Cartier, Van Cleef & Arpels and Buccellati drive Richemont’s first quarter performance

During this period, which ended on 30 June, the group recorded a 20% increase in turnover at constant exchange rates, amounting to €6.33 billion – a figure well above the expectations of financial analysts, who had forecast €5.9 billion.

In an environment still characterised by geopolitical tensions and uncertainties, Richemont stands out for its resilience, owing above all to its iconic jewellery houses such as Cartier, Van Cleef & Arpels and Buccellati, which are the real driving force behind the group.

Demand for fine jewellery remains strong amongst an international clientele with very high purchasing power, who are largely unaffected by the vagaries of this difficult economic climate. Sales in the jewellery division rose by 24% over the quarter, more than double analysts’ expectations.

The Watchmaking division is also regaining momentum, with growth of 8%. Whilst this growth remains more moderate, it should be noted that this division has been particularly hard hit over the last two years by the slowdown in China and the normalisation of global demand for Swiss watches.

The performance of brands such as Vacheron Constantin, Jaeger-LeCoultre and IWC points to a recovery in demand in the high end luxury segment. The recent sale of Baume & Mercier to the Italian Damiani Group also illustrates the strategic shift undertaken by Richemont. By divesting itself of this brand, positioned as ‘accessible luxury’, the group is continuing to refocus its portfolio on the most exclusive and profitable brands.

In terms of performance by geographical region, the Americas remain the main driver, with growth of 27%. Asia-Pacific posted a 21% increase, driven by a marked acceleration in mainland China, Hong Kong and Macao, following several quarters of a hesitant recovery. Japan continues its exceptional momentum with growth of 36%, supported by domestic and tourist demand, whilst Europe grew by 11%. Only the Middle East and Africa region saw a slowdown, with growth limited to 3%.