The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Richemont Anticipates Sharp Drop in Profit
A “difficult” global environment and having to buy back watches from retailers battered sales and profits in the first five months of the company’s fiscal year.
Geneva--A “difficult” global environment and having to buy back watches from retailers, particularly in Hong Kong and Macau, battered sales and profits for Richemont in the first five months of its fiscal year.
Ahead of its annual general meeting Wednesday in Geneva, the luxury goods conglomerate reported that between April and August, global sales dropped 13 percent year-over-year at constant exchange rates and 14 percent at actual rates.
Excluding the impact of the “exceptional watch returns” from the multi-brand retailers that stock Richemont’s watches--brands such as Baume & Mercier, Jaeger-LeCoultre, Vacheron Constantin and Piaget--sales were down 10 percent on a constant currency basis.
Looking ahead, the company said it expects the challenging retail environment to persist, and forecasts profit for the six-month period ending Sept. 30 to be down about 45 percent year-over-year.
“We are of the view that the current negative environment as a whole is unlikely to reverse course in the short term,” the company said in a statement. “However, we remain convinced of the long-term prospects for luxury goods globally and in particular for watches and jewelry.”
While Richemont turned in negative performances in all regions, the sales drop in the Americas was not as sharp.
Sales in the first five months of the year were down 6 percent in the region, with slow watch sales dragging down what was a positive performance by jewelry (Richemont owns Cartier and Van Cleef & Arpels) and accessories. That is significantly better than the 18 percent drop in Europe and the 25 percent in Japan, Richemont’s worst-performing region.
Richemont’s retail channel, which saw sales decline 6 percent in the period, outperformed its wholesale channel, which experienced a 21 percent drop in sales, and jewelry sales (down 15 percent) outperformed watches (down 18 percent).
The company is set to report its results for the six-month period ended Sept. 30 on Nov. 4.
Richemont’s particularly dim watch results signal more trouble for the struggling Swiss industry, which back in July saw watch giant Swatch Group report an 11 percent drop in sales at constant exchange rates and a 52 percent decline in profit for the first six months of the year.
The Latest
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Despite the rising prices, consumers continue to seek out the precious metal.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Sponsored by the Las Vegas Antique Jewelry and Watch Show
Tobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
Stars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
The branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
The six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
The highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
The “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
The Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
The Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.