Key facts
- Richemont's first-quarter sales increased by 20% in constant currencies to €6.33 billion.
- This figure exceeded analyst expectations of €5.90 billion.
- The company's jewelry division, including brands like Cartier and Van Cleef & Arpels, experienced an 11% rise in sales at constant exchange rates.
- Jewelry sales represented more than 70% of Richemont's total revenue for the quarter.
- Sales growth was particularly strong in the Americas (17%), the Middle East and Africa (17%), and Europe (11%) at constant currency rates.
Richemont, the luxury goods group behind Cartier and other high-end brands, announced first-quarter sales that exceeded analyst expectations, signaling resilience in the luxury market. The company reported a 20% increase in sales, measured in constant currencies, to €6.33 billion for the three months ending June 30. This performance surpassed the consensus forecast of €5.90 billion.
The strong results were largely driven by the jewelry division, which includes Cartier and Van Cleef & Arpels. This segment saw an 11% rise in sales at constant exchange rates and a 7% increase at actual rates, reaching €3.91 billion. Jewelry sales now constitute over 70% of Richemont's total revenue, outperforming other divisions.
Geographically, Richemont experienced significant growth in the Americas, with sales up 17% at constant rates, and in the Middle East and Africa, also up 17%. Europe saw an 11% increase in sales. The company attributed this success to robust demand from both local clients and tourists, bolstered by successful high jewelry events.
Founder and chairman Johann Rupert's disciplined pricing strategy, aimed at maintaining value for clients and avoiding drastic price hikes, was highlighted as a factor in the brand's strong client relationships and resilient performance. Analysts from Citi, Deutsche Bank, Bernstein, and CFRA Research noted Richemont's impressive sales momentum and its ability to weather the broader luxury slowdown more effectively than competitors, largely due to the strength of its jewelry maisons.