Richemont’s Sales Up 16%

Richemont, parent company of the luxury fashion firms Cartier and Van Cleef & Arpels, reported a 16 percent growth in overall sales in the five months ending August 31. Cartier and Van Cleef & Arpels sales during the April to August period increased 13 percent.

According to Richemont Executive Chairman Johann Rupert, Cartier enjoyed “strong performance” in high-end jewelry, noting in particular the Love Jewellery collection and the La Dona, Pasha Seatimer and jewelry watches as strong contributors. At Van Cleef & Arpels Rupert noted the Pierres de Caract?re and l’Alhambra collections.

The Montblanc brand, in its centenary year, increased sales by 23 percent on the back of strong comparative figures last year. The brand is building on its core writing instruments ranges, growing its watch and leather goods businesses and is seeing good sales of its new silver jewelry lines, the company said.

Sales of the group’s fine watches, such as Jaeger-LeCoultre, Piaget, and Panerai, increased 16 percent, despite a very competitive market.

The company also reported good regional growth. Asia-Pacific, which includes China, has been a major driver with sales up by 20 percent. Europe and the Americas have both grown by 17 percent.

In Japan, however, a slower rate of growth in sales is reported, increasing eight percent. In yen terms underlying growth close to 16 percent.

In his outlook, Rupert predicts that first half of the year results will be good. However, he warns that a strong euro against the yen and dollar-based currencies will affect the group’s profitability to some degree. While 60 percent of the Richemont’s sales are outside Europe, the vast majority of its manufacturing is in Switzerland and elsewhere in Europe.

“There are areas that we can control,” said Rupert. “We manage Richemont conservatively and aim to maintain an appropriate degree of liquidity and a strong balance sheet. We will take an entrepreneurial but prudent approach to growing the business and, as I have said so often before, we always take a long-term strategic view.”

Richemont owns a portfolio of leading international brands or ‘Maisons’, which are managed independently of one another. The businesses operate in five areas: jewelry maisons – Cartier and Van Cleef & Arpels; specialist watchmakers – Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & S?hne; writing instrument maisons – Montblanc and Montegrappa; leather and accessories Maisons, and other businesses, including Chloe and other smaller maisons and watch component manufacturing activities for third parties.

In addition to its luxury goods business, Richemont holds an 18.8 percent interest in British American Tobacco.