Nine Timely Luxury Watch Gifts for the Holidays

Vacheron Constantin Patrimony Contemporaine Ultra-Thin Caliber 1731 combines the complexity of a striking mechanism with the additional challenge of producing the thinnest minute repeater caliber and the thinnest minute repeater watch on the market—at just 3.90 and 8.09 mm thin respectively. It has a 65-hour power reserve, a silent flying strike governor, which steadies the rate at which the hammers strike the gongs. It is available at Vacheron Constantin boutiques.

Buying a luxury watch as a gift can be a downright terrifying experience. The choices are near endless in this day and age.

Montblanc Nicolas Rieussec Rising Hours Chronograph relies on two discs, one atop the other, to show not only the hours, but to also indicate whether it is day or night. This unusual time display is made possible by Montblanc’s caliber MB R220. The chronograph tallies 60 elapsed seconds and 30 elapsed minutes on rotating discs with motionless hands. It is available at Montblanc boutiques.

Fortunately, I put together a list of nine watches that cover a variety of mechanical variations, designs and lifestyle attributes. There are watches in all shapes, styles and prices. Some of the world’s most prestigious watch brands are represented as well as critically acclaimed independent brands. There are ultra thin watches. There are watches in line with a lifestyle pursuit, such as high-powered automobiles or world travel. Several watches on the list have fanciful complications. Then there are the timepieces that speak to history and heritage. There’s even a watch brand that’s made in America.

Arnold & Son HM Perpetual Moon boasts one of the biggest moonphase apertures on the market along with rich guilloché dials and three-dimensional big moon. The 42mm, 18k red gold case houses the Arnold & Son caliber A&S1512 mechanical hand-wound movement. It has a one day-deviation every 122 years, at which point a single push on the corrector will keep it in sync for another 122 years. It retails for $28,550.

Surely there is something on this short list that could be a perfect gift for that special man in your life.

Nomos Glashütte Zürich Weltzeit 5th Avenue watch was designed in Zurich built in its manufacturing facility in Glashütte, Germany, and dedicated to New York. It’s powered by the Nomos in-house caliber Xi. To view the time in another zone, press the button above the crown at 2 o’clock until the desired location is at 12 o’clock. The “New York” display is at the 3 o’clock marker in red typeface next to a 24-hour disc. It is available at Wempe stores worldwide, limited to 100 pieces. 

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Jaquet Droz Grande Heure GMT has 24 indexes in Arabic numerals set around a Grand Feu enamel dial make it easy to see all the hours of the day in two cities. The hands are designed in the form of a compass. The red hand indicates local time while the blued steel hand shows the time at the destination. When the two hands come together in the same time zone they merge into a single, bi-colored indication of the exact time. 

For the first time the Piaget Altiplano watch integrates a calendar and holds its place as the thinnest watch in the world in its category. The 40 mm watch has an 18k rose gold case set with 72 brilliant-cut diamonds (approx. 1 ct). The 1205P ultra-thin automatic mechanical movement is the thinnest in the world (3 mm thick), with small seconds and date and a 22k rose-gold oscillating weight.

The Dubey & Schaldenbrand Grand Dome R92 has a stainless steel tonneau-shaped column wheel chronograph combines vintage movements with modern craftsmanship and design. The R92 movement was originally fabricated in the 1950s. It uses a swivel-pinion design to synchronize the chronograph components. The dial is exposed providing full view of the movement. It retails for $16,700.

Graham Silverstone “RennSport” Skeleton reflects the accuracy and efficiency of automobile mechanics, showcases all parts of the caliber G1790 chronograph movement. The 46 mm steel case has polished bevel horns. A lateral porthole on the case at 10 o’clock provides a view of the escapement and balance wheel. Limited to 250 pieces it retails for $14,580. 

Devon Tread 2 Shining is manufactured in Los Angeles. It runs on Devon’s distinctive Time Belt movement and powered by a lithium-polymer rechargeable battery that can power the movement for up to 28 days. It retails for $9,950.

Vacheron Constantin Shares the Same Values as Matisse

Hugues de Pins of Vacheron Constantin addresses guests at the preview of a new Matisse exhibit at the Met. Photo credit: Anthony DeMarco

Vacheron Constantin has a long relationship with the Metropolitan Museum of Art. In support of this relationship the Swiss luxury watch brand is sponsoring the exhibit, Matisse: In Search of True Painting, which examines the process of how the world renowned artist, Henri Matisse, created his art and developed his skills by producing multiple works of the same scene in different painting styles.

Hugues de Pins, North American president of Vacheron Constantin, hosted a preview tour of the exhibit on November 29. Rebecca Rabinow, curator in the Museum’s Department of Modern and Contemporary Art, led a 20-minute tour of the exhibition where she detailed highlights among the 49 paintings. The exhibit will run till March 17, 2013.

Rabinow explained that Matisse took inspiration from traditional paintings and the work of his contemporaries. He painted the same scene twice in the different styles of those he was studying. Over the years his technique of painting the same scene twice produced wildly different affects that was not in the style of others.

