Swiss luxury group Richemont said its jewellery maisons, comprising Cartier, Van Cleef & Arpels and Giampiero Bodino, registered double-digit sales growth for the third quarter that ended December 31st 2017. “The jewellery maisons delivered the strongest sales progression, with an 11% increase reflecting strength in the retail channel,” Richemont said. Jewellery sales during the October-December 2017 quarter grew 11% at constant exchange rates to €1.829 billion and 5% at actual exchange rates versus a year earlier.
In Europe, the strength of the euro and challenging comparatives in the United Kingdom weighed on sales, which declined by 1%. Double-digit growth in Asia Pacific was driven by mainland China, Korea, Hong Kong and Macau. The performances of the jewellery maisons and specialist watchmakers (A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis, Vacheron Constantin and Ralph Lauren) were particularly noteworthy in this region.
Richemont noted that the 8% growth in the Americas region again reflected good performance from the jewellery maisons. The 5% increase in sales in Japan was supported by strong growth from the specialist watchmakers and a favourable currency environment.
Sales in the Middle East and Africa rose by 11%, benefiting from favourable currencies, the internalisation of external points of sales and the anticipated introduction of a value added tax in the UAE.
“Retail sales maintained strong momentum, recording double-digit growth of 13%, underpinned by solid performances from the jewellery maisons and specialist watchmakers. Wholesale sales decreased by 3%, reflecting qualitative upgrades to our external distribution network and the monitoring of inventory at our multi-brand retail partners. Growth in Asia Pacific in the wholesale channel was offset by declines in other regions,” Richemont said.
The specialist watchmakers’ performance, at +1%, was subdued, reflecting the continued monitoring of sell-in versus sell-out in the wholesale channel. Wholesale sales declined, partly offsetting double-digit growth in retail.