Richemont Chair Shoots Down Reports of Acquisition by LVMH

FinancialsMay 15, 2023

Richemont Chair Shoots Down Reports of Acquisition by LVMH

The company reported record sales, driven by desire for classic lines like Cartier “Panthère” and “Alhambra” from Van Cleef & Arpels.

Cartier Tank “Normale” watch
This Cartier Tank “Normale” watch with yellow gold case and brown alligator strap was one of the updated Tank models the brand rolled out at Watches & Wonders Geneva this year. Cartier owner Richemont noted the popularity of classic watch and jewelry collections in its just-concluded fiscal year.
Geneva—Consumers’ penchant for tried-and-true classics propelled Richemont to a record-breaking year and prompted its chairman to shoot down speculation the luxury conglomerate was up for sale.

The Geneva-based company reported Friday that sales for its fiscal year ended March 31 hit an all-time high of €19.95 billion ($21.82 billion), up 19 percent year-over-year (14 percent at constant exchange rates).

Operating profit rose 34 percent to €5.03 billion ($5.50 billion).

Following the company’s release of its full-year results, Chairman Johann Rupert publicly refuted a report that appeared in a Swiss newspaper in February that the company was an acquisition target for competitor LVMH.

According to The Financial Times, he said Richemont is not for sale. He said he speaks with LVMH Chairman Bernard Arnault regularly and the two companies, “respect each other’s independence.”  

Rupert also said Richemont turned down a deal proposed by bankers to merge with Kering two years ago. 

During the fiscal year, the company’s jewelry brands—Cartier, Van Cleef & Arpels and Buccellati—posted 21 percent sales growth (16 percent at constant exchange rates). 

Richemont said the brands’ “iconic” collections outperformed: “Opera Tulle” and “Macri” at Buccellati, “Trinity,” “Panthère” and “Santos” at Cartier, and “Alhambra,” “Perlée” and “Fauna” at Van Cleef & Arpels.

During the fiscal year, Richemont reopened the Cartier flagship boutiques on Fifth Avenue in New York and in Paris and opened a new Van Cleef & Arpels flagship store in San Francisco. 

Sales for Richemont’s watch brands, which include Vacheron Constantin, IWC and Jaeger-LeCoultre, were up 13 percent (8 percent at constant exchange rates). 

Like jewelry, it was sales of classic collections that drove watch sales, including “Riviera” for Baume & Mercier, pilot’s watches for IWC, “Reverso” for Jaeger-LeCoultre, and “Overseas” for Vacheron Constantin.

The company opened a new Jaeger-LeCoultre flagship stores in Beverly Hills, California, during the fiscal year. 

 Related stories will be right here … 
Region-wise, Richemont’s sales in the Americas held up, growing 27 percent year-over-year against strong comps (89 percent sales growth) from the previous fiscal year.

The Americas is Richemont’s second-largest market.

Richemont said sales in the Americas slowed down in the second half of the year, partly due to the fact that Americans shopped overseas because of the strong U.S. dollar, while sales in its largest market, Asia Pacific, gained steam as the Chinese government relaxed COVID restrictions. 

Channel-wise, Richemont saw growth in all distribution sectors, with sales in its company-owned stores rising 22 percent, online sales increasing 12 percent, and wholesale sales up 14 percent. 

Looking ahead to the new fiscal year, Rupert said in the company’s full-year earnings release that he expects conditions to remain unsettled.

“Economic volatility and political uncertainty look set to remain features of the trading environment,” he said. “The group will therefore seek to maintain the necessary agility to manage fluctuating levels of demand. 

“I am confident our maisons are well-positioned to meet strong demand, notably driven by a significant resumption of Chinese travel. Richemont is fortunate to own such a unique portfolio of maisons with excellent long-term prospects.”  

The Latest

Exterior of the Colorado Convention Center
Events & AwardsJun 05, 2023
HardRock Summit Organizers Gear Up for Third Annual Show

More than 250 gem, jewelry, and mineral companies are expected to exhibit, including the American Gem Trade Association.

Alexandra Rosier gold and opal Eternal Love Hands necklace
TrendsJun 02, 2023
Take a Peek at Couture’s Newest Design Talents

This year’s Design Atelier is full of gems.

Saboo Fine Jewels emerald and titanium earrings
CollectionsJun 02, 2023
Piece of the Week: Saboo Fine Jewels’ Emerald Earrings

They’re a testament to the power of excellent design.

Brought to you by
The Next Step for GIA Diamond Reports

The most trusted diamond report, available in print or the GIA App.

Holly Wesche, Stan Razny, Ingrid Razny, Candy Udell
IndependentsJun 02, 2023
These Are the 2023 Retailer Hall of Fame Inductees

This year’s honorees include one of Florida’s largest independent jewelers and two multi-store independents in the Chicago and New York areas.

Weekly QuizJun 02, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Jane Taylor letter pendants
TrendsJun 01, 2023
See 50+ Jewels Debuting at Couture in Las Vegas

The industry’s most influential contemporary designers are showcasing their latest jewelry designs.

