Richemont Reports 1% Sales Decline Amid China Weakness

Richemont Group, the parent company of Cartier, reported a 1% decline in sales to EUR 10.1 billion for the six months ending September 30, 2024, with profits down 12% at constant rates. The results were impacted by a significant drop in demand for specialist watches, which fell by 17%, particularly due to weakened consumer confidence in China, where sales decreased by 19%. However, the Jewelry Maisons, including Cartier and Van Cleef & Arpels, showed resilience with a 2% sales increase. Improved performances were noted in the Americas (+10%) and Japan (+32%), offsetting the Asian downturn. Richemont remains cautious about future performance, with Chairman Johann Rupert emphasizing the importance of adapting to changing market conditions. Overall, the luxury industry continues to face challenges, with Richemont's results reflecting broader trends affecting the sector.