Swiss luxury goods company Richemont said it had “substantially exceeded” pre-COVID 2019 sales figures for the third quarter ending December 31, 2021.
The result is a 38 percent increase based on constant exchange rates (36 percent on actual exchange rates). Overall, double-digit sales were seen across all regions and business segments, which included both online and in-store retail channels, according to the business update from the company for the third quarter of 2021.
Returning consumer demand for jewelry and luxury goods as COVID-related lockdowns boosted sales numbers and measures were eased in the fourth quarter of 2021.
Total sales for the quarter were valued at €5.658 billion (A$8.91 billion), which beat industry estimates of €5.08 billion (A$8 billion).
Combined in-store and online retail sales for the third quarter of 2021 saw a very promising 78% increase compared to the same period in 2020 and a 75% increase compared to the pre-COVID 2019 period.
Jewelry sales provided the strongest contribution to growth by division, which recorded a 57% increase based on a two-year difference.
“The dramatic 57% sales growth of jewelry houses, comprising Buccellati, Cartier and Van Cleef & Arpels, was widespread across product lines and price points,” the report said, noting that “sales increased double digits in all regions and on all channels.
The company maintained an upward trend in sales of 32% compared to the same period in 2020, indicating a strong rebound in the impacts of business closures at the height of the COVID pandemic.
The strongest performance was consistently driven by consumer demand in the Americas, which reached 59% based on a two-year difference and was up 55% from 2020.
The quarter also saw European market sales increase by 42% – alongside the Americas – and helped “rebalance the regional sales mix”, shifting focus away from the Asia-Pacific market which held second place in the third quarter. 2020.
Based in Switzerland, Richemont was founded in 1988 and owns luxury brands A. Lange & Söhne, Buccellati, Cartier, Vacheron Constantin and Van Cleef & Arpels, among others.
The company is listed on the SIX Swiss Exchange and the JSE Securities Exchange.
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