Jewelry Speeds Ahead at Richemont

RAPAPORT... Jewelry sales at Richemont - the owner of Cartier and VanCleef & Arpels - increased 9% in the past fiscal year, making the division theluxury retailer's largest product group by revenue. Proceeds from the category rose to $5.33 billion (EUR 4.54billion) in the 12 months that ended March 31, while sales in the watchdivision grew 1% to $5.13 billion (EUR 4.37 billion), Richemont reportedFriday. Jewelry sales leapt 15% at constant exchange rates. "The strong performance was attributable to all maisons[that sell] jewelry, namely Cartier, Van Cleef & Arpels and Piaget,"Richemont's deputy chief financial officer Burkhart Grund said in an earningscall transcribedby Seeking Alpha. "Jewelry has now become the group's largest product line,and contributes 41% of total sales." Overall revenue from Cartier, Van Cleef & Arpels andPiaget - including sales of watches and other products - climbed 9% to $7.57 billion (EUR 6.45 billion).Operating profit for the jewelry division rose 15% to $2.26 billion (EUR 1.93billion) for the year, as the company did not have the same problem it had in2017, when overstocked retail partners sold inventory back to Richemont,hitting the company's profit. Asia Pacific and the Americas showed the strongest growth in jewelry, Richemont added. Group sales jumped 3% to $12.9 billion (EUR 10.98 billion),while profit increased 1% to $1.43 billion (EUR 1.22 billion) for the year dueto "tight cost control," the company said.Image: superidoljp