Young Sailor I (left) and Young Sailor II provided a bold example of how Henri Matisse approached his work. Photo credit: Metropolitan Museum of Art

For example, his painting of a local teenager in Collioure, France, (pictured above) had all the hallmarks of the bright and expressive colors from his Fauvism period, a style of painting that he helped to create. He then painted a second version of the same image on an identically sized canvas, this time using flat color to produce a drastically different effect. Unsure of his new direction, Matisse told friends that the second painting was by the local postman. The exhibit includes many of these examples throughout his life (in particular two large paintings of a trio of bathers), his use of photography during his later years, and his paintings of a well-known Italian model named Laurette.

The exhibition gives the impression of a painter who was constantly getting better at his craft, even after the age where one might think he was past his prime.

“Matisse, in Search of True Painting I think corresponds very well with our company,” de Pins said during a lunch at the museum following the tour. “He was always looking, searching for perfection, excellence…. Our designers, our craftsmen, our watchmakers work in this spirit.”

De Pin said that even with the reputation Matisse had, it meant nothing to him as he continued to struggle with creating exceptional work. “You really need to keep on searching for excellence and perfection,” he said.

The event also gave a chance for de Pins to introduce Hyla Bauer as Vacheron Constantin’s new head of public relations in North America to the press members in attendance. Bauer was formerly the executive fashion editor of Conde Nast Traveler.

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Richemont Sales Up 37%, Jewelry Sales Up 32%, Watch Sales Up 38%

Richemont headquarters

Luxury goods group Cie. Financiere Richemont said Friday that year-over-year sales for the six months of 2010 increased 37 percent to 3.26 billion euros ($4.47 billion). At constant exchange rates (excluding currency fluctuations and other conditions) the increase was 27 percent for the period ended September 30. When removing the company’s recent acquisition of Internet retailer Net-A-Porter.com, sales increased by 22 percent.

The Geneva-based company said the strong growth in sales reflects, in part, low comparative figures in the prior period, when reported Group sales decreased by 15 percent.

Profit for the period rose 87 percent to 644 million euros ($883 million) and operating profit increased by 95 percent.

Its jewelry business (which includes Cartier, Van Cleef & Arpels and Piaget) saw its sales increase 32 percent to 1.69 billion euros ($2.31 billion) for the period. Both Cartier and Van Cleef & Arpels saw double-digit sales growth, Richemont said.

Watch sales (which include Vacheron Constantin, Baume & Mercier, Jaeger-LeCoultre, Lange & Söhne and IWC) rose 38 percent to 901 million euros ($1.23 billion).

Overall Group sales as measured by constant exchange rates increased 37 percent in the Americas, 36 percent in Asia-Pacific, 23 percent in Europe and 4 percent in Japan.

Johann Rupert, Richemont executive chairman and CEO, stressed that the strong sales figures benefited from favorable exchange rates and better economic conditions when compared to the post-recession prior year and cautioned that growth may slow during the second half of the year.

“The good performance achieved by Richemont in the first half of this year has been driven by a marked improvement in all business areas and across all geographies compared to the depressed levels seen last year,” Rupert said. “Richemont’s Maisons were able to benefit fully from this improved trading environment, further enhancing their leading positions in jewelry, watchmaking, writing instruments and accessories. … The robust sales momentum that the Group has seen for several months has continued through to the end of October; sales for the month were 36 per cent above those of October 2009 at actual exchange rates.”

He added, “For the second half of the financial year, we expect the high rate of growth in sales seen in the year to date to slow as a consequence of exchange rate movements and the more challenging prior year comparatives.”

Richemont’s Half-Year Sales Up 29%, led by Asian Demand and Jewelry and Watch Sales

Luxury goods conglomerate, Cie. Financiere Richemont SA, said Friday that sales for the six-month period, ended September 30, increased by 29 percent to 4.2 billion euros ($4.68 billion), year-over-year. At constant exchange rates (stripping out the effects of currency exchange rates), the increase was 36 percent.

The Swiss company reported solid growth across all segments, regions and channels. Operating profit increased by 41 percent to 1 07 billion euros ($1.2 billion). Net income for the period increased by 10 percent to 709 million euros ($791.3), reflecting the impact of a one-time gain in the comparative period.

Richemont owns several leading luxury goods companies, which it calls Maisons, with particular strengths in jewelry, luxury watches and writing instruments. These companies include Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc.

“Our Maisons were able to benefit from a favorable trading environment to enhance their positions in jewelry, watchmaking and accessories,” said Johann Rupert, Richemont, executive chairman and CEO. “The rate of increase in net profit was lower than the increase in operating profit primarily due to a one-off gain in the comparable period.”

Rupert also noted that the group’s net cash position is 2.6 billion euros ($2.9 billion) and that sales in month of October, not included in the report, increased 28 percent, year-over-year. Sales were strengthened by the group’s own retail network bolstered by very strong demand in the Asia-Pacific and Americas regions.

Although gross profit rose by 26 percent, gross margin percentage was 160 basis points lower at 63.2 percent of sales, due to adverse currency movements affecting sales, the strengthening of the Swiss franc and, as expected, the impact of Net-a-Porter, the online luxury goods retailer. The company’s brands raised prices in order to offset the strength of the Swiss franc during the period. The stronger Swiss franc is of particular importance to the cost of sales as the majority of the Group’s manufacturing facilities are located in Switzerland.

