Richemont: Double-digit growth for the luxury group in Q1 2022

The Richemont group, which owns the Cartier and Chloé brands, has taken analysts by storm, reporting growth of 12% at constant exchange rates and 20% at real exchange rates.


Richemont unveils its results for the quarter ending June 30, 2022 compared to the previous year. And this year’s growth is in double digits, exceeding analysts’ estimates.


All of the Group’s business areas, as well as most regions, generated sales growth of 12%, despite an uncertain environment and challenging comparisons.


Revenue growth was driven by strong double-digit increases in Europe, the Americas and Japan. Sales in Europe rose 42%, supported by robust domestic demand and a return of tourist spending, mainly by American and Middle Eastern customers.


Very strong sales growth in the Americas


La croissance a été forte sur certains marchés, particularly in France where sales grew by triple digits. In Asia-Pacific, the strict anti-covid policy and confinements led to a double-digit decline in sales in mainland China. Strong momentum in most other Asian markets, including Australia, Singapore, South Korea and Thailand, partially mitigated the decline in sales in the region, with Asia Pacific sales down 15% overall.


In the Americas, sales increased by 25% and the United States was Richemont’s largest market during the quarter, accounting for 22% of Group sales.


Japan posted the best regional performance with sales growth of 83%, supported by strong local demand. Sales in the Middle East and Africa rose 6%, reflecting strong domestic and tourism spending, particularly in Dubai and Qatar.


Double-digit growth for jewelry houses


Retail sales, the strongest performer, rose 18%, driven by double-digit increases in all business segments, with strong performances in Europe, the Americas and Japan. Online retail sales were up 5%.


Despite the disruption in China, the group’s jewelry houses generated sales growth of 12%, benefiting from strong retail sales and solid jewelry and watch sales at Buccellati, Cartier and Van Cleef & Arpels, among others.


Specialty watchmakers’ sales rose 10%, driven by online and offline retail sales, which together contributed 53% of the segment’s sales. Growth was achieved across most brands and regions, with continued outperformance by A. Lange & Söhne, Panerai and Vacheron Constantin.


Finally, the Other Group business sector, consisting mainly of Fashion and Accessories, posted the strongest increase in sales with +28%, supported by strong retail and wholesale sales with sustained demand in most of the Houses and regions, as the renewed creativity supported by new designers at Alaïa, Chloé and Montblanc had a positive impact on sales.


At June 30, cash and cash equivalents amounted to 5.4 billion euros, compared with 3.6 billion euros a year earlier.





Featured photo : © Richemont


Picture of Hélène Cougot
Hélène Cougot
Passionate about art and fashion, Hélène went to a fashion design school: the Atelier Chardon-Savard. She then completed her training with an MBA in Marketing at ISG. She has written for the magazine Do it in Paris and specializes in writing articles about luxury, art and fashion for Luxus +.

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