Richemont, the luxury group behind Cartier, Buccellati and Van Cleef & Arpels, has delivered a strong quarterly performance, with its jewellery division generating €4.41 billion in sales. Supported by double-digit growth across its jewellery and specialist watchmaking businesses, the group recorded a 13% increase in overall quarterly revenue to €5.95 billion, reflecting the continued strength of its luxury portfolio and demand across key international markets.
Quick Summary
- Richemont reported a 13% increase in total quarterly sales to €5.95 billion.
- Its jewellery division recorded 14% growth, reaching €4.41 billion in sales.
- The specialist watchmakers division registered 12% sales growth to €833 million.
- The United States, Japan and Europe delivered sales growth of 15% or more.
- China continued to experience weakness, although the company remained confident about its eventual recovery.
- Richemont reduced its tourism-related sales exposure by half to approximately 15% of total sales.
- First-half net profit increased to €2.53 billion from €1.81 billion a year earlier.
- Speculation surrounding a potential De Beers stake acquisition remains unconfirmed.
- Succession discussions continue following Anton Rupert’s appointment as co-deputy chairman.
Strong Sales Growth Highlights Business Resilience
Shares of Richemont declined by as much as 9% on Friday as emerging signs of slower growth across the jewellery industry weighed on investor sentiment, overshadowing stronger-than-anticipated quarterly revenue reported by the Cartier owner.
Richemont’s Luxury Portfolio and Jewellery Market Position
Headquartered in Switzerland, Richemont operates some of the world’s most prestigious jewellery maisons, including Cartier, Buccellati, Van Cleef & Arpels and Vhernier, with an extensive portfolio of brooches, earrings and necklaces. Its significant exposure to the jewellery segment has helped the luxury group demonstrate greater resilience than several other players navigating a challenging global luxury market.
Jewellery Business Records Double-Digit Growth
Second-Quarter Jewellery and Watch Sales Performance
During the second quarter, Richemont’s jewellery division recorded a 14% increase in sales, reaching €4.41 billion ($4.88 billion) at constant exchange rates. Although the growth rate was below analysts’ expectations of 16%, based on a poll conducted by RBC, the division continued to deliver strong double-digit growth.
Meanwhile, the group’s specialist watchmakers division delivered a 12% increase in sales to €833 million.
Leadership Remains Confident in Long-Term Jewellery Demand
Management’s Outlook on Jewellery Demand and Pricing
CEO Nicolas Bos reassured analysts that the underlying long-term outlook for the jewellery industry continued to be favourable. He emphasised that the division’s growth was supported by increasing sales volumes rather than relying exclusively on higher product prices.
Chairman Johann Rupert highlighted the company’s disciplined pricing approach, indicating that Richemont intends to maintain its pricing strength without becoming overly aggressive with price increases.
Despite the stronger overall quarterly performance, Richemont shares were trading 4.7% lower at 1045 GMT.
Regional Performance Highlights Strength in Major Markets
China Continues to Face a Challenging Environment
Richemont’s Sales Growth Across Key Markets
Richemont, which also owns renowned Swiss watchmakers Piaget and IWC, reported a 13% increase in overall sales to €5.95 billion for the three months ended September. The performance exceeded the analysts’ consensus estimate of €5.89 billion, according to Visible Alpha.
Although the growth rate moderated from 20% in the first quarter, the results highlighted the resilience of Richemont’s business, supported by strong performances across the United States, Japan and Europe. Sales in these markets increased by 15% or more.
Despite the continued weakness in China, Rupert expressed confidence in the market’s eventual recovery, although its timing remains uncertain.
Reduced Dependence on International Tourism
Shift Towards Domestic Luxury Consumers
Richemont has significantly reduced its reliance on tourism-related purchases since the COVID-19 pandemic, cutting its exposure by half to approximately 15% of total sales, according to Bos.
This shift indicates that a substantial proportion of the company’s business across Europe, Asia and America is now generated by domestic customers rather than international travellers.
Bos described this development as a positive structural change, explaining that the business has become increasingly driven by local consumers, which the company considers more stable and sustainable over the long term.
First-Half Net Profit Exceeds Market Expectations
Improved Profitability and Financial Performance
Although Richemont does not publish quarterly earnings, it reported a substantial improvement in first-half net profit, which climbed to €2.53 billion from €1.81 billion in the corresponding period last year.
The reported figure also surpassed analysts’ consensus estimate of €2.26 billion, highlighting the group’s continued financial strength.
