LONDON – Gross sales at Richemont surged 10 p.c to six.2 billion euros within the three months ending Dec. 31, with double-digit positive aspects in all areas aside from China, the place demand continues to stagnate.
Richemont, mother or father of manufacturers together with Cartier, Van Cleef & Arpels and Vacheron Constantin, described the vacation buying and selling interval as “very stable,” trumpeting the numbers as the very best quarterly gross sales within the firm’s historical past.
All classes, aside from watches, posted double-digit will increase within the essential third quarter, which takes within the vacation buying interval.
Gross sales within the jewellery division, which additionally consists of Buccellati and Vhernier, rose 14 p.c in contrast with a 12 p.c uptick within the prior-year interval. The rise in gross sales got here each from established collections and new designs, in response to Richemont.
On the specialist watchmaking division, gross sales grew throughout all areas aside from Asia-Pacific. Richemont mentioned double-digit will increase within the Americas, and Center East and Africa areas, assist stem gross sales declines to eight p.c from 16 p.c within the first half of the 12 months.
The group’s “different” enterprise space, which incorporates vogue and equipment, recorded an 11 p.c rise in gross sales, with Watchfinder & Co., which focuses on pre-owned watches, rising within the double-digits.
Vogue and equipment maisons noticed their gross sales enhance by 7 p.c, resulting from “continued progress” at Alaïa and Peter Millar, and the contribution of Gianvito Rossi, which was consolidated on Feb. 1, 2024.
Alaïa Spring 2025
Courtesy of Alaïa
All areas confirmed double-digit progress besides Asia Pacific, which contracted by 7 p.c resulting from an 18 p.c decline in Mainland China, Hong Kong and Macau.
Different Asian markets noticed their efficiency enhance, with optimistic ends in most nations, and double-digit progress in Korea. In Japan, spend from vacationers and locals continued to drive gross sales, which elevated by 19 p.c in comparison with the prior-year interval.
In Europe, gross sales have been up 19 p.c, fueled by increased home demand and vacationer spending, primarily from North American and Center Japanese clients. Richemont mentioned all the principle nations in Europe recorded an increase in gross sales within the three-month interval, with “notable performances” in France, Switzerland and Italy.
Within the Americas, gross sales have been up 22 p.c, with will increase throughout all enterprise areas on the again of robust native demand. Gross sales within the Center East and Africa rose by 20 p.c, led by the UAE and better vacationer spending.
Bernstein’s Luca Solca mentioned the outcomes “smashed” expectations, with Richemont’s efficiency within the quarter “considerably forward” of analysts’ forecasts.
Jefferies mentioned the positive aspects in jewellery have been “exceptional,” with a “sharper than anticipated discount in pressures in watches, and extra progress in mushy luxurious.” The financial institution attributed the bounce within the Americas to post-election confidence.
The financial institution added that Richemont “stays the liquid, high-beta luxurious identify of alternative. This, after ample demonstrations of its means to stop gross margin shocks regardless of challenges in watches, of ongoing robust market share positive aspects in jewellery, and a newfound willingness to deal with underperforming manufacturers beneath a brand new administration construction.”