Richemont has joined its rival luxury conglomerate LVMH in reporting record sales and profits so far in 2022, with results boosted by the relative weakness of European currencies against the soaring US dollar.
Richemont sales for the six months to the end of September jumped by 24% in euros.
Without dollars and dollar-equivalents like Middle Eastern currencies from oil and gas-rich states, flooding into its euro-based accounts, growth would have been 8% lower at 16%.
Sales for the six months came in at €9.7 billion, up from €7.8 billion for the same period in 2021.
Operating profit from continuing operations increased by 26% to €2.7 billion.
Specialist Watchmakers, which excludes Cartier, grew sales by 22%, with all Maisons, regions and distribution channels recording growth.
Richemont says it is witnessing an overall growing interest for high quality watches across generations and three of its brands are approaching annual sales of €1 billion.
The maisons are not named in the financial report, but the three biggest watchmakers, other than Cartier, are IWC, Vacheron Constantin and Jaeger-LeCoultre.
IWC looks certain to join the billionaire club of watch brands, having generated sales of CHF 802 million last year, according to Morgan Stanley estimates. Its Big Pilot watches have become a hot item this year, with several references selling out and generating waiting lists.
Vacheron Constantin, with turnover of CHF 635 million last year according to Morgan Stanley, has further to go to reach one billion, but has had an exceptional year as demand for its Overseas watch spearheaded sales growth.
Sales at Richemont jewellery maisons — Buccellati, Cartier and Van Cleef & Arpels — rose by 24% (16% at constant currency).
The Group’s ‘Other’ business area, which now includes Watchfinder, saw nearly all maisons post 27% sales growth across channels and regions with Chloé, Montblanc and Peter Millar, including G/FORE contributed most to the sales increase.