Compared with the group’s other brands, Net-a-Porter’s gross margin percentage is well below the average reflecting its distinct business model as an online retailer, Richemont said. Given its above-average sales growth, Net-a-Porter has a dilutive impact on the Group’s gross margin percentage.
 
Earnings per share increased by 11 percent for the period.
 
Double-digit organic growth was registered across all regions, including Russia and the Middle East. Travelers to Europe continue to be an important sales driver. All brands improved their performance in the region versus the comparative period.

Sales to the Asia-Pacific region increased 48 percent (60 percent at constant exchange rates) to 1.7 billion euros ($1.9 billion), led by China, which is now the company’s third strongest market, after Hong Kong and the U.S.

In Europe, sales increased 20 percent (22 percent at constant exchange rates) to 1.5 billion euros ($1.67).

Sales in the Americas grew by 23 percent (35 percent at constant exchange rates) to 602 million euros ($671.7), driven by significant High Jewelry sales, although business in general has been very encouraging, the company said.

Sales in Japan increased 9 percent (8 percent at constant exchange rates) to 380 million euros ($424 million), despite the dramatic events of last March. Van Cleef and Arpels and watches performed particularly well.
 
Directly operated boutiques and Net-a-Porter sales increased by 37 percent. This was well above the growth in wholesale sales and Richemont now generates 49 percent of its sales through its own retail network.

The growth in retail sales partly reflected the good performance of Net-a-Porter and the expansion of the Maisons’ network of boutiques to 919 stores. Openings during the period were primarily in high-growth markets such as China.
 
Jewelry sales grew by 34 percent to 2.16 billion euros ($2.4 billion). “Both Van Cleef & Arpels and Cartier performed exceptionally well,” Richemont said.

Watch sales increased 30 percent to 1.17 billion euros ($1.3 billion).  “All watch brands performed well worldwide, reflecting the strong demand for haute horlogerie,” Richemont said. “Despite higher input costs and the strength of the Swiss Franc, the contribution margin was 27 percent, reflecting the brand’s pricing power and operating leverage.”
 
Montblanc reported strong growth with a 10 percent increase to 334 million euros ($372.6 million), reflecting good demand for its range of watches and accessories particularly in the Asia-Pacific region.
 
Richemont’s fashion and accessories brands saw double-digit sales growth and more than tripled its profits to 23 million euros ($25.6 million). Alfred Dunhill and Chloé performed particularly well.
 
Net-a-Porter incurred losses during the period amounting to 22 million euros ($24.5 million), resulting from the amortization of intangibles and the costs associated with the continued expansion of its platforms in the U.K. and the U.S

Richemont Sales Up 21%, Profit Up 52%

Swiss luxury goods conglomerate, Compagnie Financière Richemont, said Friday that sales increased, year-over-year, for the first half of the fiscal year by 21 percent to €5.1 billion ($6.5 billion). By constant exchange rates sales grew 12 percent.

Profit for the period rose 52 percent to €1.08 billion ($1.37 billion); with operating profit up by 28 percent to €1.38 billion ($1.75 billion), benefiting from favorable currency movements, and gross profit up 24 percent to €3.31 billion ($4.2 billion). Operating margin gained 150 basis points to reach 27 percent.

The Geneva-based company cited “solid growth in all segments, regions and channels” along with favorable currency rates and Asian tourism in Europe for the strong performance.

Richemont owns many of the world’s best-known luxury brands (known as “maisons” by the company) including Cartier, Montblanc, Vacheron Constantin, Van Cleef & Arpels and Piaget. It also has wholesale businesses and owns the luxury retail website, Net-A-Porter.com. A list of its businesses can be found by following this link.

“The Group’s maisons benefited from favorable exchange rates effects, successful product launches as well as strong pricing power,” said Johann Rupert, Richemont executive chairman and CEO. “The increase in net profit was well above the prior period, reflecting both the growth in operating results and the non-recurrence of non-cash losses, which stemmed from the Swiss franc’s appreciation against the euro.”

He added, “Sales growth rates moderated, as evidenced by the October sales which grew by 12 percent at actual exchange rates. At constant exchange rates, they were 7 percent higher. Richemont is seeing good growth in Europe, supported by Asian tourism which is compensating for slower domestic Asia Pacific sales. Retail continued to lead wholesale, reflecting robust jewelry sales.”

Rupert did warn that sales and profits could slow as exchange rates will like be “less favorable” for the remainder of the fiscal year.

By region the company reported that sales in Europe accounted for 36 percent of overall sales as the region enjoyed good growth, with tourists driving the above-average increase. The highest growth rates were in the Maisons’ own boutiques in tourist destinations, including the Middle East. Europe’s reported a 23 percent growth in sales for the period to €1.85 billion ($2.35). At constant exchange rates, sales increased by 19 percent.

Asia Pacific remains the strongest region for Richemont but sales growth has slowed. The region accounted for 41 percent of the Group’s total, with Hong Kong and mainland China the two largest markets. “Sales growth in our maisons’ own boutiques in the region was well above the increase in sales to wholesale partners, partly reflecting the number of boutique openings in the last two years,” the company said. Asia reported a 22 percent growth in sales for the period to €2.1 billion ($2.67). At constant exchange rates, sales increased 9 percent.