35-carat lab-grown diamond created by Maitri
Lab-GrownJun 01, 2023
35-Carat Lab-Grown Diamond Going on Display in Vegas

Created by Maitri Lab-Grown Diamonds and graded by IGI, it’s slightly bigger than the record-setting lab-grown diamond GIA just examined.

Brought to you by
Beyond Borders: Crucial Factors in Colored Stone Origin Determination

Navigate origin determination with Continuing Education seminars offered by the GIA Alumni Collective™.

Bottom Line Marketing Chief Growth Officer Gus Garcia and CEO Jackie Brooks
MajorsJun 01, 2023
Bottom Line Marketing Announces Restructured Leadership, New Service Offerings

The marketing agency has integrated its first C-suite.

Events & AwardsJun 01, 2023
Meet JCK’s 2023 Keynote Speaker

The jewelry trade show also will debut educational content centered around social media.

Lauren K gold and gemstone rings
TrendsMay 31, 2023
Here’s a Sneak Peek of New Jewelry to Check Out at JCK

Luxury kicks off today, with the full show in swing on Friday.

A pearl pendant and a pearl ring
CollectionsMay 31, 2023
Verragio’s Debut Fine Jewelry Collections Honor Company Heritage

One of the three new collections was inspired by the legend of a woman who traded her mansion to Cartier for two strands of natural pearls.

Rob Ballew
MajorsMay 31, 2023
Signet Jewelers Names New Head of Investor Relations

Rob Ballew will be tasked with communicating the jewelry giant’s plans and financial performance to investors.

Mobile mock-up screens of the new LUX Digital Vault app from Jewelers Mutual Group
MajorsMay 31, 2023
Jewelers Mutual Launches App for Retailers, Introduces New Brokerage

With the app, customers receive a 15-day insurance offer on new purchases while their coverage needs are being evaluated.

Rendering of Lightbox lab-grown diamond store in House of Showfields
Lab-GrownMay 30, 2023
Lightbox Is Testing Out a Trendy Concept Shop in Brooklyn

It is in House of Showfields, a bazaar-style retail space in the borough’s Williamsburg neighborhood.

Attendees at the JCK Las Vegas show
Events & AwardsMay 30, 2023
These Are the Can’t-Miss JCK Talks Education Sessions

From consumer trends to retail technology, these are the JCK Talks sessions that should be on attendees’ radar.

Constance “Connie” Barber Mellon’s David Webb Elephant Clip-Brooch
AuctionsMay 30, 2023
Sotheby’s to Auction Mellon Family Jewelry

Signature pieces from Cartier and David Webb will appear in the June jewelry auction.

Georgie Gleim, Shelly Sergent, and Molly Peterson
Events & AwardsMay 30, 2023
24 Karat Club of Southern California Recognizes 3 Honorees

They will be celebrated at the annual dinner dance and gala in the fall.

Historic and modern photos of diamond grading GIA
GradingMay 26, 2023
State of the Diamond Industry: AI and the Future of Diamond Grading

Gemologists have long used machines in diamond grading but technology has made it possible for them to “learn” how to do it on their own.

Supplier Spotlight Webinar John Pollard and Garry Holloway
Recorded WebinarsMay 26, 2023
Watch: Diamond Cut Quality: The Final Frontier Part 2

Supplier Spotlight Sponsored by IGI

My Next Question webinar series episode on selling lab-grown diamonds
Recorded WebinarsMay 26, 2023
Natural and Lab-Grown Diamonds: What It’s Like to Sell Both

Watch retailers Jeffery Bolling and Bobby Bengivengo discuss employee training, customer education and the sticky subject of future value.

Bulgari necklace set with 118.35-carat unheated Sri Lankan sapphire
AuctionsMay 26, 2023
Piece of the Week: A Bulgari Sapphire and Diamond Necklace

Set with a 118-carat unheated Sri Lankan sapphire, it just sold for $3.4 million at Phillips jewelry auction in Hong Kong.

Supplier BulletinMay 25, 2023
RAE Fine Jewelry Collection Debuting at JCK Luxury 2023

Sponsored by Noam Carver

Graphic of phishing scheme
TechnologyMay 25, 2023
State of Retail: Why Jewelers Need to Invest in Cybersecurity Now

As cybercrime incidents threaten the industry, jewelers need to know what they’re up against and the best ways to protect their businesses.

Louis Anthony Jewelers remodeled exterior
IndependentsMay 25, 2023
Louis Anthony Jewelers Is Remodeling and Expanding

The Pittsburgh jeweler is redoing the lighting and showcases, and adding a full hospitality bar as well as new shop-in-shops.

Yurman Family Crystalline Pass at American Museum of Natural History in New York City
SourcingMay 25, 2023
David Yurman Unveils Quartz Exhibition at AMNH

The Yurman Family Crystalline Pass is inside the museum’s brand-new Richard Gilder Center.

Stanley Zale new principal consultant Hill & Co.
MajorsMay 25, 2023
Stanley Zale Joins Hill & Co. as Principal Consultant

Zale has more than 40 years’ experience in the diamond industry, including 17 years as Stuller’s VP of diamonds and gemstones procurement.


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