Richemont Reports Q3 Sales Growth Despite Decline in Europe

Swiss luxury goods group Richemont announced an 8 percent increase in Group sales to 5.6 billion euros for the third quarter at constant exchange rates compared to the previous year. This growth extended across various regions, channels, and business segments. However, the company noted a 3 percent decline in sales in Europe, where higher sales to Chinese and domestic customers couldn’t offset reduced tourist spending, particularly from Americas-resident clients.

For the nine-month period, Richemont’s sales increased by 11 percent at constant exchange rates and by 5 percent at actual exchange rates. The Asia Pacific region experienced a notable 13 percent growth, primarily driven by a substantial 25 percent increase in sales in mainland China, Hong Kong, and Macau combined. In the Americas, sales rose by 8 percent to 1,355 million euros, while the Middle East & Africa region recorded a 10 percent increase to 449 million euros, supported by robust local and tourist demand in the UAE and Saudi Arabia.

Sales growth was observed across various distribution channels, except for a 5 percent decrease in online retail channel sales, amounting to 356 million euros. Retail sales increased by 11 percent to 3,942 million euros, with growth observed in all regions except Europe. Wholesale sales were 4 percent higher than the prior year. Richemont’s three Jewellery maisons (Buccellati, Cartier, and Van Cleef & Arpels) collectively achieved a 12 percent increase in sales, driven by robust sales in jewelry and watches. Specialist watchmakers experienced a 3 percent sales increase, while the fashion & accessories maisons, part of the other business area, saw a 1 percent decline compared to the prior year.