LONDON – Cartier’s parent company, Compagnie Financière Richemont, reported a strong first half despite a turbulent backdrop in the luxury goods industry, with sales down 1% to €10.1 billion and profits mainly from Eux Net-a-Porter. The sale to Myteresa reduced it to 457 million. .
This decline was due to continued weakness in demand in the Asia-Pacific region, where sales decreased by 19%, primarily in China. In contrast, the Americas and Japan continued to grow, at 10% and 32%, respectively, over the six-month period.
Sales of jewellery, Richemont’s strongest category, rose 2%, but sales of specialty watches fell 17%, depressed mainly by China’s economic slowdown.
Richemont said the decline in demand for watches “highlights the need for discipline and vigilance against overproduction and highlights the importance of adapting to changing market conditions, which will ultimately lead to higher prices for products.” It will help maintain its popularity.”
Sales at Richemont’s “other” division, which includes fashion and accessories houses, rose 4%. Fashion and accessories rose 2%, led by the Alaia and Peter Miller brands.
Overall, the other business areas recorded an operating loss of 52 million euros, of which 23 million euros was attributable to the fashion and accessories division.
Operating profit for the same period decreased by 17% to 2.21 billion euros. Profit from continuing operations decreased to 1.73 billion euros from 2.16 million euros in the six-month period.
Richemont’s share price was down 5.6% at 120.6 Swiss francs as of 12:02 pm CET.
Richemont Chairman Johann Rupert said the group had “provided sustained resilience in a world where uncertainty is the norm.” We saw strong sales growth in most regions, offsetting continued weak demand in China, but as I expected, the recovery would take longer, especially in our watch specialty Manufacturers are being affected. ”
Rupert said: “What we are seeing in the world today is not unprecedented. This is about having strong leadership with a long-term vision, creating unique and timeless work and Continuing to invest in the Maison’s excellence in marketing, managing our offer with discipline, and a strong balance sheet with an agile structure.”
He added that while he remains cautious amid the uncertainty, he remains “confident in our ability to navigate current and future cycles and deliver long-term, sustainable value to all of our stakeholders.”
