Robust Jewelry Sales Boost Richemont

RAPAPORT... Richemont's jewelry sales increased 9% in the third fiscal quarter as strong growth in Europe, the US and China offset weakness in Hong Kong.Jewelry proceeds from Cartier, Van Cleef & Arpels and Buccellati rose to EUR 2.16 billion ($2.40 billion) in the three months ending December 31, Richemont reported last week. The results were the first to include Buccellati following Richemont's acquisition of the Italian brand in September 2019. At constant exchange rates, jewelry sales were up 6%."Sales progression at jewelry maisons was broad-based, driven by jewelry and watches across collections," the company noted. "The performance of Cartier, Van Cleef & Arpels and Buccellati was particularly noteworthy given the negative impact of Hong Kong."Sales at its watchmaker brands, including Piaget and Vacheron Constantin, grew 4% year on year to EUR 818 million ($907.2 million). Group sales for the third quarter rose 6% to EUR 4.16 billion ($4.61 billion). Asia-Pacific sales rose 2% amid double-digit growth in mainland China and Korea. The strong performance in those markets outweighed "a severe sales contraction" in Hong Kong, as escalating protests continue to plague consumer spending and cause a slowdown in tourist visits to the municipality.Sales in Europe rose, benefiting from a strong performance in most markets, as well as a favorable comparison over the same period last year, when growth was hurt by demonstrations in France that negatively impacted tourism and forced stores to shut. Sales in the Americas also grew, led by a good performance in the US that compensated for declines in other markets, Richemont explained. Revenue in the Middle East and Africa went up, while Japan lost ground.Jewelry sales for the nine-month period from April to December increased 8% to EUR 5.90 billion ($6.54 billion), while group sales climbed 8% to EUR 11.55 billion ($12.81 billion). Richemont's stock rose 5% Friday following the announcement.Image: A Cartier store in Hong Kong. (Rityaecinos)