Swiss luxury group Richemont reported that its Jewellery Maisons, comprising Buccellati, Cartier and Van Cleef & Arpels, showed strong resilience with sales in the second quarter growing by 4% at actual exchange rates and 7% at constant exchange rates, leading to an operating margin of 30.1% for the half year.
Johann Rupert, Chairman, Richemont, said, “Our Jewellery Maisons showed most resilience, reflecting successful digital initiatives and the continued appeal of iconic collections, notably for Clash de Cartier or Perlée at Van Cleef & Arpels.”
For the six months that ended 30th September, 2020, sales at the Jewellery Maisons were 18% lower at €3.06 billion than in the prior year comparative period. Following a drop of 41% for the first quarter of the financial year, sales returned to positive territory, with 4% growth in the second quarter.
Mid-single digit sales growth in Asia Pacific and high-single digit sales progression in the Middle East and Africa partly offset a marked contraction in the other regions which were severely impacted by temporary closures of stores, a halt in tourism, social tension and muted consumer confidence.
Digital events and initiatives such as high jewellery previews partly compensated for the cancellation of physical events, the company stated. The acceleration of online retail sales, distance sales and digital interactions with clients led to triple digit growth rates in online retail sales. In China, the Cartier flagship store which opened on Tmall Luxury Pavilion in January 2020 contributed to the strong online retail sales performance. This momentum could not outweigh the decline in retail and wholesale sales, Richemont noted.
Caption: Cartier brooch in platinum, opal, emeralds and diamonds. Photo: Katel Riou © Cartier