Financials

Jewelry Was the Strongest Performer in Richemont’s Q3

FinancialsJan 22, 2024

Jewelry Was the Strongest Performer in Richemont’s Q3

Buccellati, Cartier, and Van Cleef & Arpels propelled the luxury titan to its highest quarterly sales total ever.

Buccellati high jewelry collection
A selection of high jewelry from Richemont-owned brand Buccellati. Richemont’s strong third-quarter performance was bolstered by jewelry sales.
Geneva—Richemont had a strong third quarter, with its jewelry division fueling the surge. 

For the third quarter ended Dec. 31, Richemont posted sales of €5.59 billion ($6.09 billion), a 4 percent year-over-year increase at actual exchange rates.

The results marked the company’s highest quarterly sales total ever, Richemont Chief Financial Officer Burkhart Grund said on an earnings call last week.

For the nine-month period, sales were up 5 percent at actual exchange rates to €15.81 billion ($17.22 billion).

The luxury titan said it performed well in the third quarter in spite of a “continued uncertain macroeconomic and geopolitical environment.”

Sales in all regions, except Europe, increased at actual exchange rates compared with the prior period, led by Asia-Pacific and Japan, with sales up 8 percent in both regions.

In the Americas, Richemont’s second largest market by revenue percentage as of Q3, sales were up 3 percent at actual exchange rates. 

Looking at its distribution channels, retail sales were up 6 percent year-over-year. 

Online sales slipped 9 percent though the jewelry brands were relatively resilient with “notable growth” in online sales for Buccellati, said Grund.

Wholesale sales and royalty income were flat, with Richemont noting that, “growth at the jewelry maisons more than offset softness in the two other business areas.”

Richemont’s jewelry brands, Buccellati, Cartier, and Van Cleef & Arpels, saw sales increase 6 percent year-over-year.

The brands “generated the strongest sales increase, underpinned by solid jewelry and watch sales,” said Richemont, with jewelry sales up by double digits in most regions, particularly Asia-Pacific and Japan.

Store openings bolstered sales, including a new Buccellati store in Hangzhou, China; a Van Cleef & Arpels in Ho Chi Minh City, Vietnam; and the new Cartier store in New York City’s SoHo neighborhood.

Cartier’s “Trinity” and “Grain de Café” performed well as did “Fauna” by Van Cleef & Arpels, and Buccellati’s “Opera Tulle” and “Ramage.”

 Related stories will be right here … 

Richemont’s watch brands are: A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis, and Vacheron Constantin.

Sales of these brands slipped 1 percent in the third quarter, but saw double-digit growth in the retail channel, offsetting lower wholesale and online sales.

In particular, A. Lange & Söhne, IWC, Jaeger-LeCoultre and Vacheron Constantin had strong retail performances, offsetting a double-digit decline in wholesale sales.

“Overall, the quarter was driven by double-digit growth at Vacheron Constantin and A. Lange & Söhne,” said Grund.

There were new store openings for Richemont’s watch brands as well, including Vacheron Constantin in Munich, “Casa Panerai” in Milan, and the first directly owned store for A. Lange & Söhne in Paris on Rue de la Paix.

Richemont also addressed the status of its online fashion retailer Yoox Net-A-Porter (YNAP) after scrapping plans to sell part of YNAP to luxury e-tailer Farfetch in December.

“Having parted ways with Farfetch free of any financial commitments, our maisons and YNAP continue to operate on their own platforms and technology, while we are reviewing the strategic options aimed at finding a new controlling shareholder for YNAP that can best harness its strengths and potential.

“YNAP thus remains an ‘asset held for sale’,” said Grund.

Richemont did not provide guidance for the fourth quarter or full year.

The Latest

Lightbox lab grown diamond pendant in yellow gold
Lab-GrownFeb 26, 2024
Lightbox ‘Significantly’ Lowered Its Prices in Q4

The De Beers-owned lab-grown diamond company dropped the price on its standard offerings from $800/carat to $600/carat.

JA New York signs
Events & AwardsFeb 26, 2024
JA New York to Bring the Diamond District to Spring Show

The upcoming show will have an immersive “47th Street Experience” for attendees.

GIA Dubai laboratory
GradingFeb 26, 2024
GIA Opens Lab in Dubai

The new DMCC Laboratory at Uptown Tower will initially serve clients in Dubai free trade zones.

GIA id100
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

Rolex Oyster Perpetual Day-Date 36 with affirmations
WatchesFeb 23, 2024
Rolex to Open New Watchmaking School in Dallas

The Rolex Watchmaking Training Center will welcome its first class this fall.

Weekly QuizFeb 22, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Guzema Freedom heart pendant for Ukraine
CollectionsFeb 23, 2024
Piece of the Week: Guzema’s ‘Freedom’ for Ukraine Pendant

Ukrainian jewelry designer Valeriya Guzema’s charitable “Freedom” collection is inspired by hope for the country’s future.

