LONDON – Robust demand for jewelry in Europe, the Americas and the Middle East drove Richemont’s sales up 6 percent at constant exchange to 5.4 billion euros in its first fiscal quarter ended June 30.
Sales rose 3 percent at actual rates in what Richemont described as a “volatile macroeconomic and geopolitical context.”
In a trading update on Wednesday, the luxury group said Cartier, Van Cleef & Arpels and other jewelry maisons notched double-digit gains for the third consecutive quarter with 11 percent growth at constant rates and 7 percent at actual ones during the three-month period.
Specialist watchmakers also performed better, with declines “softening” to minus 7 percent at constant rates, and minus 10 percent at actual ones. The declines reflected continued lackluster demand in China, Hong Kong and Macau, and a downturn in Japan. Sales were partly offset by double-digit growth in the Americas.
Sales at Richemont’s “other” division, which includes the fashion and accessories maisons as well as the Watchfinder & Co. resale platform, were down 1 percent at actual rates and 4 percent at constant exchange.
Richemont said there was “solid momentum” at Peter Millar and Alaïa, an encouraging performance at Chloé and “robust growth” at Watchfinder & Co. in the three-month period.
The Geneva-based giant, which has been bucking the overall slowdown in luxury goods, said higher tourist spend, “robust” demand from local clients and successful high jewelry events all contributed to demand in the first quarter of fiscal 2025-26.
Van Cleef & Arpels’ “Spring Is Blooming” in Rockefeller Center, New York.
Courtesy Van Cleef & Arpels
Sales in Europe were up 11 percent at constant and actual rates, with almost all main markets in the region seeing an increase in sales this quarter, with notable performances in Italy and Germany thanks to higher tourist spend and “robust” demand from local clientele.
The Americas region rose 17 percent at constant rates and 10 percent at actual ones, driven by supportive local demand “across all business areas and markets,” while sales in the Middle East and Africa region rose by 17 percent, led by the United Arab Emirates.
Asia-Pacific was down 4 percent at actual rates, with a 7 percent decline in China, Hong Kong and Macau offset by strong growth in almost all other markets. Sales in Australia and South Korea were up in the double digits.
In Japan, sales declined by 15 percent against a demanding 59 percent comparative in the prior-year period, with a strengthening yen “strongly reducing” tourist spend, most notably from Chinese clientele, Richemont said. Local demand remained positive.
The group’s net cash position on June 30 stood at 7.4 billion euros compared with 7.3 billion euros after accounting for the 426 million euros cash-out upon completion of the sale of YNAP to Mytheresa in April.