Potential Acquisitions and Leadership Transition
De Beers Stake Acquisition Remains Uncertain
Richemont’s Potential Interest in the Diamond Sector
Addressing speculation surrounding potential acquisitions, Rupert declined to confirm whether Richemont was in discussions to acquire a stake in diamond mining company De Beers from its controlling shareholder, Anglo American.
He clarified that the company had not reached a decision regarding any potential acquisition. He also indicated that any investment Richemont might consider in the diamond business would not have a material impact on its balance sheet or profit and loss account.
Succession Plans Remain Open
Leadership Transition and Future Succession
Rupert, aged 76, also remained non-committal about the company’s future leadership arrangements following the appointment of his son, Anton, as co-deputy chairman in September.
Discussing the succession process, Rupert indicated that he was not committed to a predetermined arrangement and suggested that the leadership transition was already underway.
FAQs
What were Richemont’s total sales in the second quarter?
Richemont reported total sales of €5.95 billion for the three months ended September, representing a 13% increase.
How much did Richemont’s jewellery sales grow?
The jewellery division recorded 14% growth, reaching €4.41 billion at constant exchange rates.
Which jewellery brands are owned by Richemont?
Richemont’s jewellery portfolio includes Cartier, Buccellati, Van Cleef & Arpels and Vhernier.
How did Richemont’s watchmaking division perform?
The specialist watchmakers division reported a 12% increase in sales to €833 million.
Which markets delivered strong sales growth for Richemont?
The United States, Japan and Europe recorded sales increases of 15% or more.
How much did Richemont’s first-half net profit increase?
First-half net profit reached €2.53 billion, compared with €1.81 billion in the corresponding period last year.
Is Richemont planning to acquire a stake in De Beers?
Richemont Chairman Johann Rupert did not confirm any discussions regarding a potential acquisition of a stake in De Beers from Anglo American.
Who is Anton Rupert?
Anton Rupert is the son of Richemont Chairman Johann Rupert and was appointed co-deputy chairman of the company in September.
Source: SVAR Media Network
About SVAR Media Network – India’s Best Source for Jewellery News, Magazines, Newsletters and Media
SVAR Media Network is India’s No. 1 Destination for Jewellery News, setting the gold standard in timely, trusted, & trend-driven coverage across the Gems & Jewellery industry. As the Most Followed Jewellery Magazine & Media House in India, SVAR delivers Daily Jewellery News India Updates, market insights, & global developments through its platforms like Jewellery Magazine, Newsletters, AI Powered News Bulletins, Website, Social Media, Podcasts, & much more.
Recognized as Asia’s one of the Best Media in Jewellery & one of the World’s Best Jewellery Media, SVAR Media Network sets Unparalleled Standards in the Gems & Jewellery industry. SVAR is the Most Trusted & Widely Read Voice in the Gems & Jewellery Community.
Renowned as India’s Best Jewellery Magazine & Leading Jewellery Media, SVAR blends legacy with cutting-edge innovation by delivering:
- Best in class Jewellery Magazine for the Gems & Jewellery Industry & Jewellery Enthusiasts
- Real-time AI-Powered Jewellery News via SVARA AI, the World’s First AI Anchor in Fashion, Gems & Jewellery Industry
- India’s One of the First Gems & Jewellery Podcasts
- Digital Jewellery Newsletters for professionals and enthusiasts
- ISO 9001:2015 Certification, the first in the jewellery-media sector, proving our commitment to excellence
- Asia’s First & World’s Second Meta Verified Jewellery Media Brand
Ranked #1 among the Top 5 Gems & Jewellery News Websites, Top 10 Jewellery Magazines in India, & Most Influential Jewellery Media Brands, SVAR Media Network is your Trusted Source for Accurate, Fast, & Future-Focused Jewellery News.
SVAR Media Network is India’s No 1 Digital Media in Jewellery Industry & continues to be the Leading Jewellery Magazine & a Global Leader in Jewellery Media. SVAR Media Network offers a diverse range of services, including: Monthly Magazines, Digital Newsletters, Al-Driven News Bulletins, Social Media Promotions, Website Blogs & Articles, WhatsApp Updates, Podcasts & more…
Whether you seek updates on New Launches, Trade Shows, Celebrity Campaigns, Trends or Market Movements, SVAR is the Authority in Jewellery News India & beyond.
Explore the World of Gems & Jewellery with SVAR Media Network — Your Best Source for Trusted, Trend-Setting Jewellery News & Media, Updates, Podcasts & more…
