Richemont’s jewellery maisons’ sales rise to 24%
Across the group, direct-to-client sales now account for 74% of turnover
Richemont’s three jewellery maisons’ – Buccellati, Cartier and Van Cleef and Arpels have reported 24% increase in sales in FY23, according to its trading update for its first quarter ended 30 June 2023.
According to the report, sales progressed in all channels and regions excluding the Americas where sales were broadly flat.
A similar geographical pattern continued across group sales, with sales to the Americas down by 2% year-on-year.
Sales at the Specialist Watchmakers grew by 10%, benefitting from thriving retail sales, which together with online sales contributed to close to 60% of the business area sales.
The group said that 19% of its sales progression was driven by double-digit increases in almost all regions, including a 40% rebound in Asia Pacific, the “strongest regional performance”.
Favourable prior-year period comparatives, as well as the removal of Covid-related restrictions and the reopening of borders in mainland China, Hong Kong SAR and Macau SAR in January 2023, led to substantial sales increases ranging from double-digit growth in the mainland to triple digits in the latter two locations.
Richemont’s European sales rose by 11% and The Middle East and Africa was up 15% and Japan improved by 14%.
Across the group, direct-to-client sales now account for 74% of turnover.
Richemont said: “All channels posted sales growth, with retail recording the strongest relative channel performance. Retail sales progressed by 24%, driven by increases in all regions and double-digit increases across all business areas, led by the Specialist Watchmakers, closely followed by the jewellery maisons. The strongest performances were recorded in Asia Pacific and the Middle East and Africa regions.
“With the ongoing ‘retailisation’ of our Maisons, retail sales reached 68% of group sales. Online retail sales were 2% higher, reflecting a varied performance among business areas with the Jewellery Maisons posting 14% growth. Sales in the wholesale channel rose by 11% as higher sales at our jewellery maisons and ‘Other’ business area more than offset lower wholesale sales at our Specialist Watchmakers following the strategic conversion of a number of franchise stores into directly operated stores.”
