Strong demand for jewellery sees sales sparkle at Richemont

(Sharecast News) - Switzerland's Richemont posted a jump in quarterly sales on Wednesday, despite the geopolitical uncertainty weighing on the global luxury market. The owner of Cartier and Van Cleef & Arpels, among others, said group sales came in at €5.4bn in the three months to 30 June, up 3% or by 6% on a constant currency basis.

The rise was fuelled by Richemont's high-end jewellery division, which saw sales spark 11%. That offset weaker performances at specialist watchmakers, where sales fell 7%, and a 1% drop in fashion and accessories.

Global sales of luxury goods were down 1% in 2024 and are expected to continue falling this year, as escalating geopolitical tensions and US tariffs weigh heavily on the sector. High-end, investment-grade jewellery has been less affected, however.

At Richemont, buoyant demand in Europe, the Americas and the Middle East and Africa helped offset a 13% slide in Japan and flat trading in Asia Pacific.

Sales rose 11% in both Europe and the Middle East and Africa, on a constant currency basis, and by 17% in the Americas.

Richemont said demand in Europe had been driven by strong spending by both locals and tourists, especially in Italy and Germany.

Higher tourist spend also boosted sales in the Middle East, alongside ongoing strength in the United Arab Emirates.

In China, Hong Kong and Macau, however, sales fell 7%. As well as ongoing trade tensions with the US, China is battling a prolonged period of sluggish domestic consumption.

Richemont's brands include watchmakers IWC and Vacheron Constantin, Montblanc and fashion houses Alaia, Chloe and Dunhill.

As at 1030 BST, shares in the firm were up 1%.