Jewelry Industry Blog

Geneva—Swiss luxury group Richemont has reported an 8 percent increase in sales at actual exchange rates to 1.673 billion euros (about $2.438 billion) for the three-month period ended Dec. 31, 2007, compared with 1.552 billion euros (about $2.262 billion) for the same period in 2006. Sales at constant exchange rates increased 14 percent for the three-month period.

Richemont’s overall financial situation didn’t change significantly during the period. Its net-cash position as of Dec. 31 was 1.093 billion euros (about $1.593 billion), an increase of 189 million euros (about $275 million) over its position on Sept. 30, 2007. This increase primarily reflected seasonal net-cash inflows in respect of operations, partly offset by investing activities. During the period, the Group acquired Azzedine Alaia SAS, a Swiss watchcase manufacturer. The strongest sales growth by geographic area during the period was reported in the Asia-Pacific region (21 percent at actual exchange rates) and in Europe (10 percent at actual exchange rates). Sales in the Americas increased 10 percent at constant exchange rates to 327 million euros (about $476 million); however, this increase was offset by exchange-rate effects, resulting in sales at actual exchange rates being in line with the three-month period ended Dec. 31, 2006. Richemont’s jewellery maisons reported underlying sales growth of 7 percent at actual exchange rates for the period. Cartier saw positive growth in the Asia-Pacific region, and Van Cleef and Arpels reported very strong growth in all regions, albeit from a lower base. For the nine-month period ended Dec. 31, sales in this sector increased 8 percent at actual exchange rates to 2.139 billion euros (about $3.117 billion). The Group’s specialist watchmakers also saw solid demand during the period, with an underlying sales growth of 10 percent at actual exchange rates. Piaget, IWC and Panerai performed particularly well. For the nine-month period ended Dec. 31, sales in this sector increased 15 percent at actual exchange rates to 1.333 billion euros (about $1.942 billion).Actual exchange rates for the period were calculated using the average daily closing rates against the euro. In terms of sales at constant exchange rates, average exchange rates for the year ended March 31, 2007, were used to convert local currency sales into euros for the current three-month period, the current nine-month period and comparative figures.