Jewelry Sales Bolster Richemont’s Q3

Geneva—Richemont’s third-quarter revenue increased, bolstered by e-commerce, strong sales in the Asia-Pacific region and in its jewelry division.

The luxury titan posted a 1 percent year-over-year increase in sales at actual exchange rates to €4.19 billion ($5.08 billion) compared with €4.16 billion ($5.02 billion) in 2019.

The results exceeded analyst expectations of €4.01 billion ($4.85 billion).

Sales in Richemont’s jewelry division, which includes Cartier and Van Cleef & Arpels, rose 9 percent in the company’s fiscal third quarter, reaching €2.37 billion ($2.86 billion) compared with €2.16 billion ($2.61 billion) a year ago.

Jewelry sales saw growth in all regions except Europe, and across all channels, said Richemont.

Cartier recently showcased its best-selling pieces, including Santos, Tank, Trinity, Love, Juste Un Clou, Panthère and Ballon Bleu, in the same advertising campaign.

Meanwhile, sales in Richemont’s specialist watchmakers division sank 7 percent to €758 million ($917 million) compared with €818 million ($989 million) in 2019.

Watch sales in the quarter were down in all regions except Asia-Pacific, where sales climbed double digits due in part to the Watches & Wonders event in Sanya, China.

Breaking it down by region, quarterly sales in the Americas were down 4 percent at actual exchange rates to €841 million ($1.01 billion), though Richemont noted strong domestic (non-tourism-related) sales.

The Asia-Pacific region saw the strongest growth, up 21 percent overall. Sales in China grew 80 percent, offsetting declines in other areas.

The Middle East and Africa recorded the second best performance for Richemont, with sales up 20 percent as tourist spending resumed in Dubai and domestic spending, particularly in Saudi Arabia, was strong.

In Europe, public health measures and a halt in tourism sent Richemont brands’ sales plummeting 22 percent.

In Japan, sales were down 2 percent, attributed to strong local demand before the reinstatement of public health measures.

Retail sales (sales at Richemont-owned and -operated boutiques) were up 3 percent to €2.28 billion ($2.76 billion) in the third quarter compared with €2.21 billion ($2.67 billion) a year ago.

Wholesale sales fell 12 percent in the quarter to €1.05 billion ($1.27 billion) compared with €1.19 billion ($1.44 billion) a year ago.

Online retail sales were up 13 percent to €841 million ($1.01 billion) compared with €747 million ($904 billion) a year ago.

Richemont did not provide financial guidance for the year ahead.