Latest news with #Richemont
Yahoo
2 days ago
- Business
- Yahoo
Jewelry again leads Richemont to revenue growth while apparel falters
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Dive Brief: Jewelry continues to be a bright spot for Richemont and was a driving force for the company's total revenue increase in Q1, according to an earnings release Wednesday. The company's overall revenue increased 3% to 5.4 billion euros, or about $6.3 billion. Sales at Richemont's jewelery houses, including Cartier and Van Cleef & Arpels, increased 7% year over year, while its specialty watchmaker division fell 10%. However, the Switzerald-based luxury goods company's 'other' category, which includes fashion and accessories brands Chloé, Alaïa and Gianvito Rossi, fell 4%. Dive Insight: Though Richemont is among the first to report in an upcoming slew of luxury earnings, it's likely the company will continue to outperform its peers, said Jelena Sokolova, senior equity analyst at Morningstar Research Services, in a client note. 'Jewelry is one of the fastest-growing, very moaty luxury niches, and Richemont holds the industry's strongest brands — Cartier and Van Cleef & Arpels, which should continue securing its lead,' Sokolova wrote. 'We believe that recently, jewelry sales were boosted by a relatively better value proposition versus leather goods, as jewelry brands were less aggressive with price increases after covid.' Jewelry, which is the group's largest and most profitable division, has been a consistent bright spot for Richemont over the past several quarters, but Wednesday's results also saw a significant sales increase in the Americas region, per Sokolova. Sales in the region grew 10%. This growth has been ahead of its luxury peers for several quarters, Sokolova said, and Richemont has yet to be hit by deceleration in the region. In both Europe and the Middle East and Africa regions, sales grew 11%. In the Asia Pacific region, however, sales decreased 4%. Japan was especially hard hit, with a 13% revenue decrease. Richemont credited the increases across its distribution channels to the jewelry houses. Both retail and online retail revenue increased 3%, while wholesale and royalty income increased 2%. At the end of the quarter, Richemont had a net cash position of 7.4 billion euros, which included the results of the sale of the Yoox Net-A-Porter business to Mytheresa in April. Recommended Reading Chanel names Stephane Blanchard president of US region Sign in to access your portfolio
Fashion Network
3 days ago
- Business
- Fashion Network
Swatch UK results show sector facing tough market
Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market. The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year. Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million. Swatch may have another tough year in 2025 too as it has already said that the increase in employers' National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn't become easier for watch specialists. That's something Richemont 's results showed this week too with the Swiss luxury giant's Specialist Watchmakers segment being its worst performer in the latest year. Looking back at the UK specifically, in the accounts filing Swatch said it's 'maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers'.
Fashion Network
3 days ago
- Business
- Fashion Network
Swatch UK results show sector facing tough market
Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market. The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year. Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million. Swatch may have another tough year in 2025 too as it has already said that the increase in employers' National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn't become easier for watch specialists. That's something Richemont 's results showed this week too with the Swiss luxury giant's Specialist Watchmakers segment being its worst performer in the latest year. Looking back at the UK specifically, in the accounts filing Swatch said it's 'maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers'.
Fashion Network
3 days ago
- Business
- Fashion Network
Swatch UK results show sector facing tough market
Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market. The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year. Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million. Swatch may have another tough year in 2025 too as it has already said that the increase in employers' National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn't become easier for watch specialists. That's something Richemont 's results showed this week too with the Swiss luxury giant's Specialist Watchmakers segment being its worst performer in the latest year. Looking back at the UK specifically, in the accounts filing Swatch said it's 'maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers'.
CNA
3 days ago
- Business
- CNA
Cartier owner Richemont's top brands prove resilient despite economic and geopolitical fears
Swiss luxury group Richemont's top jewellery brands Cartier and Van Cleef & Arpels increased their sales by more than 10 per cent for the third quarter in a row, as wealthy shoppers maintained their appetite for high-end goods despite geopolitical uncertainty. The increase in jewellery sales, which account for more than two-thirds of revenues, offset a decline in Richemont's other divisions. Excluding exchange-rate fluctuations, sales across the entire group rose 6 per cent in the three months to the end of June compared with the same period in 2024, reaching €5.4 billion (US$6.27 billion; S$8.06 billion). Specialist watchmaker sales fell 7 per cent in the quarter while revenues from its fashion and accessories brands were 1 per cent lower. Richemont's top jewellery brands, which also include Buccellati, have proven resilient despite global economic fears triggered by US President Donald Trump's trade policies, conflicts in Ukraine and the Middle East, and a weak Chinese market. Sales were strong across both jewellery and watch lines at these brands, the company said. The company's jewellery houses reported an 11 per cent rise in sales at constant exchange rates in the second quarter, beating consensus analyst estimates compiled by Visible Alpha. 'Richemont has delivered reassuring results, particularly when compared to other luxury players. The company's dominance and robust growth in the jewellery segment remain impressive,' said Jean-Philippe Bertschy, an analyst at Vontobel. There were 'early signs of stabilisation' in Asia and China owing to the strong exposure to watch sales in the region, he added. Revenues in the Americas, Europe and the Middle East rose by between 11 per cent and 17 per cent. Sales in the Asia Pacific region, which is dominated by the Chinese market, were flat at constant exchange rates.
