News

Advanced Search

Asia Recovery Boosts Cartier, Van Cleef

Nov 12, 2017 7:53 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
Richemont saw a sharp rise in jewelry sales in the first fiscal half-year as Asian consumer demand recovered, the luxury group reported Friday.

Revenue from jewelry maisons — which include jewelry and watch sales at Cartier and Van Cleef & Arpels — jumped 15% to $3.69 billion (EUR 3.16 billion) in the six months ending September 30, the Geneva-based company said. Both of those brands recorded “double-digit growth,” with strong performances across both jewelry and watches, it added. Profit from the segment surged 30% to $1.14 billion (EUR 981 million).

Jewelry sales alone increased 12% to $2.55 billion (EUR 2.19 billion), and watch sales — including by the maisons and Richemont’s specialist watchmakers — grew 14% to $2.78 billion (EUR 2.29 billion). 

The improvement owed in part to weak numbers last year, when Cartier and the specialist watchmakers bought back watch inventory from overstocked clients. Almost two thirds of those buybacks occurred in Asia, chief financial officer Burkhart Grund said in an investor conference Friday, transcribed by Seeking Alpha.

Richemont’s Asian sales last year suffered from the “overextension of the gifting business in China,” meaning that when demand slowed, companies to which it had supplied goods found themselves with more inventory than they could sell, Grund explained.

While jewelry and watches are Richemont's largest business units, the company also has leather goods, clothing and writing-instrument divisions.

The group’s total sales increased 10% to $6.54 billion (EUR 5.61 billion), driven by a 23% leap in Asia Pacific to $2.54 billion (EUR 2.18 billion). Sales in the Americas grew 8% to $1.04 billion (EUR 890 million), and in Europe, they climbed 2% to $1.89 billion (EUR 1.62 billion).

Group profit soared 80% to $1.14 billion (EUR 974 million), reflecting the improved sales.

Image: John Wisniewski
Tags: americas, asia, asia pacific, Burkhart Grund, buybacks, Cartier, China, Jewelry, Piaget, Rapaport News, retail, Richemont, Roger Dubuis, Van Cleef & Arpels, watches
Similar Articles
Diamonds for Fantasy story 150Unique Designs to Buy Modi Company Inventory
Jul 15, 2018
Jewelry manufacturer Unique Designs is the top contender to buy the assets of Nirav Modi subsidiary Fantasy,
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.