Key Highlights:
- Richemont shares rise to 5.7% in Quarter III.
- The sales are at a rise of 32% constant currency.
- The luxury brand has a strong foothold in the American & European markets.
The American and European markets have a strong demand for luxury jewellery and watches leading to the revival of Cartier owner Richemont in the post-pandemic world. Richemont is amongst the second-largest luxury group in the world. It recently recorded $6.41 billion in sales in the third quarter by the end of December.
Richemont’s performance was estimated to be 38% better when compared to the Christmas quarter of 2019—the pre-pandemic quarter.
Richemont & another luxury brand on revival
Luxury goods have witnessed a rise in demand from the audience. Not just Richemont but many other luxury brands like Prada, and Burberry have are also posing strong sales numbers. The luxury smartwatch brand-Swiss has also seen a rise in export levels as compared to the 2019 sales.
Richemont’s fast-growing jewellery brands Cartier, Van Cleef & Arpels and Buccellati, have risen to a 38% increase. On the other hand, watchmaker brands including the Vacheron Constantin brands and IWC have also experienced a 25% rise.
Richemont shared a statement, “The Americas posted the strongest growth – 55% – followed by Europe with 42%. China, which had already recovered from the worst of the pandemic the previous year, only saw 7% growth.”
Richemont strategies for the coming year
Considering the rise, Richemont plans to move away from the wholesale scale and towards the operated stores and online channels. This approach of direct sales to the consumer will further increase the group sales. It has already recorded a 78% increase in group sales while retail sales stand at 19%.
Richemont making the improvements is further going to benefit its stand in the market. Apart from this, Peer LVMH (owner of Bulgari and Tiffany jewellery brands) and Swatch Group will be releasing the full-year sales by the end of January.
