Richemont Jewelry Sales Up, Watch Sales Down
November 12, 24
(IDEX Online) - Richemont, the Swiss luxury goods conglomerate, reported a 2 per cent increase in half-yearly revenue from its Cartier, Van Cleef & Arpels and Buccellati jewelry maisons (at actual exchange rates).
But sales from its eight watch brands, including A. Lange & Sohne, Baume & Mercier, IWC Schaffhausen and Jaeger-LeCoultre, fell by 17 per cent, largely as a result of the slowdown in China.
Jewelry and watches account for almost 90 per cent of the group's revenue. The remainder comes from fashion, accessories, pens and other luxury items. Richemont's total revenue for the six months to 30 September was $12bn (€10.1bn), down 1 per cent year-on-year.
Richemont reported solid growth in sales across all regions, except for Asia Pacific, with double-digit growth in the Americas, and the US as its largest single market.
However it said limited price increases over recent months were not sufficient to fully offset cost increases in gold and other raw materials ued by its jewelry maisons.
"The global watch market is experiencing a slowdown, particularly in China, which is affecting all watchmaking brands globally," said chairman Johann Rupert, though he said high-end segments were showing greater resilience.
"Richemont demonstrated sustained resilience, against a challenging macroeconomic and geopolitical backdrop, supported by ongoing investment in our distribution and manufacturing capacities."
Richemont announced the purchase of Milan-based jeweler Vhernier in May for an undisclosed sum, but the deal wasn't completed until September, so it is not included in these results.
Pic courtesy Van Cleef & Arpels.