Richemont soft luxury returns to profit
Swiss luxury group Richemont has reported a year-on-year sales boost of 63% for the first half (H1) of the year, a figure which also represents a 20% increase on 2019’s comparative, pre-pandemic period.
The company saw triple-digit growth across the Americas, it said, bringing sales figures for the region (around €1.93 billion or $2.2 billion) closer to those of Europe (roughly €2 billion or $2.3 billion) for the six-month period.
All regions achieved double-digit sales increases in H1, with Asia-Pacific contributing the largest share of group sales (42%).
Hard luxury in the form of jewellery (+67% year on year, achieving record half-year sales) and watches (+74%) led the group’s performance.
Soft luxury articles such as leathergoods fall under Richemont’s ‘Other’ umbrella as part of the fashion and accessories category. Group chairman, Johann Rupert, commented that this business area returned to profit with a 72% increase in H1 sales, benefitting from “better trading” overall. (At the end of the previous quarter, the chairman had conceded that this category had suffered from several years of underperformance and, furthermore, had particularly suffered from covid-19-related travel restrictions.)
Specifically, Mr Rupert highlighted how Alaïa, Chloé and Montblanc had enjoyed “renewed impetus” thanks to the relatively recent addition of new creative directors at each house. The latter two brands have moreover “further improved the quality and selectivity of their distribution network,” he added.
The Richemont chair emphasised how “much attention” had been paid to sustainability and singled out Chloé’s achievement of B Corp status last month as an example of this. He also pointed to the group-wide commitment to eliminating the use of polyvinyl chloride (PVC) from all products and packaging by December 2022.
On Delvaux, which the group acquired over the summer, Mr Rupert stated that its integration into the Richemont “family” continues to progress well under new management. He underscored how the purchase of the Belgian leathergoods house will serve to bolster the group’s presence and raise its artisanship capabilities in high-quality leather going forward.
In closing, Mr Rupert said: “We will continue to allocate more resources to sustainability to meet our climate and other sustainability targets, with a particular focus on biodiversity, the environment, education and the preservation of métiers d’art. We will continue to focus on timelessness, love, beauty and sustainability.
"Together, we will craft the future.”
Image: Cartier via Instagram.
