- Sales up 129% year-over-year, up 22% from Q1 2019
- Americas, jewelry brands outperform
- Cartier and Van Cleef Executives to Focus Only on Brands
ZURICH, July 16 (Reuters) – Cartier maker Richemont (CFR.S) said on Friday that a strong performance from its jewelry brands, particularly in the Americas, had helped its sales more than double in the past three month leading up to June 30 as the impact of the pandemic waned.
Sales of luxury goods have picked up this year after the downturn linked to the pandemic, with Richemont profiting more than others thanks to its leadership position in jewelry, its largest product category.
Earlier this week, Swatch Group said it had returned to profit in the first six months of 2021, as sales in constant currencies jumped more than 50%. Also on Friday, Britain’s Burberry (BRBY.L) posted comparable quarterly sales above pre-pandemic levels. Read more
Richemont’s sales at constant exchange rates rose 129% to 4.397 billion euros ($ 5.19 billion) in the June quarter from the previous year quarter, the second group said. world of luxury goods in a statement. They were also 22% higher than in the same quarter in 2019.
The jewelry brands and the Americas, Asia-Pacific and Middle East regions all saw their sales in constant currencies increase by more than 40% compared to the 2019 quarter.
Sales of the watch brand were also up 6%, but Europe was still down 15% from two years ago, affected by the absence of tourist buyers, Richemont said.
“Jewelry will be one of the main growth engines for the luxury goods sector over the next five years,” said Vontobel analyst Jean-Philippe Bertschy, adding that dominant brands would continue to gain market share. .
“Richemont is best positioned in jewelry and seems to regain its luster in watchmaking, surpassing the Swatch Group,” he said.
Citi analyst Thomas Chauvet said the strong performance in Asia outside of Japan and the United States was a positive read for LVMH (LVMH.PA) and Kering (PRTP.PA).
Richemont, who recently acquired Belgian leather goods maker Delvaux, also said the managing directors of Cartier, Van Cleef & Arpels and fashion and accessories would let the board focus only on their business.
Richemont stock, up more than 40% since the start of the year, was up 0.5% as of 07:24 GMT.
($ 1 = € 0.8467)
Reporting by Silke Koltrowitz Editing by Riham Alkousaa and David Evans
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