Richemont achieves double-digit sales growth in the first quarter of 2022

All channels and business areas, as well as most regions, generated sales growth versus the prior year period notwithstanding an uncertain environment, the company said in a press release on the results of the first quarter ended 30 June 2022.
The 12% sales growth delivered in the quarter was driven by strong double-digit increases in Europe, the Americas and Japan. Sales in Europe grew by 42% sustained by robust domestic demand and a return in tourist spending, primarily from American and Middle Eastern clients. Growth was strong across markets, particularly in France where sales increased by triple digits. In Asia Pacific, the strict enforcement of a zero covid policy led to double-digit sales declines in mainland China and Macau SAR (China) and to a single-digit sales reduction in Hong Kong SAR (China). Sales in mainland China were 37% lower for the quarter, although the rate of decline softened to 12% in June when restrictions were progressively eased. The solid momentum across most other Asian markets, notably in Australia, Singapore, South Korea and Thailand, partially mitigated the decline of sales in the region, with sales in Asia Pacific overall contracting by 15%. In the Americas, sales rose by 25% notwithstanding demanding comparatives against the prior year period, driven by strong domestic spending. As a result, for the quarter the US was Richemont’s largest single market, accounting for 22% of Group sales. Japan posted the strongest regional performance with an 83% growth in sales, supported by strong local demand. Sales in the Middle East and Africa increased by 6% on demanding comparatives, reflecting solid domestic and tourist spending, notably in Dubai and Qatar.
All channels recorded sales growth, with retail posting the strongest relative channel performance. Retail sales rose by 18%, driven by double-digit increases across all business areas, and noteworthy performances in Europe, the Americas and Japan. Online retail sales increased by 5%, reflecting muted sales progression at the Group’s Online Distributors and strong growth at our Jewellery Maisons and Specialist Watchmakers. Direct sales to clients for the Group as a whole represented 75% of Group sales. 
Despite the disruption experienced in China, the Jewellery Maisons generated a 12% sales growth benefitting from thriving retail sales and solid jewellery and watch sales at Buccellati, Cartier and Van Cleef & Arpels. Sales progressed in all regions and channels, excluding Asia Pacific and wholesale. The Specialist Watchmakers’ sales increased by 10%, driven by online and offline retail sales, which together contributed to 53% of the business area sales. Growth was achieved in most Maisons and regions with an ongoing outperformance of A. Lange & Söhne, Panerai and Vacheron Constantin. The Group’s Online Distributors recorded a 2% sales progression and continue their shift towards a hybrid business model. 
The Group’s net cash position at 30 June 2022 was € 5.4 billion (2021: € 3.6 billion), reflecting the quarter’s strong trading as well as replenishment of inventories.

Vladimir Malakhov, Rough&Polished