Richemont, the owner of brands like Cartier, Chloe, Van Cleef & Arpels, and Panerai reported higher quarterly revenue as tourists made a comeback in Europe and Japan, where sales increased 19% and 43%, respectively. However, China still needs to pull up its socks.
American holidaymakers took advantage of the stronger Dollar not only to travel to Europe but to spend on high-end Swiss watches, Cartier jewellery, and leather goods. I mean, have you seen those after-market prices for mechanical watches and leather goods?
The mainland Chinese market struggled because their draconian Covid lockdowns were only lifted in December. Sales in the region were down 24%, thanks to shorter boutique hours or temporary closures in some stores.
Overall Richemont sales were up 8% to $5.82 billion for the quarter, year-on-year. The good news is that this number can only go higher as China is back in business. Richemont is already seeing increased foot traffic ahead of the Lunar New Year holidays.