Latest news with #Jean-PhilippeBertschy
Business Mayor
16-05-2025
- Business
- Business Mayor
Cartier owner Richemont sales up 7% as jewellery shines
Representative Image Cartier owner Richemont reported a slightly better-than-expected 7 per cent rise in quarterly sales on Friday as brisk luxury jewellery business in the United States partly offset weaker demand for watches in Asia. The Swiss-based company, which also owns jewellery brand Van Cleef & Arpels and watch label Piaget, said sales in its fourth quarter to end-March rose to 5.17 billion euros (USD 5.80 billion), a 7 per cent rise in constant currencies. That is slightly more than the 6 per cent expected, according to a Visible Alpha consensus cited by HSBC, and slightly slower than the 10 per cent growth rate in the third quarter. The jewellery division posted an 11 per cent rise in sales over the quarter, mitigating a decline, also of 11%, from the watches division, whose Chinese sales have been hit as the country's property crisis shrank the appetite for luxury purchases. Luxury groups started the year with hopes that robust demand in the United States would lift the sector out of its biggest slump in years, but from mid-February, signs emerged of a weakening U.S. economy and tariff announcements in April brought more uncertainty. Richemont, which caters to extremely wealthy clientele, is viewed by analysts as more resilient to a downturn than other luxury groups that rely more on fashion sales. 'Richemont continued to gain significant market share in jewellery,' Vontobel analyst Jean-Philippe Bertschy said, noting the division accounted for 54 per cent of sales, compared to 36 per cent in 2019. Read More Bestseller India appoints Sumit Dhingra as country director Bertschy also flagged what he said was spectacular growth and profit, especially when compared with competitor LVMH , which owns jewellery labels Bulgari and Tiffany, although he said Richemont was 'not impervious' to the current volatile environment. Richemont shares are up 11 per cent since the start of the year, while shares of Hermes, which also caters to ultra wealthy shoppers, are up 14%. LVMH and Gucci-owner Kering are down 20 per cent and 25 per cent respectively. Fears of a global recession have prompted downward revisions in estimates. Consultancy Bain said on Wednesday that it had lowered its annual sales forecast for global sales of luxury goods to a likely 2 per cent to 5 per cent drop, following the sector's 1 per cent decline in 2024.
Business of Fashion
16-05-2025
- Business
- Business of Fashion
Richemont Sales Jump on Strong Demand for Cartier
Richemont SA posted a rise in full-year sales as the continued popularity of its Cartier brand made the Swiss group more resilient than rivals like LVMH in a softening luxury-goods market. Sales in the year ended March at Richemont's jewellery unit, which also includes Van Cleef & Arpels, rose 8 percent at constant exchange rates, the company said in a statement Friday. Analysts were expecting a gain of 7.54 percent. In the most-recent quarter, the division's revenue soared 11 percent. Shares rose as much as 5.5 percent in early trading in Switzerland. As of Thursday, they had gained about 15 percent this year compared with a 17 percent drop for LVMH. Richemont has managed to withstand the downturn in demand for high-end goods better than peers as jewelry, its biggest category, enjoys an enduring appeal with consumers even in times of uncertainty. French rival LVMH Moët Hennessy Louis Vuitton SE, which owns jewellery labels such as Bulgari and Tiffany, reported disappointing results in its most recent quarter amid weak demand for its Christian Dior bags. The luxury market has been struggling to emerge from a period of sluggish growth caused in part by Chinese shoppers reining in costly purchases. The industry's outlook has grown even gloomier since US President Donald Trump last month began to impose tariffs on imports across industries and countries. Still, Richemont, whose jewellery division generates about 72 percent of total group sales, had double-digit gains in revenue across nearly all of its markets in the most-recent quarter. Fourth-quarter group sales rose 16 percent in the Americas, 13 percent in Europe and 22 percent in Japan. While sales in the region that includes China fell 7 percent, the decline was nearly half the full year's drop. 'Richemont continued to gain significant market share in jewellery,' Jean-Philippe Bertschy, an analyst with Vontobel Equity Research, wrote in a note. 'Growth and profit are spectacular, especially when comparing to key competitor LVMH.' Still, the analyst warned that 'the company is not impervious to the current volatile environment.' Richemont is looking at various options, including raising prices, to mitigate tariff pain and significant currency effects, Chairman Johann Rupert said on a call with journalists. Richemont increased prices at its Cartier and Van Cleef & Arpels brands following Trump's tariff hikes, according to Jefferies. The company has also had to contend with higher gold prices. Gold, considered a safe haven, has risen more than 20 percent this year amid geopolitical tensions. 'This sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on our profitability,' Richemont said in the statement. Meanwhile, Rupert said he remains optimistic on China. Chinese consumers are still scarred by the draconian lockdowns during the pandemic, he said. 'But it's a matter of time before they feel relaxed again, they have a lot of savings,' he added. 'I expect that when consumers get a bit more confident then things will return to normal.' For the full year, the company reported operating profit of €4.47 billion ($4.48 billion), below the €4.55 billion estimated by analysts. By Angelina Rascouet Learn more: Explainer: How Trump's Tariffs Threaten Luxury Fashion The Trump administration's radical changes to US trade policy won't push retail prices up enough to directly dampen sales, but the effects on the global economy and consumer sentiment could seriously dent an industry still struggling to bounce back from a sharp downturn in demand.
