Explosion in luxury goods: Richemont grows in double digits

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Group sales rose 14 percent to 5,322 billion euros in the April-June 2023 period, as the luxury watchmaker of brands like Piaget and IWC and the expensive jewelery maker Cartier and Van Cleef & Arpels announced on Monday. The increase calculated in local currencies was 19 percent.

The jewelery industry once again made the strongest contribution to growth. There, sales at constant exchange rates in the first quarter increased by 24 percent to 3,599 billion euros. However, the watch business also grew significantly, by 10 percent, to 1,061 billion euros.

Overall, however, Richemont slightly missed analyst expectations.

All regions increased sales, with the exception of the Americas, where organic sales fell 2.0 percent. Asia-Pacific, the largest region, was the fastest growing region with 40 percent growth thanks to a strong recovery after the corona pandemic. This was followed by the Middle East/Africa (+15%), Japan (+14%) and Europe (+11%).

Retail sales were the most important sales channel, growing 24 percent organically, thus contributing well to two-thirds of total sales. Richemont earned a good quarter from wholesale (organ. +11%). On the other hand, online sales almost stagnated at just €298 million (+2%).

The YOOX NET-A-PORTER (YNAP) division, reported as “retained for sale,” saw an 8 percent drop in sales.

Richemont has determined the net liquidity of the group as 6.6 billion Euros as of 30 June 2023, after 5.4 billion Euros at the end of 2022. This is said to reflect strong sales in the reporting quarter.

The group, as always, did not comment on other possibilities. Richemont generally does not give a concrete outlook for the fiscal year. (SDA)

Source :Blick