Richemont has reported sales growth of 12% for the first quarter ending 30 June 2022, rising from €4.39bn (£3.72bn) to €5.26bn (£4.46bn), with its Jewellery Maisons business also delivering 12% sales growth from €2.51bn (£2.13bn) to €3bn (£2.55bn).
The group’s other business areas, mostly composed of Fashion and Accessories Maisons, posted the “strongest” sales increase at 28%.
The growth was driven by 42% sales growth in Europe amid “robust” domestic demand and a return in tourist spending, primarily from American and Middle Eastern clients. All in all, the US, Richemont’s largest single market for the quarter, sales grew by 25% and represented 22% of group sales.
However, the enforcement of a zero covid policy in Asia Pacific led to a 37% drop in sales in mainland China and Macau SAR (China), and to a single-digit sales reduction in Hong Kong SAR (China). Sales in Asia Pacific overall contracted by 15%.
Despite the disruption experienced in China, the Jewellery Maisons generated a 12% sales growth, benefitting from retail sales and jewellery and watch sales at Buccellati, Cartier and Van Cleef and Arpels.
Overall, Richemont’s growth was led by retail, now accounting for 58% of group sales, compared to 55% in the prior year period. Richemont recorded sales growth across all channels and business areas, with online distributors increasing by 2% at actual exchange rates, and other business areas surging 28%.
Additionally, direct sales to clients for the group as a whole represented 75% of group sales, a circa 200-basis points increase over the prior year period.
Sales in the wholesale channel also increased by 4% as higher sales at other businesses offset lower wholesale sales at Jewellery Maisons and Specialist Watchmakers amid ongoing Covid-related restrictions in China.
