CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
FinancialsSep 15, 2016
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.
The Piaget Polo S Chronograph in blue ($12,400) is part of the brand’s new “entry-level” Polo S series introduced at an event held earlier this year in New York. Piaget’s parent company Richemont is struggling with sliding watch sales around the globe.
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.
Editors' Picks
Sponsored by
More on Financials
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
