A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Richemont Full-Year Profit Doubles as Jewelry Sales Climb
Sales in the jewelry division, which includes Cartier and Van Cleef & Arpels, climbed 10 percent to nearly $8 billion.
Geneva—Luxury titan Richemont reported double-digit sales growth in the US and China in its annual results, buoyed by a strong performance from the jewelry sector.
Overall sales totaled €13.99 billion ($15.63 billion), a 27 percent increase compared with €11.01 billion ($12.30 billion) a year ago.
Net profit more than doubled to €2.79 billion ($3.12 billion), including €1.38 billion ($1.54 billion) stemming from its recent acquisition of e-tailer Yoox Net-A-Porter Group (YNAP) and pre-owned watch platform Watchfinder.
Sales in its jewelry division, which includes Cartier and Van Cleef & Arpels, were up 10 percent at constant exchange rates to €7.08 billion ($7.91 billion) compared with €6.45 billion ($7.20 billion) last year.
The division’s operating results rose 16 percent to €2.22 billion ($2.48 billion) while its operating margin improved 160 basis points to more than 31 percent.
Richemont CFO Burkhart Grund attributed the strong results to “higher sales, manufacturing efficiency gains, relatively favorable Swiss franc, and good cost control, which more than offset investments in retail and communication.”
Jewelry sales were strong in all regions and in all channels, accounting for 51 percent of group sales, said Grund during the earnings call.
Evergreen collections, including “Love” and “Juste un Clou” by Cartier and “Alhambra” and “Perlée” by Van Cleef & Arpels, were strong performers. New collections, like “Galaxies” by Cartier and “Frivole” by Van Cleef & Arpels, held their own as well.
Sales in its specialist watchmakers division, which includes A. Lange & Söhne and IWC Schaffhausen, were up 10 percent at constant exchange rates to €2.98 billion ($3.33 billion) compared with €2.71 billion ($3.03 billion) a year ago.
Growth was “broad-based across the collections,” said Grund, with the launch of “Santos de Cartier” and “Poetic Complications” by Van Cleef & Arpels performing especially well.
The division’s operating results rose 44 percent to €378 million ($422 million), but its operating margin was 12.7 percent.
Although an improvement from the previous year, analysts expressed concern about the watch division’s weak profitability.
“Profitability still seems to be lagging especially in the specialist watchmaker division,” said Exane BNP Paribas analyst Melania Grippo to Reuters.
“I think, if you look at just the reported numbers, I think that the performance at the specialist watchmakers is underappreciated,” said Grund during the earnings call, pointing to double-digit growth in the retail network.
Another cause for concern was the operating loss of €264 million ($295
YNAP reported double-digit growth across all regions while Watchfinder’s sales saw single-digit growth, due in part to “persisting uncertainty around Brexit” and the temporary closure of its London Royal Exchange flagship store for renovation.
Though online distributors saw an increase in sales, the division was only “slightly contributive” on an EBITDA basis, said Grund.
By region, sales in the Americas climbed 40 percent to €2.55 billion ($2.85 billion) while sales in Europe were up 37 percent to €4.12 billion ($4.60 billion).
The company attributed the strong growth in the regions in part to the acquisition of YNAP, which has a strong sales base in the U.S. and Europe.
Sales in Japan rose 16 percent to €1.15 billion ($1.28 billion) while sales in the Middle East and Africa rose 8 percent to €929 million ($1.03 billion).
Sales in Asia Pacific, the company’s largest region, rose 20 percent to €5.24 billion ($5.85 billion) with sales in mainland China leading the charge. The company opened 20 internal and 19 franchise stores in the region this year.
Looking for a stronger foothold in the Chinese luxury market, Richemont announced a joint venture with Chinese e-commerce giant Alibaba last October, outlining plans for launching two mobile apps for YNAP’s Net-A-Porter and Mr Porter.
Richemont CEO Jérôme Lambert said on the earnings call that the company’s joint venture is progressing “very well” and a CEO search is underway, but he did not give a timeline for when the apps will be up and running.
The Latest
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.