Americas and jewellery boost Richemont sales as pandemic hit wanes
Cartier maker Richemont (CFR.S) said on Friday a strong performance from its jewellery brands, particularly in the Americas, helped its sales more than double in the three months to June 30 as the pandemic’s impact waned.
Sales of luxury goods have recovered this year from the pandemic-related downturn with Richemont benefiting more than others thanks to its leading position in jewellery, its biggest product category.
Earlier this week, Swatch Group said it returned to profit in the first six months of 2021 as constant currency sales jumped more than 50%. Also on Friday, Britain’s Burberry (BRBY.L) posted like-for-like quarterly sales above pre-pandemic levels. read more
Richemont’s sales at constant currency rose by 129% to 4.397 billion euros ($5.19 billion) in the June quarter versus the year-ago quarter, the world’s second-biggest luxury goods group said in a statement. They were also 22% higher than in the same quarter in 2019.
Jewellery brands and regions Americas, Asia Pacific and Middle East all saw constant currency sales increase by more than 40% versus the 2019 quarter.
Watch brand sales were also up 6%, but Europe was still down 15% versus two years ago hit by the absence tourist shoppers, Richemont said.
“Jewelry will be one of the main growth drivers of the luxury goods sector in the next five years,” Vontobel analyst Jean-Philippe Bertschy said, adding dominant brands would continue to gain market share.
“Richemont is best positioned in jewellery, and seems to regain its shine in watches, outperforming the Swatch Group,” he said.
Citi analyst Thomas Chauvet said the strong performance in Asia outside of Japan and in the United States was a positive read-across for LVMH (LVMH.PA) and Kering (PRTP.PA).
Richemont, which recently acquired Belgian leather goods maker Delvaux, also said the chief executives of Cartier, Van Cleef & Arpels and fashion and accessories would leave the senior executive committee to solely focus on their businesses.
Richemont shares, up more than 40% so far this year, were up 0.5% at 0724 GMT.