After two years of what the company termed as “outstanding sales,” the Americas region reported that sales grew 16 percent to €698 million ($877 million). However, at constant exchange rates, growth was 4 percent. The region represented 14 percent of overall sales for Richemont.

Japan, which Richemont lists separately, saw what the company terms as “continued momentum” in sales in all retail segments. The struggling market saw its sales increase by 18 percent to €448 million ($570 million). At constant exchange rates the increase was 4 percent.

Its group of jewelry brands saw sales grow by 20 percent to €2.6 billion ($3.3 billion) with operating results of €958 ($1.21 billion), a 31 percent increase. Operating margin gained 280 basis points to reach 36.7 percent.

Meanwhile, its specialist watchmakers group reported that sales increased 25 percent to €1.46 billion ($1.85 billion) with operating results of €470 ($592 million), a 51 percent increase. Operating margin gained 560 basis points to reach 32.2 percent.

Montblanc, the German brand known for its luxury writing instruments but also manufactures and sells luxury leather goods, jewelry and watches, is listed separately by Richemont. It reported that its sales increased 10 percent to €368 million ($468 million) with operating results of €53 million ($67.3 million), a 2 percent decline. Operating margin lost 180 basis points to reach 14.4 percent. Richemont said that Montblanc doesn’t benefit much from sales in tourist destinations.

For its other businesses—which includes Richemont’s Fashion and Accessories businesses, Net-a-Porter and watch component manufacturing activities—results are as follows:

* Fashion & Accessories maisons saw double-digit sales growth and operating profits were in line with the prior period at €25 million.

* Sales growth at Net-a-Porter is “normalizing” but continues to exceed the Group’s average. Net-a-Porter reduced its losses during the period, but generated a positive operating cashflow.

* Losses at the Group’s watch component manufacturing facilities were in line with the comparative period.

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A Luxury Marketing Partnership: Rolls-Royce, Vacheron Constantin Host A Thomas Keller Dinner

Chef Thomas Keller explains the meal he prepared for the well-heeled guests of Rolls-Royce and Vacheron Constantin. Photo credit: Derek Gardner Photography

Luxury automobiles and high-end timepieces seem to go hand-in-hand among collectors. Those who appreciate the high-powered engines and vivid design of the most expensive automobiles, also admire the miniature components of mechanical watch movements and the more subtle finishes of well-crafted haute horlogerie. Many of these car and watch brands develop long-standing partnerships that include joint product introductions and long-term marketing agreements. This is especially true when it comes to sports cars.

However, it was a different kind of partnership that recently occurred between Rolls-Royce and Vacheron Constantin. The British luxury automobile company and Swiss luxury watch brand invited about 50 of their clients to dinner, but it wasn’t just any meal. 

Guests talk in front of a Vacheron Constantin watch display.  Photo credit: Derek Gardner Photography

The event was held in a villa on the Monterey Peninsula in a development at least partially owned by Clint Eastwood. The food was prepared by a staff led by Thomas Keller, arguably the best chef in the United States. The event was held on the night before the Pebble Beach Concours d’Elegance, the internationally renowned annual antique car competition held on August 19.

While the event was formal, the partnership between the two brands was informal and temporary, which is how they both want it. They have worked together a few times for small events in the past—including annual private events in Europe and when Vacheron Constantin opened its Madison Avenue boutique in late 2011. But this is the first time they’ve teamed up to put together an outing of this magnitude.

“There is a natural attraction between both maisons. We share a lot of customers. And there is a mutual appreciation from their customers for both nice cars and nice watches,” said Hugues de Pins, Vacheron Constantin, CEO of North America. “As far as I know this is the only one (company that Vercheron has partnered with). This is very punctual. There is no agreement between both companies.”

A Vacheron Constantin watchmaker explains the finer points of a luxury timepiece.  Photo credit: Derek Gardner Photography

De Pins defines this type of event as providing an experience for what who he describes as “friends” of the two brands. The event he says is not about sales.

“What we organize today is a dinner among friends and what we want to bring is an exceptional moment and an exceptional experience,” he said prior to the event. “What best can we get for our friends then having this world-class dinner by Chef Thomas Keller, surrounded by extraordinary cars and extraordinary watches in this beautiful scenery? I think this is going to be magic. This kind of takeaway is at the end of the day what our customers are looking for and expect. Not just the single fact of purchasing a watch but what comes beyond the purchase of a watch. The nice experience we want to live together.”

David Archibald, president of Rolls-Royce North America, Chef Thomas Keller and Hugues de Pins, Vacheron Constantin, CEO North America. Photo credit: Derek Gardner Photography

This is a sentiment echoed by David Archibald, president of Rolls-Royce Motor Cars North America.

“Luxury should not be defined by a single item, but viewed as a lifestyle. Rolls-Royce and Vacheron Constantin share a discerning clientele who seek superior craftsmanship and innovative design, as well as unique and memorable experiences.”  Archibald said. “An event such as this, with its stunning setting and Chef Keller’s unparalleled cuisine, is the epitome of the luxury lifestyle that both Rolls-Royce and Vacheron Constantin represent and offer to their clientele.”

