Luxury goods group Richemont has reported solid first-quarter results, driven by double-digit growth in Europe, the Americas and Middle East & Africa.
The group reported sales rose 6% at constant exchange rates to €5.4bn in the quarter to end-June and by 3% at actual exchange rates despite the volatile macroeconomic and geopolitical environment.
The group, whose brands include Cartier, Van Cleef & Arpels, Montblanc and Piaget, said there had been consistent growth across all distribution channels, led by Jewellery Maisons, where sales were up 11% in constant exchange rates.
Higher sales in Europe, the Americas and Middle East & Africa more than offset Japan’s sales decline against high levels in the previous period, while sales in the Asia Pacific region remained stable.
In Europe, sales grew by 11%, driven by robust demand from local clients and overall positive tourist spend, supported by successful high jewellery events. There was an increase in sales this quarter in almost all main markets in the region, with notable performances in Italy and Germany.
In the Americas, sales grew 17%, driven by supportive local demand across all business areas and markets. Sales in the Middle East & Africa region rose by 17%, led by the United Arab Emirates (UAE) market as well as higher tourist spend.
In Japan, sales declined by 15%, with a strengthening yen reducing tourist spend, most notably from Chinese clientele, while local demand remained positive. Asia Pacific sales were stable overall versus the year-earlier period, as a 7% decline in China, Hong Kong and Macau combined was fully compensated by robust growth in almost all other Asian markets. Sales in Australia and South Korea were up by double digits.
Retail sales accounted for 69% of group sales, with growth across all regions excluding Japan, while wholesale sales growth was driven by solid increases in the Americas, Europe and Middle East & Africa. Online retail sales showed robust growth across almost all regions.
The four Jewellery Maisons — Buccellati, Cartier, Van Cleef & Arpels and Vhernier — recorded an 11% rise in sales, marking a third consecutive quarter of double-digit growth, supported by both jewellery and watch product lines.
Specialist Watchmakers sales were 7% lower, largely reflecting declines in sales in China, Hong Kong and Macau combined as well as in Japan, partly offset by double-digit growth in the Americas.
Richemont’s other business area, which includes Fashion & Accessories Maisons and brands such as Chloé, Delvaux, Montblanc and Dunhill, declined by 1% year on year. Notable highlights included solid momentum at Peter Millar and Alaïa, an encouraging performance at Chloé and robust growth at Watchfinder & Co, it said.
The group’s net cash position stood at €7.4bn at end-June after accounting for the €426m cash-out on completion of the sale of YNAP to Mytheresa in April.
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