Most Richemont Watchmakers Return to Strong Growth
Most of Richemont’s Specialist Watchmakers returned to growth in the six months to September, with sales rising 10% to €1.7 billion at constant currency. Vacheron Constantin, Jaeger-LeCoultre and A. Lange & Söhne led the gains. Growth accelerated from 10% in the first quarter to 12% in the second, supported by double-digit increases in the Americas and Japan, while China remained soft and Asia Pacific stable. Profitability remained modest: the seven watchmakers earned €150 million, an 8.8% margin, compared with €3.2 billion and a 35% margin for Richemont’s Jewellery Maisons. Group sales reached €12.3 billion, up 17% at constant currency, though growth slowed from 20% in the first quarter to 13% in the second and shares fell 6% in early trading. Retail and online sales helped direct-to-client sales reach 78% of the total, while Anton Rupert was appointed non-executive co-deputy chairman as part of succession planning.
Buying Time Analysis: This story matters because most of Richemont’s specialist watchmakers returned to growth, while slowing group sales and low watchmaking margins highlight ongoing challenges for the luxury watch industry.
