Richemont: +6% sales for the 1st Semester of 2023, despite a decline in watch sales

Intro

Swiss luxury company Richemont Group has released its financial report for the half-year ending September 30, 2023. The company recorded a strong performance, with overall sales increasing. However, the report also highlights a recent slowdown in the market, particularly in the luxury watch sector.

Financial Performance Overview

In this period, Richemont achieved a 6% rise in sales.The total sales and operational profits reached €10.2 billion and €2.7 billion, respectively. Despite these positive numbers, the company observed a slowdown in sales growth, especially in the last quarter.

Detailed Performance Analysis

On one hand, the group's growth was largely driven by its Jewellery Maisons, which include well-known brands like Cartier, Van Cleef & Arpels, and Buccellati. These brands saw a 10% increase in sales.

On the other hand, watchmakers' struggle: The Specialist Watchmakers segment experienced a decrease in sales by 3%. This decline was significant considering the initial 10% sales growth in the first quarter of the financial year. Notably, Vacheron Constantin and A. Lange & Söhne performed positively.

Regional Sales Insights

The public company report indicates growth in sales across most regions and channels. The Asia Pacific region was a strong driver with a 14% increase, whereas the Americas experienced a 4% decrease in sales.

Market challenges and outlook

Richemont started the period with better-than-expected performance. However, challenges like inflation, economic slowdown, and geopolitical tensions dampened sales in the second quarter. Despite these issues, Richemont remains hopeful, anticipating economic stabilization and growth, particularly in China due to stimulus measures.

 

IF YOU WANT TO TAKE A LOOK AT THE FULL REPORTGO TO RICHEMONTS' OFFICIAL WEBSITE OR CLICK HERE.