Richemont Confirms Its Growth with Sales up 10% in the Third Quarter

As in the first half of the year, jewellery remains the group's main driver. In the third quarter, the jewellery houses – Cartier, Van Cleef & Arpels, Buccellati and Vhernier – posted a 14% increase at constant exchange rates (+6% at current exchange rates), after already posting 14% growth for the first half of the year and +17% in the second quarter.
The sector's strong performance confirms robust customer demand for high-end jewellery, with Richemont citing a particularly successful festive season, driven by its iconic lines. Growth was in double digits in all key regions, according to the report published this morning, 15 January.

After a long period of correction, watchmaking confirmed in the third quarter the signs of recovery observed in the second quarter. Sales by the group's watchmaking companies grew by 7% at constant exchange rates, marking a second consecutive quarter of growth, after a first half that was still slightly down (-2% at constant exchange rates).
While this improvement is notable, the comparison with the first half of the year highlights the fragility of the segment: over six months, watch sales continued to be penalised by weak demand in Asia-Pacific and an environment marked by rising gold prices, currency effects and US trade tariffs. Nevertheless, the third quarter confirmed a rebalancing, particularly in the Americas and the Middle East.

The ‘Other’ segment, which includes Fashion & Accessories, posted stable sales, even negative at current exchange rates at -5% (0% at constant rates) in the third quarter. Fashion Houses grew by 3%, driven by Peter Millar and Gianvito Rossi, while Watchfinder & Co. recorded double-digit growth.

In the third quarter, all regions grew at constant rates, with particularly strong performances in the Americas (+14%), Japan (+17%) and the Middle East & Africa (+20%). Europe grew by 8%, supported by local demand.
Asia-Pacific posted more moderate growth (+6% at constant rates), penalised by currency effects and a still weak recovery in mainland China. Over nine months, the region remained virtually stable, confirming that it remains the group's main focus.

Retail sales now account for 72% of the group's sales in the third quarter, up 12% at constant exchange rates, confirming a trend already evident in the first half of the year (76% of sales). Wholesale sales grew by 9%, while online sales posted more moderate growth (+5%), reflecting a marked return to the in-store experience for high-value purchases.
In an environment still marked by currency volatility, rising raw material costs and a still hesitant recovery in China, the Swiss group Richemont seems better positioned than its competitors to tackle the fourth quarter, thanks to the complementary nature of its brands, its pricing power, which seems to be working with customers, and a constant and renewed focus on its iconic lines, by brand.