But there is product placement. Dinner was served outside and in plain view was a two-tone Rolls-Royce Ghost strategically fronting both the view of the valley below and in front the setting sun. Inside the villa Vacheron had its collection of timepieces available for viewing. De Pins stresses that they are not for sale. Some of the items were one-of-kind pieces. The brand also brought a watchmaker who gave demonstrations for the guests. 
 

Thomas Keller created an open kitchen where guests can enter while the staff works. Keller us standing in the background.  Photo credit: Derek Gardner Photography

There was a bit of sticker shock for the Rolls Royce customers who I shared a table with when they learned that a few of the watches on display were nearly double the cost of a Rolls Royce.

In a kitchen open for guests to enter while the staff worked, Keller designed a dinner themed with the two luxury brands in mind. 

 

“We tried to bring inspiration from both of these companies and bring them to life on a plate,” he said. “I think we were to at least able bring some recognition to some of the key words and key phrases that are so ingrained in the philosophy and culture of these companies.”

Among the courses was a caviar dish titled “Silver and Platinum,” the metals for Rolls Royce cars (silver) and for luxury watches (platinum). The staff cut the vegetables for a hearts of palm salad in a way that resembles the watchmaking technique of beveling. A braised short rib was titled, “Best Made Better,” after the Rolls-Royce slogan. A final desert was titled “Bespoke,” of course named after what many define as the most ultimate luxury experience. It was a chocolate tart with a selection of condiments. 

A bespoke Rolls-Royce Ghost was in perfect view of the dinner guests as the sun was setting'. Photo credit: Derek Gardner Photography

The meal from appetizers to desert was not favorable, artfully prepared and flawlessly served. To pull this off Keller brought in 19 employees from his restaurants around the country, describing it as a major undertaking that included hotel accommodations during one of the busiest times of the year in Monterey and daily transportation to and from the villa.

“It’s a major commitment,” he said. “Vacheron has the same standards. Rolls-Royce has the same standards. I don’t do many of these events.”

It also was a major expense. It was rumored that the cost of hosting this event was about $1,700 per person. 

These two Patrimony Traditionnelle timepieces were among the watches the Swiss luxury watch brand had on display. Photo credit: Derek Gardner Photography

It’s the price of what de Pins describes as creating “magic,” for friends of the brand. Magic is certainly a way to describe the evening. Few details were left unattended from the greeting at the entrance of the villa to the gifts at the end of the night. As the sun set behind the Rolls-Royce and the evening became cool as it often does in this part of the country, women were given bright orange silk shawls—with the Rolls-Royce logo.

At the end of the night the two car collectors at my table, obviously moved by the experienced, declared that were going to buy another Rolls Royce.

Now that’s what I call magic. 

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Vacheron Constantin Partners with U.S. Watchmaking School

Students of the NAIOSW Swiss watchmaking classes of 2013 and 2014 along with school officials and Vacheron Constantin representatives.

Vacheron Constantin, and the North American Institute of Swiss Watchmaking have formed a two-year partnership to promote and support high watchmaking in North America.

Vacheron Constantin is the first Swiss watchmaking brand to partner with the NAIOSW, based in Dallas-Fort Worth, Texas. The partnership is an extension of the brand’s worldwide support of the Institute of Swiss Watchmaking, of which the NAIOSW is a branch.

Students in the classes of 2013 and 2014 that the Swiss luxury watch brand is sponsoring celebrated their first day of school on September 13 with a reception hosted by Denis Jaquenoud, president of NAIOSW, and Hugues de Pins, president, Vacheron Constantin North America.

The North American Institute of Swiss Watchmaking opened its doors in 2009 with a mission to preserve the art of fine watchmaking and meet an increasing demand for qualified watchmakers and craftspeople. The program accepts only six students per year to guarantee ample one-on-one training.

Vacheron Constantin will mentor and educate students about the watchmaker’s career from a brand perspective. The brand will supply educational tools on high watchmaking topics, such as the prestigious Hallmark of Geneva, founded in 1887. Students who graduate at the top of their class will be invited to Vacheron Constantin in Geneva for a three-week “Discovery Internship.”

“This partnership is faithful to our values of perpetuating the tradition of high watchmaking and transmitting the know-how of our watchmakers,” de Pins said.

Two certificates are offered at the NAIOSW: the Watch Encasing Technician Certificate which requires 640 hours of training over four months, and the Watchmaker Certificate which requires 3,000 hours over two years. The two-year Watchmaker program provides advance education and training. Both programs meet the exacting requirements of the "Swiss Made" standard and feature a student-centered learning environment based on theory and experience. The Institute’s trainers have a more than 50 years of watchmaking and teaching experience combined.

The NAIOSW is part of The Institute of Swiss Watchmaking, founded in 2008 in partnership with Watchmakers of Switzerland Training and Educational Program, an independent institution based in Switzerland. WOSTEP partners with watchmaking schools throughout the world to ensure high training standards and quality education in accordance with the demanding criteria of the Swiss fine watchmaking industry.

