Richemont's Sales Raise Fears of Jewellery Slowdown
- On Friday, Cartier-owner Richemont reported a 13% quarterly sales increase to €6 billion, driven by continued jewelry demand and robust growth in the US and Japan.
- The Swiss-based company bucked struggling luxury industry trends by relying on jewelry brands, which account for about 75% of total revenues, including Cartier, Buccellati, Van Cleef, Arpels, and Vhernier.
- Jewelry Maisons saw sales rise 14% to €4.4 billion, while specialty watchmakers including IWC, Jaeger-LeCoultre, and Piaget grew 12%.
- Richemont CEO Nicolas Bos noted strong demand for Alhambra, Clash, and Love collections, while Chairman Johann Rupert credited "operational discipline" for results.
- Profit for the six-month period rose 39% to 2.5 billion euros, while competitors including LVMH, Kering, Prada, Burberry, Moncler, and Zegna have seen slowing momentum.
25 Articles
25 Articles
South African billionaire Johann Rupert’s Cartier empire delivers $2.8 billion profit and builds an $8.6 billion cash pile—but shares fall 9% over jewellery slowdown fears
Johann Rupert’s Richemont has delivered higher sales and a 39% rise in profit, giving the South African billionaire’s luxury group an $8.6 billion cash pile as it faces speculation over a possible investment in De Beers.
The slowdown in the growth of Cartier's owner, which was explosive in the first quarter, cooled investors somewhat.
Cartier and Van Cleef & Arpels remain the jewels of the crown. The half-yearly figures of the Geneva group give another good news: the watchmaking specialties are coming back to life. But the market has played the Cassandre and the action has fallen "The profitability and the cash generation stand out, demonstrating that Richemont is reaping the fruits of the structural decisions taken several years ago." Jean-Philippe Bertschy, analyst responsi…
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Richemont Shares Slide 9% as Jewellery Sales Growth Falls Short of Expectations
Luxury group Richemont posted higher quarterly revenue and stronger first-half profits, but its shares fell as investors reacted to slower-than-expected jewellery sales growth. The owner of Cartier recorded a 14% increase in jewellery revenue, missing market forecasts and raising concerns about weakening demand in the luxury market.
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