Richemont Reports Resilient Q1 Sales Despite Regional Slowdowns

Ending on June 30th, the first quarter saw the company navigating through a landscape marked by tough year-on-year comparisons and a slowdown in Asia Pacific.

Notably, Richemont's jewellery maisons, encompassing prestigious brands like Cartier and Van Cleef & Arpels, stood out with a 2% rise in sales amounting to €3.59 billion (a 4% increase at constant rates). This growth, while solid, contrasts with the exceptional 24% surge recorded in the same period last year. The positive momentum was driven by strong demand across both jewellery and watches, although wholesale channels and the Asia Pacific region experienced some downturns, according to Richemont.

Geographically, Richemont saw growth across most regions except Asia Pacific, where sales fell by 19%. Europe recorded a 4% increase, the Americas showed an 11% rise, Japan surged by 42%, and the Middle East & Africa registered a 9% uptick. The boost in Japan was particularly noteworthy, fueled by local consumer spending and increased tourism, leveraging a favorable exchange rate environment.

However, Richemont's Specialist Watchmakers division faced challenges, with a notable 13% decline in sales. This decline was primarily driven by significant decreases in China, Hong Kong, and Macau, outweighing the positive performance in Japan.

Overall, Richemont reported consolidated sales of €5.3 billion for the first quarter, marking a modest 1% decline at actual exchange rates. This performance underscores the prevailing dynamics within the luxury goods sector, where despite global uncertainties, certain segments like high-end jewellery continue to exhibit resilience and steady growth.