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Richemont Jewelry Sales Up 32%, Watches Up 40%; U.S. Sales Up 52%

Richemont headquarters

Swiss luxury goods group Compagnie Financiere Richemont SA said Wednesday that sales for the five-month period, ended August 31, increased 37 percent in actual exchange rates, over the same period a year ago. All segments of the company and all regions saw strong growth, which reflects in part, low comparative figures reported in the prior-year period and recent acquisitions.

Richemont released its financial results for the period before its annual general meeting Wednesday, held at its headquarters in Geneva.

The company saw double-digit growth in all its brands, which it calls “Maisons.” Watch sales—which include Jaeger-LeCoultre, Piaget, IWC, Baume & Mercier, Vacheron Constantin, Officine Panerai, A. Lange & Söhne and Roger Dubuis—reported a year-over-year 40 percent increase at actual exchange rates. When currency fluctuations are included the growth is 30 percent. Jewelry sales—which include Cartier and Van Cleef & Arpels—rose 32 percent at actual exchange rates and 21 percent at constant exchange rates.

Its writing instrument brand, Maison Montblanc, grew 28 percent at actual exchange rates and 20 percent at constant exchange rates. Meanwhile, its division listed as “Other,”—which include Alfred Dunhill, Lancel, NET-A-PORTER and Chloé—saw an increase of 62 percent in actual exchange rates (51 percent constant). This is at least partly due to the company’s recent acquisition of the shopping Web site, NET-A-PORTER.

By region, the Americas saw a 52 percent increase (38 percent actual), largely because of very weak comparative figures for the prior fiscal year.

The Asia-Pacific region, which includes the Middle East (51 percent constant, 36 percent actual), is the company’s most important region accounting for 41 percent of overall sales. In Europe, the sales increase of 27 percent at constant exchange rates and 23 percent in actual rates, fall to 15 percent at constant rates when new business is excluded from the figure. Meanwhile, results in Japan, (22 percent constant, 4 percent actual) were boosted due to favorable exchange rates.

In total, its retail division grew 47 percent (34 percent constant). Excluding the acquisition of NET-A-PORTER, retail sales increased by 24 percent at constant exchange rates.

Its wholesale business, which suffered in particular during the comparative period due to de-stocking by business partners in some markets, saw an increase of 30 percent (21 percent constant) for the period.

“The improved trading environment is certainly welcomed. However, it is far too soon to draw any conclusions about the sustainability of the economic recovery or whether the recession is truly behind us,” said Johann Rupert, Richemont executive chairman and CEO. “This time last year we were still seeing falling sales. This year, with double digit sales growth already in hand, Richemont will report significantly higher first half profit. However, the rest of the year is less straightforward. In the second half of last year, we saw some recovery in sales, setting higher comparative figures against which sales in the six months from October to March will be measured. Relative to the present conditions, those comparative figures were achieved with a weaker euro against the dollar and yen. Compared to the second half of last year, the current strength of the Swiss franc will be negative for the cost of sales.”

In addition to the brand’s mentioned, Richemont’s portfolio includes a Ralph Lauren Watch and Jewelry joint venture and other smaller Maisons and watch component manufacturing activities for third parties.

Vacheron Constantin Opens Boutique in Las Vegas

Entrance of the new Vacheron Constantin Las Vegas boutique.

Swiss luxury watch brand, Vacheron Constantin, opened a new boutique Monday at the Palazzo Hotel, Resort & Casino in Las Vegas, marking the company’s 30th boutique worldwide and its second boutique in North America after the opening in New York in September 2011.

The interior design of the new retail space uses contemporary elements combined with traditional design techniques, the Geneva-based brand said, noting that it is “an architectural perspective that reveals the brand’s constant search for excellence and aesthetic perfection.” The materials and color scheme provide “a warm and comfortable atmosphere dedicated to technical and precious haute horlogerie.”

The boutique will offer the entire range of collections from the Geneva-based brand, as well as exclusive boutique models.

“This opening is another milestone in the brand’s worldwide expansion and allows us to provide an experience that will enhance customer understanding of the brand and its longstanding history in haute horlogerie,” said Hugues de Pins, president of Vacheron Constantin North America.

Vacheron Constantin, established in 1755, is the world’s oldest continuous watch manufacturer.

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Richemont Expects Huge Sales and Profits as Hard Luxuries Continue to Sparkle

Montblanc boutique in Hamburg. Photo credit: Anthony DeMarco

A luxury slowdown in China, a European economy under constant crisis, and sluggish growth in the U.S. has failed to slow the growth in the sale of “hard luxuries” (jewelry and watches). The latest example is Geneva-based Compagnie Financière Richemont, which issued a statement Monday saying that it expects first half profits to rise from 20 percent to 40 percent, year-over-year.

Richemont—whose brands include Cartier, Van Cleef & Arpels, Montblanc and Vacheron Constantin—was required to make this statement prior to its sales and profits reports for the first half of the year. SIX Swiss Exchange requires that issuers make an immediate announcement when “the foreseeable profit or loss for a given period is expected to deviate significantly from the profit or loss achieved in the prior-year period.”

