Jewelry sales at Richemont grew 8% for the full fiscal year amid strong demand in most key markets, offsetting a decline at the company’s watches division.
Proceeds from the category rose to EUR 15.33 billion ($17.11 billion) for the 12 months that ended March 31, Richemont said last week. Double-digit increases in all regions except Asia Pacific drove the increase. Direct-to-client sales were particularly strong, comprising 84% of the total, while all of the company’s jewelry brands — Cartier, Van Cleef & Arpels, and Buccellati — saw strong growth for iconic collections. Meanwhile, the addition of Vhernier, which Richemont acquired during the year, also buoyed sales. Operating profit for the segment rose 4% to EUR 4.9 billion ($5.47 billion).
“Jewelry and watch sales increased on the strength of iconic collections,” the company said. “Jewelry maisons also continued to nurture desirability through inspiring high-jewelry collections and impactful and relevant events.”
Sales in the watch division slid 13% to EUR 3.28 billion ($3.66 billion) for the year, led by a 27% decline in Asia Pacific, which accounted for over 50% of sales for the division the prior year. Demand in China, Hong Kong and Macau was “challenging,” Richemont explained. That drop outweighed strong demand in the Americas and Japan, and primarily flat sales in Europe and the Middle East. Operating profit for the category plunged 69% to EUR 175 million ($195.4 million). The company’s watch brands include Piaget, Vacheron Constantin and IWC Schauffhausen.
Group sales for the full year rose 4% to EUR 21.4 billion ($23.89 billion). Profit for the period came to EUR 2.75 billion ($3.07 billion), up 17% from EUR 2.36 billion ($2.63 billion) the previous year.
Image: A Cartier store in Paris, France. (Shutterstock)
