18 percent sales decline in Asia Pacific impacts Richemont's Q1

At constant exchange rates, Richemont’s sales in the first quarter rose by 1 percent to 5.3 billion euros, after growing by 19 percent in the prior-year period.

The company said that the results demonstrated the group’s resilience in a continuing uncertain macroeconomic and geopolitical environment.

Richemont reports sales growth in all regions except Asia Pacific

The company added that all regions delivered growth except for Asia Pacific where sales contracted by 18 percent to 1,809 million euros, as higher sales in South Korea and Malaysia only partially mitigated a 27 percent decline in China, Hong Kong and Macau combined.

The decline reflected both the low level of consumer confidence and the strong comparatives ranging from double-digit growth in the mainland to triple digits in Hong Kong and Macau over the prior-year period.

In Europe, sales increased by 5 percent to 1,171 million euros, driven by resilient local demand and stronger tourist purchases. In the Americas, the 10 percent sales progression to 1,215 million euros reflected sustained domestic demand across all distribution channels.

The strongest regional sales growth was once again generated in Japan, at 59 percent to 603 million euros fuelled by domestic demand and tourist spending from Chinese, South Korean, South-East Asian and American clients, favoured by a weakened yen. Sales in the Middle East & Africa rose by 8 percent to 470 million euros, benefitting from growing domestic and tourist spending in the UAE and Saudi Arabia.

Decline in wholesale at Richemont offset by retail and online growth

The company further said that sales growth in the retail and online retail channels offset a sales decline in the wholesale channel. Retail sales, which accounted for 69 percent of group sales, increased by 2 percent to 3,631 million euros, driven largely by mid-single digit growth at the jewellery maisons.

Online retail sales rose by 6 percent to 315 million euros, sustained by growth at Watchfinder as well as the jewellery and fashion & accessories maisons. The 5 percent sales decline to 1,322 million euros in the wholesale channel primarily reflected weaker performance in Asia Pacific.

The group’s three jewellery maisons – Buccellati, Cartier and Van Cleef & Arpels – delivered a 4 percent sales growth supported by both jewellery and watches. Sales at the Specialist Watchmakers declined by 13 percent as Japan’s noteworthy performance only partially offset lower sales in Europe and Asia Pacific, particularly in China, Hong Kong and Macau combined. The group’s other business area generated a 6 percent sales increase, underpinned by a double-digit progression at Watchfinder and a 4 percent growth at the fashion & accessories maisons, which included Gianvito Rossi, consolidated since 1 February 2024.

Yoox Net-A-Porter (YNAP), presented as ‘discontinued operations’, posted a 15 percent sales reduction, both at constant and actual exchange rates.