In accordance with these requirements Richemont said that sales for the four months ended in July rose 24 percent on a reported basis and 13 percent on a constant-exchange basis. Based on these results, Richemont’s said its operating profit for the six months ending September 30 is likely to show an increase of between 20 percent and 40 percent compared to the first six months of the last financial year.  Net profit for the same period may also increase by 20 percent and 40 percent.

Richemont sales for the five months ending August 31 will be announced on September 5 first-half results for period ending September 30 will be announced November 9.

This is the latest in financial reports that are revealing the resiliency and strength in hard luxuries.

* In late July, Paris-based LVMH reported revenue growth of 26 percent, year-over-year to $16 billion for the first half of 2012. Group profit rose 28 percent to $2 billion. The luxury group, whose jewelry and watch brands include Tag Heuer, Hublot and Bulgari, acquired in June 2011, reported that total jewelry and watch sales rose 113 percent to $1.6 billion, with Bulgari's revenue now included. Organic growth was 13 percent.

* A few days earlier, Swatch Group, the world’s largest watch company, said its watch and jewelry sales for the first half of 2012 increased 16.7 percent to $3.42 billion, year-over-year. The company owns 19 watch and jewelry brands in all market segments, including Swatch, Breguet and Longines.

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Richemont Reports Record Jewelry and Watch Sales

Cie. Financiere Richemont SA reported Thursday that sales for its fiscal year increased 33 percent to nearly 6.9 billion euros ($9.84 billion). Operating profit for the year, ended March 31, increased 63 percent to 1.35 billion euros. ($1.92 billion).

The Geneva-based luxury goods company reported strong sales across all segments and regions. Among the big winners for the year were jewelry and watch sales.

Richemont’s jewelry “masions,” Cartier and Van Cleef & Arpels, reported a 29 percent increase in sales to a record 3.48 billion euros ($4.9 billion), based on broad-based popularity in terms of geography and product lines. Brand owned boutiques did particularly well.

Its watch properties ( Vacheron Constantin, Baume & Mercier, Jaeger-LeCoultre, Lange & Söhne, Officine Panerai, IWC, Piaget, and Roger Dubuis), reported a 31 percent sales increase for the year to a record 1.77 billion euros ($2.52 billion), with all specialist watchmakers performing well, with the expected exception of, Baume & Mercier, which is undergoing restructuring. Operating margin increased to 21.4 percent of sales, in spite of higher costs of sales due to the appreciation of the Swiss franc and higher precious material prices.
(sales by region, outlook and CEO quotes after jump)

“We are pleased to report that Richemont has met the challenging environment of the past year by achieving strong sales growth across all segments and all geographic regions,” said Johann Rupert, Richemont executive chairman and CEO. “The year under review has seen record sales and profits for our jewelry maisons and specialist watchmakers, despite the stronger Swiss franc.… Net-A-Porter.com, which was acquired in April 2010, is performing ahead of its business plan.”

The company’s retail sales exceeded 50 percent of its overall sale for the first time because it was also the first time online luxury goods retailer, Net-A-Porter.com, was included with total sales. Excluding the e-commerce business, sales increased by 24 percent for the year. Group-owned boutiques increased to 876 boutiques with store openings primarily in growth markets, such as the Asia-Pacific region.

The Group’s wholesale business, including sales to franchise partners, grew despite being negatively impacted by the de-stocking by business partners, planned reduction in the number of points of sale in some key markets, most notably in the United States, and constraints in the supply of finished products.

Sales by Region
Sales in Europe, which account for 38 percent of total group sales, increased by 23 percent to 2.58 billion euros ($3.67 billion), reflecting purchases made by local clients and tourists and the integration of Net-A-Porter.com, to its retail sales mix.

The Asia-Pacific region now accounts for 37 percent of total group sales due to expansion by the company’s brands to take advantage of the increased wealth in the region. Sales for the year increased 36 percent to 2.57 billion euros ($3.66 billion).

Sales in the Americas, which account for 14 percent of group sales, increased 40 percent to 998 million euros. The company says that this strength in sales reflects both weak comparative sales, the integration of Net-A-Porter.com, and positive exchange rates. However, growth in the region also stems from a strong retail performance and higher levels of productivity in its wholesale network. The reported growth has occurred despite the reduction in the number of points of sale in the region.

Japan, which accounts for about 11 percent of group sales, reported an 18 percent increase in sales to 737 million euros ($1.05 billion), largely due to the significant appreciation of the yen. Yen-denominated sales increased by 1 percent, reflecting positive responses to new products and a stabilization of the Maisons’ businesses. The earthquake and tsunami of March 11 and the aftermath occurred shortly before the group’s financial year-end and consequently had only a minimal impact on the group’s performance.

In its outlook, Rupert said sales in the month of April were 32 percent above the comparative period, or 35 percent at constant exchange rates.

“In an environment currently marked by geopolitical unrest and currency instability, we hope that this positive trend will be confirmed in the coming months,” he said, adding that capital investment in its companies over the next two years will run from 6 percent to 8 percent of total sales.

Graff, Blancpain among Top-Rated Luxury Brands

Heart-shaped diamond necklace by Graff.

