Cartier, Van Cleef drive growth for Richemont

Geneva--Sales growth in the U.S. outpaced that of other regions in the third quarter for luxury goods conglomerate Richemont, with jewelry and upscale e-commerce site Net-a-Porter turning in the strongest performances. 

Sales in the Americas for the third quarter ended Dec. 31, which includes the holiday selling period, were up 7 percent at constant exchange rates, topping sales in Japan and Asia-Pacific as well as the group’s global sales, which were flat at constant exchange rates. 

Richemont said while sales in the Americas slowed in the third quarter as compared to the first six months of the year, it still was “good growth,” driven by jewelry and Net-a-Porter.

Globally, Richemont’s third quarter sales totaled $3.54 billion, up 4 percent at actual exchange rates but, as mentioned, flat when removing the effects of currency fluctuations. 

The group’s jewelry brands, Cartier and Van Cleef & Arpels, outperformed its watch brands, though neither posted positive results globally for the quarter. 

Jewelry sales slipped by 1 percent at constant exchange rates while sales for the company’s specialist watchmakers fell 4 percent. The decline in watch sales was due to “caution” on the part of its wholesale partners, Richemont said, and slower sales at the group’s own stores in Hong Kong and Macau. 

Richemont said its retail network continues to outperform its wholesale channels and, like many luxury conglomerates today, this seems to be where the company is focusing. Retail sales were up 2 percent at constant exchange rates while sales by the company’s wholesale partners declined 2 percent in the quarter. 

In addition to Cartier and Van Cleef & Arpels, Richemont owns the A. Lange & Sohne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin watch brands. 

It also has a joint venture with Ralph Lauren for that brand’s watches and jewelry, and owns Montblanc.