The Swiss luxury goods group exceeded forecasts with a 4% increase in sales in the third quarter of 2023. Despite a slowdown compared to the previous six months, this underscores the group’s resilience in a challenging environment for the luxury sector. Analysts remain optimistic about Richemont’s future performance, underlining its solid position and competitive advantage.
The Richemont Group, owner of such renowned brands as Cartier, Jaeger-LeCoultre, IWC, and Piaget, announced positive results for the third quarter of 2023, ended December, on Thursday, January 18.
The Swiss group’s sales reached 5.59 billion euros during this period, recording an increase of 4%.
Richemont thus outperformed the forecasts of Barclays (5.48 billion euros) and RBC (5.44 billion euros). However, it fell short of the 5.7 billion euros expected by Zuercher Kantonalbank. Despite this, the performance was well received by the financial markets.
Excluding currency effects, Richemont’s overall sales rose by 8% during the quarter, albeit at a slower pace than the 12% growth recorded in the previous six months.
These results are all the more satisfying as the luxury goods sector faces challenges such as persistent inflation, high interest rates and a rise in mortgage lending in the United States. These factors are impacting consumer confidence and appetite for luxury goods.
Mixed regional performances, but jewelry sparkles
During the quarter, Richemont recorded a 3% drop in sales in Europe, mainly due to lower tourism and fewer points of sale. By contrast, all other regions reported higher sales. China, in particular, posted impressive growth of 25%, offsetting the slower-than-expected recovery from COVID-19 restrictions.
To continue reading this article, subscribe or log in to your account
Discover our plans
- Every day, keep up to date with the latest business news from the world of luxury.
- Receive the essential luxury business news by email every week
- Access all our events
- The Luxury Journals and Luxus Magazine in print and digital versions
Subscribe for 1€
Become an active member of the community of luxury leaders.
Read also>RICHEMONT: FIRST-HALF SALES SLOW
Featured photo : ©cluk
