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Sales of luxury goods have recovered this year from the pandemic-related downturn and Richemont is benefitting more than others thanks to its leading position in jewellery, its biggest product category.
Peer Swatch Group (SIX:UHR) returned to profit in the first six months of 2021 as sales at constant currencies jumped more than 50%.
Richemont’s sales at constant currency rose by 129% to 4.397 billion euros ($5.19 billion) in the first quarter versus the year-ago quarter, the world’s second-biggest luxury goods group said in a statement. They were also 22% higher than in the same quarter in 2019, before COVID-19 hit.
Richemont, which recently acquired Belgian leather goods maker Delvaux, also updated its governance model. Its senior executive committee will focus on strategic direction, capital allocation and governance, while brand heads will concentrate on developing their brands.
Consequently, the chief executives of Cartier, Van Cleef & Arpels and the head of the fashion and accessories business will no longer be part of the senior executive committee.
Cartier and Van Cleef & Arpels “have reached a size and scale that require the full attention of their leaders and support of the Group” to continue growth, Chairman Johann Rupert said in the statement.
($1 = 0.8467 euros)
