Resilient first quarter sales ended 30 June 2024, for the Richemont group

However, the 1% fall in sales should be viewed in the light of the Richemont group's financial year to date, since excluding the effect of exchange rates, results would correspond to +1% in the first quarter, calculated over April, May and June. Analysts were expecting sales to increase by +2%, so the results are barely below expectations. First-quarter sales came to €5.3 billion.

In the official press release, Richemont highlights the difficulties of the Chinese market: the Asia-Pacific region proved to be a real drag, with an overall decline (excluding Japan) of -19%. More specifically, the zone comprising China, Hong Kong and Macao recorded a decline of -27%, while Malaysia and South Korea posted positive results. In the same period a year ago, Richemont posted a +19% increase in sales.

Richemont's jewellery sector recorded single-digit growth of +4% at constant exchange rates, as did the Group's "Other" sector (which includes the Group's fashion and accessories houses), with growth of +6% at constant exchange rates, offsetting the decline in sales of the watchmaking houses, which fell by -13% at constant exchange rates, affected by heavy exposure to Asia-Pacific. The press release nevertheless notes "the resilience of Vacheron Constantin and A. Lange & Söhne".

Compared to other luxury majors, the Swiss group is showing a relative stability in these troubled times for the sector as a whole. The press release also emphasises the group's strength in a "macroeconomic and geopolitical environment that remains uncertain". This stability seems to be reassuring the markets, after the mixed performances of other luxury companies such as Burberry had a negative impact on the opening of the stock markets. The happy exception in a sluggish Asian market is Japan. The weak yen is stimulating purchases by foreign travellers, especially from China. In fact, sales in Japan rose by 59%.

The American market also posted growth of +10% across a range of distribution channels. This is a fairly positive sign: the crisis is beginning to fade across the Atlantic. Europe, meanwhile, is stabilising, with an increase of +5%. Optimism seems to be tentatively returning.