In the quarter ended Dec. 31, 2024, luxury giant Richemont reported a 10% increase in sales to 6.2 billion euros. Growth was positive in almost all regions, driven by Europe (+19%) and the Americas (+22%), with the exception of Asia, where sales fell 7%, mainly due to a combined 18% decline in mainland China, Hong Kong, and Macau. The jewelry division, which includes Cartier and Van Cleef & Arpels, grew 14% year over year to 4.5 billion euros, while the fashion division with brands such as Alaïa, Chloé, Peter Millar, and Gianvito Rossi grew 11%.
Richemont’s boom
“All regions experienced double-digit growth except Asia-Pacific led by -18% in China. The Americas, on the other hand, continue to be driven by strong local demand. We consider this an encouraging sign”, emphasized Bernestein analysts Luca Solca. “The appointment of young in-house talent with proven track records in key roles and previous industry experience, such as Louis Ferla and Catherine Rénier, CEOs of Cartier and Van Cleef, respectively, is reassuring and underscores how chairman and controlling shareholder Johann Rupert is paving the way for Richemont’s next decade of growth”, adds Citi Research. More cautious, despite Richemont’s excellent performance, is Jon Cox, analyst at Kepler Cheuvreux. “It’s probably too early to say whether this is a new inflection point for the luxury goods sector, but it’s certainly very encouraging”.
Distribution channels
All distribution channels recorded sales growth. Retail was up 11%, wholesale was up 4%, and online sales were up 17%, again thanks to the jewelry category and the fashion and accessories category. Positive numbers, even considering the fact that the group in early 2024 had not escaped the loss of demand for luxury products in the global market. In the first quarter there had been a 1% year-on-year decline, and in the second quarter a 1% increase. And once again, jewelry was the driver, fueling rumors of a possible Richemont divestment of fashion and accessories-related brands. Only last month Miss Tweed had announced that group CEO Nicolas Bos is allegedly getting ready to sell off precisely the fashion and leather goods brands, above all Montblanc.
Images Chloé and Gianvito Rossi
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