Jewelry now a third of Richemont’s sales

FinancialsNov 08, 2015

Jewelry now a third of Richemont’s sales

The category continues to increase in importance for the luxury goods conglomerate, which saw sales at Cartier, Van Cleef and Giampiero Bodino grow 18 percent in the first half of the year.

Geneva--Richemont reported strong sales growth among its jewelry brands in the first half of the year, noting that jewelry now accounts for one-third of its total sales.

Van Cleef & Arpels, Cartier and Giampiero Bodino posted an 18 percent year-over-year increase in sales to $3.42 billion in the period ended Sept. 30. Sales were strong at the company’s own boutiques, with both jewelry and Cartier and Van Cleef watches selling well. 

Richemont’s luxury watch brands, meanwhile, continued to struggle, hampered by declining demand in the Asia-Pacific region.

Sales for Richemont’s specialist watchmakers rose 8 percent to $1.88 billion in the first half of the year, with favorable exchange rate effects offsetting slower sales. Richemont owns Vacheron Constantin, Baume & Mercier, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, IWC, Piaget and Roger Dubuis.

Total sales for the Geneva-based luxury goods conglomerate rose 15 percent year-over-year to $6.25 million, though that growth totaled only 3 percent at constant exchange rates (when factoring for currency fluctuations.) Profit grew 22 percent.

In a company statement issued Friday, Chairman Johann Rupert called the company’s first-half results “satisfactory” but predicted the rest of the year would be challenging. 

In the month of October, Richemont’s sales declined 1 percent at actual exchange rates and fell 6 percent at constant exchange rates. Jewelry continued to outperform watches, and Richemont continued to see more sales growth at its own boutiques than it does via its wholesale channel.

Rupert said for the second half of the year, the group expects the situation to remain “challenging,” particularly at wholesale.

“Our Maisons (brands) will continue to pursue their differentiated marketing strategies with their planned investments, increasing the ability for each to react to a volatile environment,” he said. 

Among its jewelry brands, the company also is dealing with a management transition just as the holiday season approaches. 

As reported Friday, Cartier CEO Stanislas Quercize has stepped down for personal reasons and will be replaced on Jan. 1 by Cyrille Vigneron. Vigneron now heads LVMH Japan but, before that, spent 25 years working at Richemont, primarily with Cartier. 

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

IndependentsMay 17, 2021
Take a Peek Inside the New Zadok Jewelers Store

The Houston jeweler recently opened a 28,000-square-foot, two-level store.

IndependentsMay 17, 2021
Bill Boyajian Has a New Book Coming Out

“Family Business Succession Planning” covers the dynamics of working in a multigenerational business and prepping for the next generation.

MajorsMay 17, 2021
Pandora’s Head of North America Steps Down

Sid Keswani has left the jewelry company to become president of lifestyle company Centric Brands.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

TechnologyMay 17, 2021
JCK Launches Online B2B Jewelry Marketplace

“Jewelers Source by JCK” will help qualified buyers find new clients and conduct virtual meetings all year round.

Weekly QuizMay 14, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of May 10-14, 2021.
Take the Quiz
MajorsMay 17, 2021
Borsheims Promotes 3 on Sales Management Team

It shows the Nebraska jeweler’s new cross-department emphasis.

Policies & IssuesMay 14, 2021
Petra Reaches $6M Settlement Amid Claims of Human Rights Abuses

A report by a nonprofit documented an alleged seven deaths and 41 assaults on artisanal miners at the Williamson mine in Tanzania.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

AuctionsMay 14, 2021
Phillips’ New Selling Exhibition Celebrates Female Designers

It features pieces from the likes of Solange Azagury-Partridge, Suzanne Belperron, Marina B, and Silvia Furmanovich.