Sales growth at the UK subsidiaries of Cartier and the wider Richemont Group stalled in the year to March 31.
Cartier, which files accounts separately to its parent company, saw turnover flat at £163 million while Richemont UK Ltd, which overseas the retail operations and wholesale business of brands including IWC, Jaeger-LeCoultre and Montblanc, reported a 4% rise in sales to £148 million.
Operating profit at Cartier fell 19% to £12.5 million while Richemont’s dropped 23% to £8.9 million.
Cartier said in a note accompanying its accounts that the cost of refurbishments increased costs. The brand completed a major upgrade of its space in Harrods during the financial year and its Bond Street, London, flagship was also shuttered for much of the period.
Swiss investment bank Vontobel says that around 28% of Cartier’s global sales are from watches, with the remainder from jewellery and accessories. The same percentage breakdown would put Cartier’s watch sales in the UK at around £46 million.
Richemont said it considered its financial year to be “satisfactory”.
In a note about future risks to the business, it said that, “The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent retailers, employee retention and product availability.”