Financials

For Richemont, Strong U.S. Q1 Sales Offset Slump in China

FinancialsJul 15, 2022

For Richemont, Strong U.S. Q1 Sales Offset Slump in China

Its jewelry houses, which include Cartier and Buccellati, posted double-digit growth.

Richemont headquarters in Geneva, designed by architect Jean Nouvel. The company posted a 20 percent increase in revenue in its first quarter. (Image courtesy of Richemont)
Geneva—Richemont kicked off its fiscal year on a high note, posting double-digit sales growth.

The luxury conglomerate, which owns high-end brands like Cartier and Van Cleef & Arpels, recorded sales growth across all channels.

Its strong performance in the Americas, Europe, Japan, the Middle East and Africa offset lower sales in Asia-Pacific, particularly in China.

Here are five key takeaways from its earnings report released Friday.

Richemont started the year off strong.

For the first quarter ending June 30, Richemont posted sales of €5.26 billion ($5.29 billion), a 20 percent year-over-year increase at actual exchange rates.

Its growth was led by retail, with sales up 26 percent year-over-year. Retail sales now account for 58 percent of the company’s total sales, up from 55 percent last year.

Wholesale sales were up 12 percent for the year.

Online retail sales also grew 12 percent, bolstered by strong growth among its jewelry and watch brands.

Richemont did not provide fiscal guidance for the year ahead.

Jewelry sales thrived in spite of a poor performance in China.

Richemont has several well-established jewelry brands on its roster, including Cartier and Van Cleef & Arpels.

Despite a slump in sales in China due to COVID-19 lockdowns in April and May, sales at its jewelry houses did well in the first quarter, which Richemont attributed to strong retail sales.

Sales in Richemont’s jewelry division were up 20 percent in the first quarter, reaching €3.02 billion ($3.03 billion).

Jewelry and watch sales at Buccellati, Cartier and Van Cleef & Arpels were especially strong.

Jewelry sales progressed in all regions and channels, said Richemont, except the Asia-Pacific region and in wholesale.

 Related stories will be right here … 

Luxury watch sales ticked higher.

Richemont also has several luxury watchmakers in its portfolio, including A. Lange & Söhne, IWC Schaffhausen, Officine Panerai, and Vacheron Constantin.

Sales in Richemont’s watch division were up 18 percent to €1 billion ($1.01 billion).

The growth was driven by both online and in-store retail sales, said the company.

“Growth was achieved in most maisons and regions with an ongoing outperformance of A. Lange & Söhne, Panerai and Vacheron Constantin,” said Richemont.

The U.S. was Richemont’s largest market in Q1.

Richemont’s sales growth in the quarter was bolstered by double-digit increases in Europe, the Americas, and Japan.

In the Americas, sales were up 25 percent year-over-year, driven by strong domestic spending.

The United States was Richemont’s largest market in Q1, accounting for 22 percent of group sales.

Sales in Europe were up 42 percent, buoyed by domestic demand as well as a return of tourists, particularly those from the Americas and the Middle East.

France did especially well, with sales climbing triple digits in the quarter.

The Asia-Pacific region posted the weakest performance due to COVID-19 lockdowns in China in April and May. Sales in mainland China fell 37 percent in the quarter.

However, the other Asian markets, including Singapore, South Korea and Thailand, performed well and somewhat offset the decline to 15 percent overall for Asia-Pacific.

Japan put on the strongest regional performance of all, posting 83 percent sales growth. Sales in the Middle East and Africa were up 6 percent.

Richemont maintained its focus on sustainability initiatives.

Richemont published its annual sustainability report last month, outlining its ESG performance for the year.

“We have continued to accelerate our sustainability efforts throughout FY2022, delivering against our short-, medium- and long-term goals,” said Chief Financial Officer Burkhart Grund.

In February, the company appointed Bérangère Ruchat as its chief sustainability officer and board member Jasmine Whitbread was appointed to chair the Governance and Sustainability Committee.

“With the arrival of Bérangère Ruchat and Jasmine Whitbread, we are stepping up our sustainability focus and laying the foundations that will drive best-in-class environmental and social progress across our operations and supply chains,” said Grund.

Its goals include a commitment to 100 percent renewable electricity across all its sites by 2025. It’s currently at 92 percent renewable electricity, a 28 percent improvement compared with 2019.

The full report can be read here.

The Latest

WatchesAug 19, 2022
WatchBox Names Jack Forster Global Editorial Director

He was previously editor-in-chief at Hodinkee.

CollectionsAug 19, 2022
Piece of the Week: Akaila Reid’s ‘Wavy’ Bangle

It’s the hero piece of the emerging designer’s new “Wavy Baby” collection.

