Richemont jewelry, watch brands outshine fashion

Bellevue, Switzerland--Demand for jewelry and complicated timepieces was “robust” for Richemont in the fiscal year ended March 31, offsetting the weaker performance of Alfred Dunhill, Chloé and Lancel.

Cartier and Van Cleef & Arpels, the two jewelry brands Richemont owns, reported 4 percent year-over-year growth in global sales, from $7.14 billion to $7.46 billion. Wholesale orders of Cartier watches were down but jewelry demand was particularly strong in what Richemont described as a “subdued environment.”

Watch sales increased 9 percent from $3.77 billion to $4.10 billion. Richemont owns Baume & Mercier, IWC, Jaeger-LeCoultre, Roger Dubuis, Lange Uhren, Officine Panerai, Piaget and Vacheron Constantin.

Total sales for the company grew 5 percent (10 percent at constant exchange rates), rising from $13.92 billion to $14.60 billion. Profit was up 3 percent, from $2.76 billion to $2.84 billion.

The company’s retail sales, comprised of its directly operated boutiques and e-tailer Net-a-Porter, performed better than its wholesale division, with retail sales climbing 14 percent at constant exchange rates, compared with just a 6 percent sales gain for wholesale accounts.

On a regional basis, sales in the Americas increased 14 percent at constant exchange rates, outpacing sales growth in Europe (up 11 percent), Asia Pacific (up 6 percent) and topped only by Japan, where sales increased 23 percent at constant exchange rates. 

In his commentary issued with the release of the fiscal year results Thursday, Richemont called the fiscal year results “satisfactory.”

“Strength in the jewelry and specialist watch segments offset the softness of certain fashion Maisons and Montblanc,” the commentary stated. “As a result, and taking into account the substantial currency headwinds, which weighed on the group’s overall performance, operating profit was in line with the prior year.”

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