Richemont Reports Stable Sales for First Half of 2024

Swiss luxury conglomerate Richemont Group has released its financial results for the six-month period ending September 30, 2024. The report highlights a modest decline in overall sales, alongside a challenging environment for the watch segment.

Total group sales reached €10.1 billion, reflecting a slight 1% decrease at actual exchange rates. Net profit stood at €2.2 billion, marking a drop of 12% at constant exchange rates and 17% at actual exchange rates. This relative stability in sales was largely driven by Richemont’s jewellery maisons, notably Cartier and Van Cleef & Arpels, which saw a 2% increase in sales at actual exchange rates, demonstrating resilience amid a turbulent luxury market.

A Challenging Year for Watches

Richemont’s watch division saw sales fall to €1.7 billion, representing a significant 17% decline at actual exchange rates. This drop reflects broader challenges facing the watch industry. Data from the Federation of the Swiss Watch Industry (FH) reveals that Swiss watch exports fell by 2.7% in the first nine months of 2024. Richemont’s competitor, LVMH, also reported a 5% decrease in jewellery and watch sales for the same period, underscoring an industry-wide trend.

Regional Performance

From a regional perspective, Richemont experienced contrasting results. The Asia-Pacific region, a major market for Richemont, reported an 18% drop in sales, driven by decreased consumer confidence in China. However, this was partially offset by strong growth in Japan (+42%), as well as gains in the Americas (+11%) and Europe (+5%).

Richemont’s first-half performance underscores the adaptability of its jewellery maisons, even as the watch segment and Asia-Pacific market face headwinds.