Business Recorder
16-05-2025
- Business
- Business Recorder
Cartier owner Richemont beats expectations as jewellery shines
PARIS: Cartier owner Richemont beat expectations on Friday with a 7% rise in quarterly sales as wealthy shoppers continued to splash out on jewellery, helping the group outperform rivals in the luxury downturn. Richemont, which also owns jewellery brand Van Cleef & Arpels and watchmaker Piaget, said its jewellery sales jumped 11% in its fourth quarter to the end of March, from a year earlier. That offset an 11% decline in its watches division, where Chinese sales have been hit as the country's property crisis shrank the appetite for luxury purchases. Swiss-based Richemont's total sales for the quarter amounted to 5.17 billion euros ($5.80 billion), a 7% rise in constant currencies, beating a 6% rise forecast in a Visible Alpha consensus cited by HSBC. Strong jewellery sales were 'more than enough' to offset weakness in watches, said JPMorgan, adding it showed Richemont has 'truly shifted towards the higher quality, more profitable and less cyclical part of the business.' Richemont shares rose 5% on Friday morning. The group, which caters to an extremely wealthy clientele, is viewed by analysts as more resilient to a downturn than other luxury groups that rely more on fashion sales. 'Richemont continued to gain significant market share in jewellery,' Vontobel analyst Jean-Philippe Bertschy said, noting the division accounted for 54% of sales, compared to 36% in 2019. Bertschy also flagged what he said was spectacular growth and profit, especially when compared with competitor LVMH which owns jewellery labels Bulgari and Tiffany, although he said Richemont was 'not impervious' to the current volatile environment. The logo of luxury goods company Richemont seen at its headquarters in Bellevue near Geneva Luxury groups started the year with hopes that robust demand in the United States would lift the sector out of its biggest slump in years, but from mid-February, signs emerged of a weakening U.S. economy and tariff announcements in April brought more uncertainty. Richemont shares have now gained 18% since the start of the year, while shares of Hermes which also caters to ultra wealthy shoppers, are up 14%. LVMH and Gucci-owner Kering are down 20% and 25% respectively. Price hikes Richemont executives, who were more cautious than peers in raising prices during the post-pandemic surge in demand, said they were closely watching tariffs in the United States, and will consider 'all different options' to mitigate the impact while sticking to a strategy of keeping prices globally at the same level. 'We will adjust,' Richemont Chairman Johann Rupert said in a call with journalists. Cartier, which cites exchange rate movements as a key reason for price hikes, already raised prices in March. U.S. tariffs could include a 20% charge on European fashion and 31% for Swiss-produced watches if fully applied, but in April U.S. President Donald Trump paused most of his tariffs for 90 days, setting a general 10% duty rate instead. Richemont's peer Hermes has said it is passing the full amount of tariffs to customers in the United States. Fears of a global recession have prompted downward revisions in estimates with consultancy Bain lowering its annual sales forecast for luxury goods to a likely 2% to 5% drop, following the sector's 1% decline in 2024.
