Richemont acknowledged the deceleration in the luxury market as the proprietor of Cartier jewelry disclosed a 1% decline in its fourth-quarter sales.
The corporation, which additionally possesses prestigious Swiss watch labels like Piaget and Jaeger-LeCoultre, noted a decrease in sales to 4.80 billion euros ($5.21 billion) for the three months ending in March.
In terms of constant currencies, sales saw a 2% uptick, marking a deceleration from the 8% growth rate recorded in the preceding quarter, spanning the three months ending in December.
However, the fourth-quarter figure slightly surpassed the consensus forecast of 4.78 billion euros mentioned by RBC.
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Throughout the entire year until March’s conclusion, Richemont observed a 3% increase in sales, amounting to 20.62 billion euros. However, the full-year net profit for shareholders, totaling 2.36 billion euros, fell short of the consensus of 3.09 billion euros compiled by Visible Alpha.
In a statement, Chairman Johann Rupert noted that Richemont maintained a robust underlying performance, navigating through adverse foreign exchange fluctuations, challenging comparisons, and persistent macroeconomic and geopolitical uncertainties.
In a separate announcement, the company revealed the elevation of Nicolas Bos, the Chief Executive Officer of Van Cleef & Arpels, to the position of CEO of the entire group.
Richemont stated that Jerome Lambert, the current CEO who has been in his role since 2018, will transition to the role of Chief Operating Officer. He will report to Bos, who will assume his new position on June 1st.
The performance solidified a declining trend in the luxury sector, impacted by subdued Chinese demand and comparisons to the previous year, when the relaxation of COVID-19 restrictions in China greatly boosted sales.
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On a global scale, consumers have grown increasingly discerning regarding pricey acquisitions amidst rising living expenses.
Updates on sales from various prominent luxury conglomerates have provided scant assurance that there’s a resurgence in Chinese appetite for high-end fashion.
Last month, the French conglomerate LVMH disclosed that its sales decelerated to 3% in the first quarter, attributing the slowdown to escalating prices, which deterred shoppers from splurging thousands of dollars on handbags and other accessories.
