Luxury Conglomerate Sees Double-Digit Sales Surge in Key Markets, Offsetting Challenges for Watchmakers
In a testament to the enduring allure of luxury, Richemont, the Swiss parent company of iconic brands like Cartier, has reported a 4% increase in sales to 21.4 billion euros for the first quarter of 2025. This robust performance was fueled by a surge in jewelry sales, which grew by double digits across all regions except Asia Pacific, where the specialist watch brands faced headwinds.
Despite the overall sales growth, Richemont’s operating profit fell 7% to 4.47 billion euros, weighed down by the challenges faced by its watch brands amidst the slowdown in demand, particularly in China. However, the company’s jewelry division emerged as a shining star, with sales up 8% for the year and accelerating into the double-digits in the final quarter.
Richemont’s chairman, Johann Rupert, attributed the group’s resilience to its focus on “nurturing the maisons’ current and future growth, investing in our distribution network, manufacturing assets and quality craftsmanship.” The company’s “other” division, which encompasses fashion brands, the Watchfinder business, and the watch components group, also saw a 7% increase in sales to 2.79 billion euros, with Alaïa and Peter Millar delivering strong growth.
While Rupert acknowledged the “ongoing global uncertainties” that will require “strong agility and discipline,” he expressed confidence in Richemont’s long-term strategy, which has delivered seven-fold sales growth over the past 25 years. The company’s healthy balance sheet and commitment to investing in its iconic brands are poised to navigate any challenges and continue its trajectory of success.
Cartier