RTÉ News
16-05-2025
- Business
- RTÉ News
Cartier owner Richemont sales up 7% as jewellery shines
Cartier owner Richemont has today reported a slightly better-than-expected 7% rise in quarterly sales as brisk luxury jewellery business in the US partly offset weaker demand for watches in Asia. The Swiss-based company, which also owns jewellery brand Van Cleef & Arpels and watch label Piaget, said sales in its fourth quarter to end-March rose to €5.17 billion, a 7% rise in constant currencies. That is slightly more than the 6% expected, according to a Visible Alpha consensus cited by HSBC, and slightly slower than the 10% growth rate in the third quarter. The jewellery division posted an 11% rise in sales over the quarter, mitigating a decline, also of 11%, from the watches division, whose Chinese sales have been hit as the country's property crisis shrank the appetite for luxury purchases. Luxury groups started the year with hopes that robust demand in the US would lift the sector out of its biggest slump in years, but from mid-February, signs emerged of a weakening US economy and tariff announcements in April brought more uncertainty. Richemont, which caters to extremely wealthy clientele, is viewed by analysts as more resilient to a downturn than other luxury groups that rely more on fashion sales. "Richemont continued to gain significant market share in jewellery," Vontobel analyst Jean-Philippe Bertschy said, noting the division accounted for 54% of sales, compared to 36% in 2019. Bertschy also flagged what he said was spectacular growth and profit, especially when compared with competitor LVMH, which owns jewellery labels Bulgari and Tiffany, although he said Richemont was "not impervious" to the current volatile environment. Richemont shares are up 11% since the start of the year, while shares of Hermes, which also caters to ultra wealthy shoppers, are up 14%. LVMH and Gucci-owner Kering are down 20% and 25% respectively. Fears of a global recession have prompted downward revisions in estimates. Consultancy Bain said this week that it had lowered its annual sales forecast for global sales of luxury goods to a likely 2% to 5% drop, following the sector's 1% decline in 2024.
New Straits Times
16-05-2025
- Business
- New Straits Times
Cartier owner Richemont sales up 7pct as jewellery shines
PARIS: Cartier owner Richemont reported a slightly better-than-expected 7 per cent rise in quarterly sales on Friday as brisk luxury jewellery business in the United States partly offset weaker demand for watches in Asia. The Swiss-based company, which also owns jewellery brand Van Cleef & Arpels and watch label Piaget, said sales in its fourth quarter to end-March rose to 5.17 billion euros (US$5.80 billion), a 7 per cent rise in constant currencies. That is slightly more than the 6 per cent expected, according to a Visible Alpha consensus cited by HSBC, and slightly slower than the 10 per cent growth rate in the third quarter. The jewellery division posted an 11 per cent rise in sales over the quarter, mitigating a decline, also of 11 per cent, from the watches division, whose Chinese sales have been hit as the country's property crisis shrank the appetite for luxury purchases. Luxury groups started the year with hopes that robust demand in the United States would lift the sector out of its biggest slump in years, but from mid-February, signs emerged of a weakening U.S. economy and tariff announcements in April brought more uncertainty. Richemont, which caters to extremely wealthy clientele, is viewed by analysts as more resilient to a downturn than other luxury groups that rely more on fashion sales. "Richemont continued to gain significant market share in jewellery," Vontobel analyst Jean-Philippe Bertschy said, noting the division accounted for 54 per cent of sales, compared to 36 per cent in 2019. Bertschy also flagged what he said was spectacular growth and profit, especially when compared with competitor LVMH , which owns jewellery labels Bulgari and Tiffany, although he said Richemont was "not impervious" to the current volatile environment. Richemont shares are up 11 per cent since the start of the year, while shares of Hermes, which also caters to ultra wealthy shoppers, are up 14 per cent. LVMH and Gucci-owner Kering are down 20 per cent and 25 per cent respectively. Fears of a global recession have prompted downward revisions in estimates. Consultancy Bain said on Wednesday that it had lowered its annual sales forecast for global sales of luxury goods to a likely 2 per cent to 5 per cent drop, following the sector's 1 per cent decline in 2024.
