Americas and jewelry enhance Richemont gross sales as pandemic hit wanes By Reuters
© Reuters. FILE PHOTO: High-end jewelry on display in a Cartier store on Place Vendome in Paris, France on July 2, 2019. REUTERS / Regis Duvignau
By Silke Koltrowitz
ZURICH (Reuters) – Cartier maker Richemont said Friday that a strong performance from its jewelry brands, particularly in America, was increasing its sales in the three months to Jan.
Luxury goods sales have recovered from the pandemic-induced downturn this year, with Richemont benefiting more than others thanks to its leadership in jewelry, its largest product category.
Earlier this week, the Swatch Group (SIX 🙂 announced that it had returned to profitability in the first six months of 2021 as sales rose more than 50% at constant exchange rates. Also on Friday, UK company Burberry posted like-for-like quarterly sales above pre-pandemic levels.
Richemont’s currency-neutral sales rose 129% year over year to 4.397 billion euros ($ 5.19 billion) in the June quarter, the world’s second largest luxury goods company said in a statement. They were also 22% higher than in the same quarter of 2019.
Jewelry brands and regions The Americas, Asia-Pacific, and Middle East all saw sales increased more than 40% on a currency-neutral basis compared to the 2019 quarter.
Watch brand sales also rose 6%, but Europe was still down 15% from two years ago, hit by the absence of tourist buyers, Richemont said.
“Jewelry will be one of the most important growth drivers in the luxury goods sector over the next five years,” said Vontobel analyst Jean-Philippe Bertschy. Dominant brands would continue to gain market share.
“Richemont is best positioned in jewelry and appears to be regaining its glamor in watches and surpassing the Swatch Group,” he said.
Citi analyst Thomas Chauvet said the strong performance in Asia outside of Japan and in the United States is a positive analogy for LVMH and Dry (PA :).
Richemont, which recently acquired Belgian leather goods maker Delvaux, also said the directors of Cartier, Van Cleef & Arpels and Mode & Accessoires would be leaving the senior executive committee to focus solely on their businesses.
Richemont stock, which is up more than 40% so far this year, was up 0.5% at 0724 GMT.
($ 1 = 0.8467 euros)
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