Richmont Group, One of the Top 3 Watch Groups
Recorded Record High Sales of 1.5 Trillion KRW in Korea Last Year
'Nth Price Increase' Cartier
Dividend of 53.4 Billion KRW Sent to Headquarters
Richmont Korea, which operates the luxury watch and jewelry brand 'Cartier,' recorded its highest-ever performance last year by earning 1.5 trillion KRW in South Korea. The sales increase is attributed to continued demand for luxury brand products as wedding gifts and rings, combined with the effect of price hikes.
According to the audit report submitted by Richmont Korea on the 25th (covering April 1, 2023, to March 31, 2024), the company's revenue during this period was 1.5014 trillion KRW. This represents a 7% increase from the previous year's revenue (1.3979 trillion KRW), marking the highest performance in history. Richmont Korea, which recorded sales of 864 billion KRW in 2020, saw its revenue rise to 1.186 trillion KRW in 2021 due to a surge in luxury demand during the COVID-19 period, and has been setting record-high performances every year since.
Tank Anglaise S Model Diamond Setting Pink Gold
Richmont Korea is the Korean subsidiary of the Richmont Group. The Richmont Group is considered one of the world's top three watch groups alongside the Swatch Group and LVMH (Louis Vuitton Mo?t Hennessy). Centered on its flagship brand Cartier, it owns watch brands such as 'IWC,' 'A. Lange & S?hne,' 'Jaeger-LeCoultre,' 'Piaget,' 'Vacheron Constantin,' 'Roger Dubuis,' and 'Panerai,' as well as fashion and jewelry brands like 'Van Cleef & Arpels,' 'Buccellati,' 'Delvaux,' and 'Chlo?.' The total number of stores operated domestically is 121.
The rise in Richmont Korea's sales is largely attributed to price increases by major brands. Cartier raised product prices in April and November last year. As a result, Cartier's 'Love Ring (Yellow, Pink Gold),' the most popular choice among couples preparing for marriage, has increased from around 1.56 million KRW at the end of 2022 to 1.79 million KRW currently, a 15% (230,000 KRW) price hike. Watch prices have also risen significantly; the popular 'Tank Must Watch' leather strap was priced at 4.19 million KRW but now costs 4.93 million KRW (17%), approaching 5 million KRW.
Additionally, IWC raised product prices by about 4-5% in November last year, and Piaget increased watch prices twice by about 5% in May and September last year. Jaeger-LeCoultre also implemented price hikes in January and June last year. Van Cleef & Arpels raised average product prices by about 10% in May last year, and Delvaux, known for the 'Kim Hee-ae bag' (Briand bag), increased product prices by an average of 7% in June last year.
Operating profit decreased by about 20 billion KRW compared to the previous year to 106.1 billion KRW due to increased cost of sales. Although the profit earned was smaller, dividends actually increased. Dividends sent to the headquarters during this period amounted to 53.46 billion KRW, an 8% increase from the previous year (49.592 billion KRW). Donations also nearly doubled to 570 million KRW from 250 million KRW the previous year.
Meanwhile, this year, major luxury brands have been raising prices, causing luxury product prices to rise consecutively. In particular, the price hikes of luxury watch brands are becoming steeper. Rolex, which used to raise prices only once at the beginning of each year, increased prices twice this year in January and June. IWC has announced it will raise prices by 3-5% next month, and Jaeger-LeCoultre is also expected to adjust prices on some products next month. Cartier raised prices of watches and jewelry products by 5% last month.
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