Cartier and Van Cleef & Arpels help Richemont buck the luxury downturn

详细摘要

The Swiss luxury group reported stronger-than-expected profits as its jewellery maisons continued to grow and its specialist watchmakers showed signs of recovery.

The Swiss luxury group reported stronger-than-expected profits as its jewellery maisons continued to grow and its specialist watchmakers showed signs of recovery.

Richemont said strong demand for its jewellery and a recovery in watch sales helped profits jump more than a third as the Swiss luxury group continued to defy a prolonged downturn in the sector.

The owner of Cartier and Van Cleef & Arpels said net profit for the six months to the end of September rose 39 per cent to €2.5 billion (US$2.76 billion; S$3.55 billion), beating expectations. Sales rose 17 per cent organically to €12.3 billion.

The results underscore how Richemont, along with a handful of luxury rivals including Burberry, has managed to outperform in a sector that has been hit by weaker Chinese demand and instability in the Middle East, with a pullback in spending by aspirational shoppers.

Jewellery has been particularly resilient, as wealthy consumers continue to spend on high-end pieces even as demand for luxury handbags and fashion has faltered.

Richemont’s jewellery businesses, including Cartier, Van Cleef & Arpels and Buccellati, remained the main engine of growth, with sales rising 19 per cent organically to €9.1 billion.

“We see an overall very positive trend for jewellery brands,” said Richemont’s chair Johann Rupert.

Analysts at RBC said the results were “reassuring in a difficult luxury operating environment”, but noted that jewellery sales growth in the second quarter was slightly below expectations.

“Solid margin delivery was tempered by early signs of jewellery growth normalisation,” said Thomas Chauvet, an analyst at Citi.

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