Richemont Jewelry Sales Surge, Watches Slump
May 20, 25
(IDEX Online) - Richemont reported an 8 per cent surge in jewelry sales in the year to 31 March, but saw revenue from watches slip 13 per cent.
The Swiss luxury goods conglomerate said sales at its Cartier, Van Cleef & Arpels, Vhernier and Buccellati jewelry maisons totaled EUR 15.3bn (USD 16.6bn).
Sales in all regions increased by 10 per cent or more, except for Asia Pacific (no figure provided).
Disciplined operating costs and targeted price increases helped mitigate the impact of higher gold prices, it said.
Weak demand for watches, especially in China and Asia Pacific, together with a strong Swiss franc, dented sales. Revenue for the year from its eight watch brands, including A. Lange & Sohne, Baume & Mercier, IWC Schaffhausen and Jaeger-LeCoultre, was EUR 3.3bn (USD 3.6bn).
During the year Richemont acquired the Italian jewelry maison Vhernier and invested in jewelry manufacturing facilities in France.
Sales for the whole Richemont Group were EUR 21.4bn (USD 23.2bn), with operating profit at EUR 4.5bn (USD 4.9bn).
The company said it has delivered a robust performance in a persistently uncertain macroeconomic and geopolitical environment.
Pic courtesy Vhernier.