Richemont Reports 13% Decline In Watch Sales In Q1

Result seasons brings another disappointing blow as luxury group Richemont released its Q1 report for the first quarter ended 30^th June 2024. In its report, the Specialists Watchmakers division reported a bleak decline of 13% owing to lower sales in Europe and Asia Pacific in particular. Japan stood as a notable exception however, it failed to offset the decreased sales reported by Europe and Asia particularly in China, Hong Kong and Macau combined. The report also noted the resilience of premium brands like Vacheron Constantin as well as A. Lange & Söhne. 

Overall, the Group saw a 1% increase in sales at constant exchange rates totaling €5.3bn despite an uncertain macroeconomics and geopolitical environment. All regions reported growth except for Asia Pacific where sales contracted by 18% as higher sales in South Korea and Malaysia only partially mitigated a 27% decline in China, Hong Kong and Macau combined. Europe saw a 5% increase owing to local demand and strong tourist purchases. The Americas reported a 10% increase in sales reflecting sustained domestic demand across all distribution channels. The strongest regional sales were reported by Japan clocking an impressive 59% favoured by a weakened yen. The Group’s Jewellery Maisons namely Buccellati, Cartier and Van Cleef & Arpels  delivered a 4% sales growth against demanding comparatives.