Elton John’s leopard print Rolex Daytona watch
AuctionsFeb 22, 2024
Elton John’s Leopard-Print Rolex Roars at Auction

Two Cartier watches also topped their estimates at Christie’s “The Collection of Sir Elton John: Goodbye Peachtree Road” evening sale.

flashforge pic.png
Brought to you by
WaxJet: Revolution in Jewelry Manufacturing

The WaxJet 400, recognized as the world's fastest wax printer, is bringing in a new era of precision and efficiency to industry.

Buccellati header
TrendsFeb 22, 2024
Buccellati to Open ‘Prince of Goldsmiths’ Exhibition

Set to be held in Venice, it’s a look through the maison’s history.

813-carat “Constellation” diamond in rough form
SourcingFeb 22, 2024
Lucara, HB Group Partnership Revived

It is another 10-year sales agreement in which all the larger rough recovered from the Karowe mine will go to HB Group for manufacturing.

Sebastian Clarke and Katherine van Dell of Heritage Auctions
AuctionsFeb 22, 2024
Heritage Auctions Adds 2 New Hires to West Palm Beach Office

Sebastian Clarke and Katherine van Dell, frequent appraisers on “Antiques Roadshow,” will join the new office.

National Jeweler columnist Sherry Smith
ColumnistsFeb 21, 2024
On Data: January Was a ‘Mixed Bag’ for Independent Jewelers

Sherry Smith dishes on the month’s highs and lows and the two categories consumers were loving ahead of Valentine’s Day.

Stock image of diamonds
GradingFeb 21, 2024
GIA’s Same-Day Service Now Available Everywhere

The new service, introduced to stem fraud related to lab-grown diamonds, will be offered at no cost for the time being.

Jam + Rico Claire’s jewelry
CollectionsFeb 21, 2024
Jam + Rico Debuts Second Claire’s Collection

Founder Lisette Scott was inspired by the intricacy, colors, and symbolism of African art and architecture.

Rapaport logo
SourcingFeb 21, 2024
Rapaport to Hold Another Natural Pearl Auction

Viewings start this week in New York and bidding will close on March 8.

National Jeweler columnist Peter Smith
ColumnistsFeb 20, 2024
Squirrel Spotting: Life After Rolex

Peter Smith shares advice from independent jewelers who used losing this cornerstone brand as a catalyst for reinvention.

Neile Adams McQueen and Steve McQueen
AuctionsFeb 20, 2024
Jewels from Neile Adams McQueen Shine at Bonhams

All 13 lots belonging to the actress and first wife of Steve McQueen sold at the recent “California Jewels” sale.

Stuller bench jeweler
Events & AwardsFeb 20, 2024
Stuller to Host Bench Jeweler Workshop in March

Registration is also open for its “Battle of the Benches” challenge.

Mary Ball Gorman of Henry B. Ball Jewelers
IndependentsFeb 16, 2024
Mary Ball Gorman of Henry B. Ball Jewelers Dies at 99

Gorman was an industry trailblazer, serving as the first female treasurer of Jewelers of America.

Jade Ruzzo gold and diamond Tennessee Torque necklace
CollectionsFeb 16, 2024
Piece of the Week: Jade Ruzzo’s Tribute to Tennessee

The movement of the 18-karat gold and diamond “Tennessee Torque” necklace is subtle.

Jared Goff and Claudia Cividino
MajorsFeb 15, 2024
Detroit Lions’ QB Jared Goff Going to Jared

Goff, whose fans hold up “He Went to Jared” signs at games, has signed a partnership with the retailer.

De Beers Venetia diamond mine
SourcingFeb 15, 2024
De Beers’ Production Down 8% in 2023

The company recovered 31.9 million carats of diamonds in 2023, compared with 34.6 million in 2022.

Gina D’Onofrio Heritage Auctions
AuctionsFeb 15, 2024
Heritage Auctions Names New Co-Director of Fine Jewelry

Industry veteran Gina D’Onofrio has rejoined the auction house.

Indian Diamond and Colorstone Association (IDCA) awards
Events & AwardsFeb 15, 2024
IDCA Hands Out Awards in Tucson

The association also celebrated its 40th anniversary.

A selection of engagement rings
TrendsFeb 14, 2024
5 Engagement Ring Trends for 2024

From three-stone rings to fancy shapes, experts weigh in on what consumers could be looking for this year.

Boucheron Power of Couture
CollectionsFeb 14, 2024
Boucheron’s New High Jewelry Collection Pays Homage to Ceremony, History

“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.

Rough diamonds from Gahcho Kue diamond mine
SourcingFeb 14, 2024
De Beers’ Rough Diamond Sales Improve Slightly

The diamond miner and marketer said “solid” holiday sales in the U.S. helped stabilize the industry.

×

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