Supplier BulletinAug 18, 2022
Why Online Auctions Are Ideal For Selling Hard-To-Find Jewelry

Sponsored by HiBid

Brought to you by
The American Mined™ Collection: Ethical Sourcing That Matters

Rio Grande provides a pathway to responsibly sourced gemstones.

ColumnistsAug 18, 2022
Squirrel Spotting: The Travails of Attracting and Retaining Talent

The job market is tight, making it paramount for employers to have the type of culture employees really crave, Peter Smith writes.

Weekly QuizAug 18, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
MajorsAug 18, 2022
Pandora Charms Pet Owners with New Accessories

The jewelry company has also hired a new chief marketing officer.

CollectionsAug 18, 2022
Hearts On Fire’s Latest Collection Reaches for the Sky

“Aerial” is edgy and glamorous, inspired by nature’s wild forms.

Brought to you by
Knowledge and Skills for Today’s Hot Topics

From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.

GradingAug 18, 2022
VDB, Lab Grown Source Add 8X to Cut Grade Search Filter

8X is now the top cut grade on both platforms, above Ideal.

CollectionsAug 17, 2022
Playing Doubles: Monica Rich Kosann, Chris Evert Team Up on Tennis Bracelets

It is the first tennis bracelet collab for the legend, whose lost-and-found moment put the term “tennis bracelet” in the jewelry lexicon.

Events & AwardsAug 17, 2022
6 Things to Know About the Second HardRock Summit

The event will bring gems, minerals, and fossils under one roof from Sept. 8-11 in Denver.

SourcingAug 17, 2022
Diamond Supplier SRK Pledges 750 Solar-Power Rooftops

The charitable mission is in honor of India’s 75 years of independence.

Lab-GrownAug 16, 2022
Pandora’s Lab-Grown Diamond Line Heads to the U.S.

The announcement preceded the Danish company’s release of its second-quarter results.

ColumnistsAug 16, 2022
The PR Adviser: Describe Your Customer

Columnist Lilian Raji continues her tour of the customer journey by asking, who is your customer? And, what do they like?

EditorsAug 16, 2022
Tiffany’s ‘Lock’ Bangle May Be Its Answer to Cartier’s ‘Love’ Bracelet

The unisex style succeeds in several ways while saying a lot about what’s trending in jewelry, writes Senior Editor, Fashion, Ashley Davis.

CrimeAug 16, 2022
3 Packages Containing $6.9M in Fake Watches, Jewelry Seized in Ohio

Customs officers in Cincinnati intercepted the shipments in early August, finding counterfeit Cartier jewels and Rolex watches.

SourcingAug 15, 2022
Q&A: Moyo Gems Celebrates 3 Years and Many Milestones

In honor of the anniversary, Pact’s Mines to Markets Director Cristina Villegas discusses recent expansion and where it goes from here.

Events & AwardsAug 15, 2022
David Webb to Hold an Exhibition of Its Animal Jewelry

“A Walk in the Woods” will open at the brand’s Madison Avenue flagship this fall.

Events & AwardsAug 15, 2022
Plumb Club, JVC to Hold Webinar on Sustainability Marketing

The Jewelers Vigilance Committee’s Sara Yood will give an overview of what the FTC guidelines currently say and what may be changing.

Lab-GrownAug 12, 2022
Report: State Bank of India to Begin Lending to Lab-Grown Producers

The loans will go mostly to the import of machinery rather than working capital, according to a recent article from The Economic Times.

AuctionsAug 12, 2022
2 Rolexes Paul Newman Gave to Stuntman Stan Barrett Head to Auction

The sale also will include a third Rolex, with all three watches tied to Barrett’s 1979 attempt to break the world record for land speed.

CollectionsAug 12, 2022
Piece of the Week: İTÄ Jewelry’s ‘Danza’ Ring

It mixes diamond shapes and colors.

Supplier BulletinAug 11, 2022
AGTA GemFair™ Denver – Back and Better Than Before!

Sponsored by AGTA

AuctionsAug 11, 2022
Sotheby’s Is Preparing its First Art Jewelry Auction This Fall

“Art as Jewelry as Art” features works from artists like Salvador Dalí, Alexander Calder, and Max Ernst.

IndependentsAug 11, 2022
Martin Katz Is Moving to a Penthouse

The jeweler is relocating his Beverly Hills store after 20 years and has begun developing a lifestyle brand.

MajorsAug 11, 2022
Brilliant Earth Opens First Missouri Showroom in St. Louis

It’s the company’s seventh showroom opening this year.

Events & AwardsAug 11, 2022
HRD Antwerp Is Bringing Back Its Jewelry Design Competition

The Belgian organization is calling for entries from all over the world, with an eye on attracting emerging talent.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy