Richemont beats forecasts with 13% Q1 sales growth as jewellery surges — but Middle East dips 3% as Iran war keeps tourists away
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ZURICH, May 22 — Cartier owner Richemont reported stronger-than-expected quarterly revenue on Friday, as demand in the United States and Asia offset weaker sales in the Middle East.
Sales rose 13% at constant exchange rates to 5.40 billion euros ($6.27 billion) in the first quarter, above analyst forecasts of 5.30 billion euros, according to a Visible Alpha consensus.
Jewellery sales rose 14%, supported by demand for Cartier, Buccellati, Van Cleef & Arpels and Vhernier brands. Watch sales, including IWC, Jaeger-LeCoultre and Piaget, increased 1%.
Richemont said growth in Asia, Japan and the Americas helped offset a 3% sales decline in the Middle East, where tourist demand was affected by the Iran war.
Full-year net profit rose to 3.48 billion euros from 2.75 billion euros a year earlier, below forecasts of 3.69 billion euros.
The company’s operating profit margin fell 90 basis points to 20.0%, reflecting higher raw material prices, including gold.
