Swiss luxury goods conglomerate Richemont, led by South African billionaire Johann Rupert, showcased robust growth as its sales for the first quarter of the 2024 fiscal year surged by double digits, according to the company’s ad hoc announcement.
The 14-percent increase in sales was propelled by China’s consumption-led economic rebound and a strong resurgence in demand for high-end jewelry in Asia, which managed to offset softer sales in the Americas region.
In the first quarter of the 2024 fiscal year, Richemont’s revenue soared from €4.65 billion ($5.23 billion) to €5.32 billion ($5.98 billion), demonstrating a remarkable performance in an economically challenging period.
The Asia-Pacific market proved to be a vital driver for Richemont’s success, as the region’s sales surged by an impressive 32 percent, soaring from €1.17 billion ($1.31 billion) to €2.24 billion ($2.52 billion). The lifting of COVID-related restrictions and reopening of borders contributed significantly to this growth.
Conversely, sales in the Americas faced a 4 percent decline, dropping from €1.14 billion ($1.28 billion) to €1.09 billion ($1.225 billion). A decrease in wholesale sales and retail sales that were broadly aligned with the prior-year period contributed to this setback.
On the brighter side, the Middle East & Africa region witnessed a remarkable 15 percent surge in sales, rising from €385 million ($432.8 million) to €432 million ($485.7 million), fueled by higher domestic and tourist spending in Dubai.
Despite the impressive financial performance, Richemont experienced an unexpected drop in share price on the Swiss Exchange, with an 8 percent plunge from its Monday opening price of CHF153.5 to CHF141 at the time of reporting.
This decline in the company’s share price affected all shareholders, including Rupert, whose 9.14-percent stake in Richemont led to a net worth slump of over $900 million in less than 24 hours, reducing his net worth to $11.8 billion.
