Richemont sales rise 17% in the half-year as the group's Specialist Watchmakers grow 10%

Jaeger-LeCoultre Master Ultra Thin Moon Q1242521 in 18-carat pink gold. Jaeger-LeCoultre was among the brands driving growth at Richemont's Specialist Watchmakers. © Jaeger-LeCoultre

Richemont posted sales of €12.3 billion for the six months ended 30 September, up 17% at constant exchange rates, and its Specialist Watchmakers division grew by 10%, led by Vacheron Constantin, Jaeger-LeCoultre and A. Lange & Söhne, according to the half-year results published on Friday by the Geneva-based group.

The Specialist Watchmakers, which also include IWC, Panerai, Piaget and Roger Dubuis, recorded sales of €1.7 billion, up 9% at actual exchange rates. Growth accelerated in the second quarter to 12% at constant exchange rates.

The division's operating result tripled, from €50 million to €150 million, an operating margin of 8.8%, or 7.7% excluding one-off items. According to the group, demand for these brands in China remained soft and sales in Asia Pacific were stable.

The Jewellery Maisons (Cartier, Van Cleef & Arpels, Buccellati and Vhernier) remain the group's engine: their sales rose 19% at constant exchange rates, with an operating margin of 35.3%.

Datograph Perpetual, reference 410.136E, in platinum. A. Lange & Söhne was one of the three brands that led the division's growth. © A. Lange & Söhne

At group level, operating profit rose 33% to €3.1 billion and profit for the period 39% to €2.5 billion. Operating profit includes €229 million of one-off gains linked to customs tariffs; without them it would have been €2.9 billion, a margin of 23.6%. Sales growth slowed from 20% in the first quarter to 13% in the second, at constant exchange rates.

By region, at constant exchange rates, the Americas grew 23%, Japan 30%, Asia Pacific 16% and Europe 13%. The Middle East and Africa was the only region to decline, by 2%, affected by the conflict in the region.

Richemont gave no numerical guidance and expects the macroeconomic and geopolitical environment to remain volatile for the foreseeable future. According to WatchPro, the group's shares fell by around 6% in early trading.

Find out more on the group's website.