The jewellery divisions or ‘maisons’ of Swiss-based luxury group Richemont notched up 5 percent growth in a year-on-year comparison at actual exchange rates, to record €1.83 billion ($2.23 billion) in sales for the October-December 2017 quarter. At constant exchange rates, the jewellery brands grew 11 percent in a year-on-year comparison.
The group’s specialty watch brands, however, saw a 4 percent sales decline at actual exchange rates to €781 million ($953) for the period. At constant exchange rates, however, the watch brands registered a 1 percent growth.
Overall, the strong performance of the jewellery brands led the whole group to a 1 percent increase for the period with total sales of €3.12 billion ($3.81 billion).
Richemont owns the Cartier, Van Cleef & Arpels and Giampiero Bodino jewellery brands, as well as the A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin watch brands. It also owns the Ralph Lauren Watch and Jewelry joint venture.
In Europe, the strength of the euro and challenging comparatives in the United Kingdom weighed on sales, which declined by 1 percent. Double digit growth in Asia Pacific was driven by mainland China, Korea, Hong Kong and Macau. Good performance by the jewellery brands spearheaded and 8 percent growth in the Americas.
Sales increased 5 percent in sales in Japan, supported by strong growth from the watch brands and a favourable currency environment. Sales in the Middle East and Africa rose by 11 percent, benefitting from favourable currencies, the internalisation of external points of sales and the anticipated introduction of a value added tax in the UAE.
Retail sales maintained strong momentum, recording double digit growth of 13 percent, underpinned by solid performances from the jewellery and watch brands.