2023-07-17 09:18:03
Geneva (awp) – Luxury group Richemont continues to benefit from strong global demand for luxury goods. The turnover of the owner of Cartier increased significantly in the first quarter of its staggered 2023/2024 financial year, which ended at the end of June, thanks in particular to the lifting of anti-Covid health measures in China.
During the period under review, revenues amounted to 5.32 billion euros, an increase of 14% over one year. Excluding currency effects, organic growth was 19%, the company said in a statement on Monday.
“As expected, growth has decelerated compared to the previous quarter when the increase was 27%,” said an analyst at wealth manager Stifel.
The results are somewhat lower than the consensus of the AWP agency.
The jewelry division, the largest including Cartier and Van Cleef & Arpels, contributed in particular to performance with an increase of 19% to 3.60 billion euros. Richemont’s watchmaking unit, made up of Piaget, IWC, Vacheron Constantin and Panerai in particular, grew by 6% to 1.06 billion euros.
The Asia-Pacific region, which is benefiting from the abolition of health measures linked to Covid-19 in China, was illustrated by a jump of 32%. Excluding currency effects, the advance was 40%.
“In mainland China, growth was double-digit while in Hong Kong and Macao, a three-digit percentage improvement in turnover was observed, underlines the Genevan.
The United States is slowing down
This recovery made it possible to offset the weakness of the Americas region, which saw its sales fall by 4%. The United States had previously supported in particular the luxury sector as a whole
Europe (+10%), while also slowing down, was driven by local customers and the return of tourists from the United States, the Middle East and more recently China. “Most markets, in particular France, Italy and Switzerland, have generated growing revenues,” said the group.
In addition, the company, of which the South African Johann Rupert is the majority shareholder, points out that the sales generated in the boutiques owned by its various brands have supported the turnover more than those recorded with independent watch retailers. .
“Overall, Richemont has started its 2023/2024 financial year in a solid way, thanks to Asia and tourists in Europe,” notes analyst Rogerio Fujimori of Stifel.
“The gradual recovery of the large Chinese clientele, whether in China or abroad, the pricing power and the appetite of customers for the iconic models of the Richemont group, should allow the Genevan to navigate better than most of its competitors, in an environment marked by a slowdown in demand for luxury goods in the United States,” said the specialist.
Investors did not seem to appreciate the copy made by Richemont. At 11:00 a.m., the stock fell 8.4% to 140.8 Swiss francs in an SMI market down 0.87%. Mixed Chinese economic figures also seemed to weigh on the action, as on the titles of its French competitors such as LVMH (-3.6%) and Hermès (-3.5%). Swatch (-2.1%) held up a little better.
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