Companies

Strong third quarter for Richemont

Jan 22, 2025 Switzerland

The Swiss-based luxury group has reported a strong third quarter, underpinned by double-digit growth in all regions except Asia, where Mainland China remains the weak spot

In the third quarter of its fiscal year, which ended on the 31^stof December 2024, the group’s sales increased by 10% at constant exchange rates to 6.15 billion euros, on a comparable basis to the same period of the previous year. Richemont highlighted that it recorded double-digit growth in all regions except Asia Pacific.

In this region, third quarter sales were down by 7% year-on-year at constant exchange rates to 1.91 billion euros, “largely the result of an 18% decline in Mainland China, Hong Kong and Macau combined, primarily impacted by continued weak demand in Mainland China”.

On the contrary, the group’s sales in Europe grew by 19% at constant exchange rates to 1.46 billion euros in the third quarter, “fuelled by higher domestic demand and tourist spend, notably from North American and Middle Eastern residents”, and sales in the Americas increased by 22% to 1.65 billion euros, as compared to the third quarter of the prior fiscal year.

Similarly, in Japan, sales increased by 19% year-on-year at constant exchange rates to 592 million euros, driven by both tourist and local spending, and in the Middle East and Africa, sales increased by 20% year-on-year to 542 million euros, led by the UAE and higher tourist spending.

The four Jewellery Maisons (Buccellati, Cartier, Van Cleef & Arpels and Vhernier), Richemont’s main segment, accelerated their growth this quarter to 14% at constant exchange rates to 4.50 billion euros, as compared to a challenging 12% in the same period last year.

The Other segment, which includes the Fashion & Accessories Maisons, recorded an 11% increase in sales at constant exchange rates to 782 million euros, on a comparable basis to the third quarter of the prior year. However, sales at the Specialist Watchmakers segment remained in negative territory, down by 8% year-on-year.

Nine Months Results

In the nine months to date, Richemont reported a 4% increase in sales at constant exchange rates to 16.2 billion euros, “in a context of continued investment in the long-term growth prospects of the group’s Maisons”. The company also has a robust net cash position of 7.9 billion euros.

Image Credits: elle.com

Switzerland Companies Luxury Quarter Results Results Richemont