Richemont has published sharply higher first-half results, according to figures reported by WWD. Over the six months ended September 30, sales reportedly rose 16% to 12.3 billion euros, while operating profit reportedly jumped 33% to 3.1 billion euros. After-tax profit reportedly increased 39% to 2.5 billion euros, despite a difficult macroeconomic environment and gold prices 40% higher than in the corresponding period of the previous year.
Jewellery and watches lead the way
The group's four jewellery houses reportedly saw sales grow 18% at published exchange rates, and 19% at constant rates, to 9.15 billion euros. Richemont notes that classic Cartier Clash, Love and Panthère creations remain as popular as new releases such as the Alhambra collection by Van Cleef & Arpels or the Serenissima line by Buccellati. The specialist watchmaking division reportedly grew 10% at constant rates, to 1.71 billion euros, accelerating to 12% in the second quarter. Chief executive Nicolas Bos describes solid jewellery sales "across the board, with good momentum on the very high end, and also very good traction for the less expensive, more attainable lines", adding that "it's very much a domestic-driven business these days, which we feel is actually much more solid and healthy in the long term".
By region, the Amériques reportedly led growth with 23% expansion, ahead of Japon (18%), Asia-Pacific (17%) and Europe (12%). Tourists reportedly accounted for 15% of group sales. The "other" division, which groups the fashion and accessories houses, reportedly saw sales grow 9% to 1.43 billion euros, with operating losses narrowed to 12 million euros from 42 million euros in the comparable period.
Governance and leadership moves
Founder and chairman Johann Rupert states that "the transition has already taken place and the company is now being run by different people", pointing to "a better system, a better culture, a culture of collegiality". His son Anton Rupert was confirmed as co-vice chairman, non-executive, overseeing strategic product and communications affairs. Asked about his Chinese customers, Johann Rupert notes that they have apps allowing them to compare prices and currencies between boutiques, adding that he wants to "être équitable avec eux". On watchmaking, he judges the recovery "unlikely to be linear in an environment that continues to be challenging for the industry".
Analyst Bernstein Luca Solca calls the performance "excellente" compared with soft-luxury peers, despite jewellery falling short of consensus according to Piral Dadhania (RBC Capital Markets), offset by watches and the "other" division.
Changes ahead
At the same time, Chemena Kamali, creative director of Chloé, is reportedly set to join Saint Laurent to succeed Anthony Vaccarello, according to widely circulated reports. At Delvaux, Yanina Novitskaya, a Cartier veteran, will take over as chief executive next month, succeeding Jean-Marc Loubier. Richemont and American jeweller Signet are also reportedly in talks to join a consortium led by former De Beers Group boss Gareth Penny, aiming to acquire the 85% stake held by Anglo American in the diamond group. Signet declined to comment on any potential transaction.
