LONDON – Gross sales at Richemont surged 10 p.c to six.2 billion euros within the three months ending Dec. 31, with double-digit positive factors in all areas aside from China, the place demand continues to stagnate.
Richemont, dad or mum of manufacturers together with Cartier, Van Cleef & Arpels and Vacheron Constantin, described the vacation buying and selling interval as “very strong,” trumpeting the numbers as the best quarterly gross sales within the firm’s historical past.
All classes, aside from watches, posted double-digit will increase within the essential third quarter, which takes within the vacation procuring interval.
Gross sales within the jewellery division, which additionally contains Buccellati and Vhernier, rose 14 p.c in contrast with a 12 p.c uptick within the prior-year interval. The rise in gross sales got here each from established collections and new designs, in keeping with Richemont.
On the specialist watchmaking division, gross sales grew throughout all areas aside from Asia-Pacific. Richemont mentioned double-digit will increase within the Americas, and Center East and Africa areas, assist stem gross sales declines to eight p.c from 16 p.c within the first half of the 12 months.
The group’s “different” enterprise space, which incorporates trend and equipment, recorded an 11 p.c rise in gross sales, with Watchfinder & Co., which makes a speciality of pre-owned watches, rising within the double-digits.
Style and equipment maisons noticed their gross sales improve by 7 p.c, attributable to “continued progress” at Alaïa and Peter Millar, and the contribution of Gianvito Rossi, which was consolidated on Feb. 1, 2024.
Alaïa Spring 2025
Courtesy of Alaïa
All areas confirmed double-digit progress besides Asia Pacific, which contracted by 7 p.c attributable to an 18 p.c decline in Mainland China, Hong Kong and Macau.
Different Asian markets noticed their efficiency enhance, with optimistic ends in most international locations, and double-digit progress in Korea. In Japan, spend from vacationers and locals continued to drive gross sales, which elevated by 19 p.c in comparison with the prior-year interval.
In Europe, gross sales had been up 19 p.c, fueled by greater home demand and vacationer spending, primarily from North American and Center Jap prospects. Richemont mentioned all the principle international locations in Europe recorded an increase in gross sales within the three-month interval, with “notable performances” in France, Switzerland and Italy.
Within the Americas, gross sales had been up 22 p.c, with will increase throughout all enterprise areas on the again of sturdy native demand. Gross sales within the Center East and Africa rose by 20 p.c, led by the UAE and better vacationer spending.
Bernstein’s Luca Solca mentioned the outcomes “smashed” expectations, with Richemont’s efficiency within the quarter “considerably forward” of analysts’ forecasts.
Jefferies mentioned the positive factors in jewellery had been “outstanding,” with a “sharper than anticipated discount in pressures in watches, and extra progress in comfortable luxurious.” The financial institution attributed the bounce within the Americas to post-election confidence.
The financial institution added that Richemont “stays the liquid, high-beta luxurious title of alternative. This, after ample demonstrations of its potential to forestall gross margin shocks regardless of challenges in watches, of ongoing sturdy market share positive factors in jewellery, and a newfound willingness to sort out underperforming manufacturers beneath a brand new administration construction.”