Richemont, the prestigious Swiss luxury goods conglomerate, has announced a notable 2% increase in jewelry sales for the six-month period ending September 30, 2024. This growth is primarily attributed to the exceptional performance of its renowned jewelry maisons, including Cartier, Van Cleef & Arpels, and Buccellati. However, the company faced challenges in its watch segment, where sales plummeted by 17%, largely due to a slowdown in consumer demand in China.
Jewelry remains a cornerstone of Richemont’s business model, accounting for nearly 90% of the group’s revenue. The total revenue for the first half of the fiscal year reached €10.1 billion ($12 billion), reflecting a slight decline of 1% compared to the previous year. Despite this overall dip, the jewelry division demonstrated resilience and growth across various regions, with double-digit increases in the Americas and a particularly strong performance in the U.S., which stands as Richemont’s largest market.
The jewelry segment’s success was buoyed by robust sales across all regions except Asia Pacific. The Americas saw a remarkable surge in demand, with jewelry sales rising significantly due to sustained domestic interest. In contrast, the Asia Pacific region experienced challenges, with sales affected by economic uncertainties and reduced consumer confidence in key markets such as China, Hong Kong, and Macau.
Chairman Johann Rupert commented on the current market dynamics: “The global watch market is experiencing a slowdown, particularly in China. This trend is impacting all watchmaking brands worldwide; however, we are encouraged by the resilience shown in our high-end segments.” He emphasized that while limited price increases have not fully countered rising costs for materials such as gold, Richemont continues to invest strategically in its distribution and manufacturing capabilities.
Richemont’s commitment to growth is underscored by its recent acquisition of Milan-based jeweler Vhernier, finalized in September. This strategic move enhances Richemont’s portfolio and reflects its dedication to expanding its presence in the luxury jewelry market.
Despite challenges in its watch segment—where brands like A. Lange & Söhne and Jaeger-LeCoultre reported declines—Richemont remains optimistic about future prospects. The company is actively working on improving inventory management and enhancing customer engagement through innovative marketing strategies.
As part of its ongoing evolution, Richemont has also undergone significant leadership changes. Recently appointed CEOs for Cartier and Van Cleef & Arpels are expected to bring fresh perspectives and drive growth within these iconic brands.
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