Richemont has another strong quarter as jewellery is star performer

Luxury giant Richemont’s Q3 results on Thursday showed the Switzerland-based business with sales that easily beat analysts’ estimates. 

In fact, constant currency sales at the world’s second-largest luxury group leapt 11% (analysts had predicted a 7.5% rise) as the jewellery division that includes Cartier and Van Cleef & Arpels was particularly strong.

So let’s look at the numbers in detail. Sales in the quarter to December rose 4% in total to €6.4 billion against expectations of a €6.28 billion total. 

That 11% constant currency surge was slower than the 14% jump seen in Q2 but the company said it was up against demanding double-digit comparatives in prior-year period.

Nonetheless, it said it saw “continued strength at Jewellery Maisons, with sales up by 14% at constant rates; further improvement at Specialist Watchmakers, up by 7%; [and] stable ‘Other’ sales, with Fashion & Accessories Maisons up by 3%”.

Peter Millar, Gianvito Rossi stand out

In monetary terms this meant sales of €4.785 billion in jewellery, €872 million in watchmakers and €742 million in the other division. And within Fashion & Accessories, Peter Millar and Gianvito Rossi were “notably showing solid momentum”. The company owns big names such as Chloé, Dunhill and Alaia as well but didn’t share their numbers.

It did say that it also saw growth across all regions at constant exchange rates, with “notable” double-digit performances in the Americas, Japan and Middle East & Africa.

Growth across all distribution channels was “solid” too, led by retail, which was up by 12% at constant exchange rates.

And its nine-month sales at €17 billion were up by 10% at constant exchange rates and 5% at actual rates.

Show me the money

Looking at the actual monetary figures, European sales rose 8% constant and 6% actual to €1.55 billion, while Asia Pacific rose 6% constant but fell 2% actual to €1.87 billion. The Americas rose 14% constant and 6% actual to €1.74 billion, while Japan increased 17% constant and 7% actual to €632 million. The Middle East & Africa rose 20% constant and 12% actual to reach €607 million.

By distribution channel physical retail was up 12% constant and 5% actual at €4.601 billion. Online retail rose 5% constant and fell 1% actual to €413 million while wholesale and royalty income rose 9% constant and 3% actual to €1.385 billion.