Richemont Sees Highest Annual Jewelry Sales

RAPAPORT... Jewelry sales at Richemont grew 49% for the full fiscal year as the global market recovery enabled the luxury retailer to record its highest-ever annual total for the category.Proceeds from the segment rose to EUR 11.08 billion ($11.7 billion) for the 12 months ending March 31, Richemont said last week. The increase was driven by a restart of public events following Covid-19 lockdowns, as well as a strong performance in the US, Europe, Africa and Middle East markets. All of the company's jewelry collections, including Cartier, Van Cleef & Arpels, and Buccellati, realized double-digit growth, it noted. Online sales rose 27% year on year, while operating profit for the division jumped 65% to EUR 3.8 billion ($4.01 billion)."The group...achieved...double-digit growth in jewelry, including high jewelry, which benefited from the resumption of events," the company said. "All iconic collections outperformed. This outstanding performance across all maisons, price points, regions and distribution channels resulted in the jewelry maisons crossing the EUR 11 billion [$11.7 billion] sales threshold for the first time." Growth was strongest in the jewelry maisons' directly operated store network, which contributed over three-quarters of sales.Sales in the watch division climbed 53% to EUR 3.44 billion ($3.63 billion) for the year, with double-digit growth in all of its brands and regions, especially in the US, Richemont noted.Group profit surged 61% to EUR 2.08 billion ($2.2 billion), while sales climbed 46% to EUR 19.18 billion ($20.26 billion), the company's highest revenue ever, it noted. Strong sales in the US, Europe, and the Middle East and Africa outweighed slower growth in mainland China, where a number of stores were temporarily closed due to the health situation.Richemont did not give an outlook for the coming fiscal year, noting the current geopolitical uncertainties."Even if the worst of Covid-19 is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years," the company noted. "Richemont's...cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the group is well positioned to benefit from any strength in consumer demand. We will work to maintain the necessary agility and flexibility to manage global uncertainties."Image: A Van Cleef & Arpels store in Paris. (Shutterstock)