Swiss luxury group Richemont, owner of the Buccellati, Cartier, and Van Cleef & Arpels jewelry brands, recorded a 129% increase in sales in the three months ending on June 30. The outstanding performance was led by the Jewellery Maisons and Specialist Watchmakers, with a growth of 142%, to €2.52 billion (US$2.97 billion) and 143%, to €849 million (US$1 billion), respectively.
The Fashion & Accessories Maisons also performed well, reporting a 124% sales growth. The Americas generated the strongest regional performance, driven by local demand, followed by the Middle East and Africa.
In the period under review, sales exceeded pre-Covid levels. Sales in Europe contracted by 15%, as robust demand from local clientele could not offset the halt in tourist sales. In the Asia Pacific region, sales increased by 40%, with good momentum across most markets, particularly in mainland China, Macau, and South Korea. "COVID-19 has changed market dynamics, but China is continuing its growth. We can see that it has been an accelerator," said Cyrille Vigneron, CEO and president of Cartier International. "We have opened a couple of new stores in China already. Because of the phenomenal growth and number of visitors, the traffic is just enormous, and we are renovating and expanding our existing stores. Sales mostly came from retail, but e-commerce had a very phenomenal acceleration, especially through our flagship store on Tmall, which had fantastic results," he said.
The 43% sales growth at the Jewellery Maisons was driven by jewelry and watch sales at Cartier and Van Cleef & Arpels. Jewelry is Richemont’s largest product category, contributing to more than half of the group's sales. Overall the Group’s other business areas recorded a 7% decline in sales, partly reflecting persistent challenges in the wholesale channel, particularly in travel retail. To diversify their portfolio, Richemont announced earlier this month it had acquired Belgian leather goods label, Delvaux. The group's revenue rose by 121% to €4.4 billion (US$5.19 billion) compared to the first fiscal quarter of 2020 and was up 18% from 2019.
"The outstanding development of Cartier and Van Cleef & Arpels, in particular, means that these businesses have reached a size and scale that require the full attention of their leaders and support of the Group to continue on their remarkable trajectory," said Johann Rupert, Richemont Chairman.