Asia Demand Buoys Richemont Jewelry Sales

Jewelry sales at Richemont grew 6% for the full fiscal year amid strong demand in Asia Pacific and successful launches of several new collections. 

Proceeds from the category rose to a record EUR 14.24 billion ($15.49 billion) for the 12 months that ended March 31, Richemont said last week. The increase was driven by strength in all regions and price points, but primarily by Hong Kong and Macau, which saw “double-digit” sales growth. All of the company’s jewelry brands, which include Cartier, Van Cleef & Arpels, and Buccellati, had a solid performance, particularly the latter, which recorded a “sharp double-digit progression,” management noted. Meanwhile, operating profit for the segment rose 1% to EUR 4.71 billion ($5.13 billion). 

“Sales at the group’s three jewelry maisons…reached a new threshold,” the company said. “Jewelry and watch sales benefited from the successful launches of high-jewelry collections…and continued outperformance of iconic collections.” 

Sales in the watch division slipped 3% to EUR 3.77 billion ($4.1 billion) for the year, with growth in Asia Pacific — excluding China — Japan and the Middle East and Africa, outweighed by declines in other locations. The company’s watch brands include Piaget, Vacheron Constantin and IWC Schauffhausen. 

Group sales rose 3% to EUR 20.62 billion ($22.42 billion), the company’s highest-ever revenue, it said. Profit for the year came to EUR 2.36 billion ($2.56 billion) compared to EUR 301 million ($327.5 million) the previous year. 

Separately, Richemont appointed Nicolas Bos, CEO of jewelry brand Van Cleef & Arpels, to the reinstated position of company CEO, effective from June 1. Bos will oversee all the maisons, functions and regions, notably the jewelry maisons, Richemont noted. 

“I am truly delighted that Nicolas has accepted to assume the reestablished role of CEO,” said Richemont chairman Johann Rupert. “His vision and ability to uphold Van Cleef & Arpels’s tradition of excellence and creativity have been critical to the maison’s remarkable growth. Building on Richemont’s expanded scale and stronger focus on retail and jewelry, Nicolas will steer the group through the next phase of its evolution.” 

Image: A Van Cleef & Arpels store in Hong Kong. (Shutterstock)