Customers browse luxury products for sale inside a Cartier store, a unit of Richemont, in the GUM department store on Red Square in Moscow. Richemont’s sales in Euope increased 19% in the quarter to end December 31. Photographer: Andrey Rudakov/Bloomberg
Richemont’s share price shot up nearly 14% after it reported a strong 10% uplift in sales during its third quarter to December 31, its highest ever quarterly financial performance.
The €6.2 billion (R120bn) sales of the group’s branded luxury jewellery and accessories at constant and actual exchange rates reflected double-digit growth in the Americas, Europe, Middle East & Africa, and Japan.
The decline in sales was also slower in the Asia Pacific region in spite of challenging demand in China.
The share price was traded 13.95% higher to R 3,287.91 on the JSE Thursday morning after the release of the quarterly report, a price that was 42.9% higher than at the same time a year before.
There had been a “marked improvement” over the first half across all business areas, driven by an acceleration at Jewellery Maisons to +14%; Specialist Watchmakers at -8%, 'Other' at +11%, including Fashion & Accessories Maisons at +7%.
The group’s four Jewellery Maisons, Buccellati, Cartier, Van Cleef & Arpels, and Vhernier, saw growth to 14% against a demanding 12% comparative in the prior-year period.
Channel performance was led by retail, which was up 11% at constant and actual exchange rates. Sales increased in all distribution channels. Nine-month sales at €6.2bn reflected +4% growth at constant and +3% at actual exchange rates, in a context of continued investments into the group's Maisons' long-term growth prospects.
Asia Pacific sales contracted by 7%, largely the result of an 18% decline in Mainland China, Hong Kong, and Macau combined. Other Asian market performances improved, including double-digit growth in Korea.
In Europe, sales increased by 19%, driven by higher domestic demand and tourist spending, notably from North American and Middle Eastern residents. All major European markets secured a rise in sales in the quarter.
Sales growth was 22% in the Americas, with increases in all businesses. In Japan, spending from tourists and locals continued to drive sales, which increased by 19% compared to the prior year. Sales in the Middle East & Africa rose by 20%, led by the UAE and higher tourist spending.
Retail sales increased by 11%, led by the Jewellery Maisons, making up 71% of group sales. Wholesale sales were up 4%, and online retail sales were up 17%.
The group’s Other business area, which includes Fashion & Accessories Maisons, recorded an 11% rise in sales compared to the prior-year period. Watchfinder & Co grew at double digits, while the Fashion & Accessories Maisons saw their sales increase by 7%, thanks to continued progress at Alaïa and Peter Millar, as well as the added contribution of Gianvito Rossi, consolidated since 1 February 2024.
BUSINESS REPORT