Richemont Report Shows Strong Growth in Luxury Goods

Richemont’s financial report released Wednesday showed the continued presence of healthy growth in the luxury goods market, concurrent with growth seen in the past 12 months. In the three month period from April to June, overall sales grew by 9 percent at actual exchange rates.

Cartier and Van Cleef & Arpels, part of Richemont’s jewelry ‘maison’, or group, reported underlying sales growth of 12 percent during the period. Total sales for the jewelry group in the quarter were €638 million ($879.5 million), a 12 percent growth from 2006’s €604 million ($832.7 million).

The European and Asia-Pacific regions were strong drivers of growth in the jewelry sector, while Japan experienced modest growth.

Richemont’s specialist watchmakers – Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai and A. Lange & Sohne – reported strong demand in all regions. Sales for the watchmaking group were €367 million ($505.9 million) for the period, an increase of 24 percent from last year’s €310 million ($427.3 million).

Europe ranked the highest in sales per geographic region, with €555 million ($765.1 million), up 14 percent from the April to June period last year, in which sales were €492 million ($678.2 million). Next was the Asia-Pacific region, which had the highest growth rate, with sales totaling €291 million ($401.1 million), an increase of 28 percent over last year’s €242 million ($333.6 million).

The Americas posted €256 million ($352.9 million) of sales, an increase of 10 percent over 2006’s €249 million ($343.2 million). Japan’s sales were €166 ($228.8 million) compared to last year’s €179 million ($246.8 million), for a constant rate increase of 5 percent (an actual rate decrease of 7 percent).