After a record performance in 2023-24, the Swiss group is marking time in the first quarter of the current financial year, dragged down by Chinese activity, wholesale sales and the watch division. All this against the backdrop of a governance reshuffle and rumours about the intentions of Bernard Arnault, a modest shareholder.
Richemont’s first quarter 2024 confirms what was already apparent in the last three months of 2023.
Business is much tougher in luxury goods in general, and at the Swiss group in particular.
Slow first quarter
After a 2023-24 financial year marked by an all-time record, Richemont has just revealed a sluggish first quarter, weighed down by China, its wholesale sales and its watch division.
The group – which notably owns Cartier, Van Cleef & Arpels and Chloé – reported sales down 1% on a reported basis, but up 1% at constant exchange rates, to 5.27 billion euros for its first quarter 2024-25, ended June 30 this year.
In a press release, however, the world’s third-largest luxury group believes that“after growing by 19% (at constant exchange rates) in the prior-year period“, these latest results demonstrate “its resilience in a still uncertain macroeconomic and geopolitical environment”.
The luxury group’s detailed results reveal several Achilles’ heels.
China-Hong Kong-Macao trio in steep decline
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Read also > RICHEMONT UNVEILS A SOLID 2023-24 FINANCIAL YEAR
Featured Photo: © Cartier
