Richemont, the Swiss luxury goods giant, reported resilient sales for the Q1 that ended 30th June. However, the overall growth was modest due to challenging comparisons from the prior year and a slowdown in Asia Pacific.
The bright spot was the performance of the company’s jewellery maisons, which include Cartier, Van Cleef & Arpels, and Buccellati. These brands saw a 2% increase in sales to €3.59 billion (+4% at constant rates) compared to a stellar 24% growth in the same period last year. Growth was supported by both jewellery and watches. All channels and regions posted higher sales except for wholesale and Asia Pacific, Richemont noted.
All regions except Asia Pacific (-19%) saw growth: Europe (+4%), Americas (+11%), Japan (+42%), and Middle East & Africa (+9%). Growth was driven by both local customers and increased tourist spending, particularly in Japan which benefited from a weak yen.
The Specialist Watchmakers division, however, faced a 13% decline in sales. This was primarily due to the significant drop in China, Hong Kong, and Macau, which outweighed the positive performance in Japan.
For the Q1, Richemont reported overall sales of €5.3 billion, a 1% decline at actual exchange rates, reflecting the current trends in the luxury goods market.