Hodinkee
Richemont Financial Results Show U.S. Market Resilience As Middle East Sales Hit By War
Richemont's annual financial results and executive commentary showed continued strength in the U.S. market for the Swiss luxury conglomerate's watches and jewelry despite rising consumer prices and economic fallout from the war with Iran. At the same time, sales in the Middle East, particularly the United Arab Emirates have declined since the conflict began in late February. Richemont Chairman Johann Rupert. "It is, at times, truly surreal, but the US economy, the metrics are still looking better than many other economies," Johann Rupert, Richemont's chairman, said on a call with media following the release of the company's annual financial results. Richemont said sales in the Americas rose 17% from the year before and increased by double digits in both watches and jewelry at constant exchange rates during the company's fiscal year ended in March. Richemont, which owns brands including Cartier, Van Cleef & Arpels, IWC, Jaeger-LeCoultre, and A. Lange & Söhne, said sales in the region increased by 18% in the fourth quarter of its fiscal year compared to the same period a year earlier. "Looking ahead, uncertainty is likely to persist, not least in relation to developments in the Middle East," Rupert said. While U.S. sales stayed resilient, Richemont brands selling in the United Arab Emirates, particularly in Dubai, suffered declining sales and foot traffic in stores because of the war. While Abu Dhabi has shown signs of recovery, "in Dubai, they are more reserved, and y...