The Luxury Institute released its 2011 Luxury Brand Status Index survey of wealthy U.S. consumers. Watches, jewelry and automobiles (selling for at least $100,000) were rated on a one-to-ten scale by consumers who earn at least $200,000 a year. The top three brands in each category follows:

Blancpain L-Evolution

Jewelry
Graff 8.38
Buccellati 8.19
Asprey 8.05


Watches
Blancpain 8.35
Rolex 8.01
Vacheron Constantin 7.85

Ultra-Luxury Autos
Maybach 8.44
Bentley 8.32
Bugatti Veyron 8.22

Brands were rated based on quality, exclusivity, social status and overall ownership experience. In addition, these affluent consumers based their selection on price worthiness, their willingness to recommend it and the likelihood they'll buy it next time they make a purchase in the category.

Rare Clocks, a Reverso Anniversary Sale and Fine Watches at Antiquorum Geneva Auction

A Breguet silver carriage clock with 10 complications once owned by the Marquise de Béthisy is one of the top items on the block at the Antiquorum Geneva sale of “Important Modern and Vintage Timepieces,” to be held on May 15.

Breguet introduced his silver humpback carriage clocks—of which only a few were made—circa 1812. The present clock is the most complicated of the eleven Breguet humpback carriage clocks known to exist. It has a total of 10 complications: grande sonnerie striking; petite sonnerie striking; alarm; perpetual calendar; days of the week; date; months; years; moon phases; and equation of time. It is the only known example with a quadruple digital perpetual calendar. The clock was sold to the Marquise de Béthisy on May 6, 1678, Antiquorum said. Its presale estimate is $173,000 to $231,000.

Another exceptional clock at auction is the Vacheron & Constantin "30 Days, Constant Force." No. 418068, made in 1933. This Art Deco style-clock has a 30-day power reserve. It is furnished by two mainspring barrels, which Antiquorum says is very unusual in a clock of its size, or of any clock. One of the difficulties of long-duration clocks is that timekeeping is affected as the mainspring winds down. This problem is counteracted by the use of a constant force escapement, a unique instance for Vacheron & Constantin and almost certainly for the entire Art Deco period. Pres sale estimate is $81,000 to $139,000.

More than 500 vintage and modern timepieces, pocket watches, and, of course, clocks will be offered for sale at the auction, which will be held at Geneva's Mandarin Oriental. The auction will also celebrate the 80th Anniversary of the iconic Reverso watch with a selection of 30 Reversos, including original pieces from 1931, emblematic and ultra-rare versions with colored dials, limited series with complications, and watches with enamel-decorated case backs. Jaeger-LeCoultre is partnering this special "Reverso Chapter," and will provide an extract from its archives, free of charge, for each lot made prior to 1950.

The Reverso was created in 1931 for British army officers stationed in India who requested a watch that could survive a polo match. The swiveling case of the Art Deco-style watch protected the dial and offered a surface that, as of the 1930s, could be personalized by means of engraving or enamel.

The highlight of this “Reverso Chapter” is a very rare, early, and desirable Steel Reverso with red lacquered dial with a presale estimate of $5,775 to $9,200.

One of the very first models to bear the LeCoultre signature, a 1930's Staybrite watch with chocolate-colored dial is a classic Reverso watch with small seconds. Six others are featured in the sale, including a rare example made for the French market and bearing the Jaeger signature, and another watch from among the few that were destined exclusively for the American market (presale estimate, $5,778 to $9,200).

Among the modern Reverso wristwatches, the highlight is "Mucha's Four Seasons" No. 1/25, Ref. 276.1.62, a set of four enameled pieces introduced in the 1990s and made in a limited edition of 25 sets. On the back of each case is a painted enamel portrait of a woman symbolizing each of the four seasons by Miklos Merczel, the manufacture's enamel artist (presale estimate $70,000 to $92,000).

Also on the block is a Louis Audemars "Grande Complication - "La Russe II," No. 12199, that retailed by G. Aspe, Paris in 1896. This timepiece is one of the most important complicated watches of the 19th century, Antiquorum says, with double perpetual calendar for Julian and Gregorian calendars, as well as minute-repeating, two time zones, chronograph, central 60-minute register, moon phases, lunar calendar and "reference d'heure" world-time calculation chart functions (presale estimate $115,000 to $173,000).

Offered at auction for the first time, the Rolex "Oyster Perpetual Date, Explorer II," Ref. 1655, Spade of Oman, was made in 1974 and retailed by Asprey of London. It is one of the few Rolex watches to feature the "Spade of Oman" logo. These special watches, with case number engraved on the inside case back, were sold by Asprey, the official Rolex retailer in the Arab world. This model also bears the rare engraved "Asprey" name on the outside caseback (presale estimate $115,500 to $173,000).

Another Rolex on the block is the "Oyster Perpetual, Comex, 660ft./200 m, Superlative Chronometer, Officially Certified," Ref. 1665, Rail Dial. The 1980 watch is accompanied by its original guarantee, 1970s Submariner and Oyster booklets, hang tag, anchor and original fitted box, as well as a COMEX magazine and COMEX regulator (presale estimate $81,000 to $150,000).

 There are two Patek Philippe watches that should earn strong interest in the upcoming auction, according to Antiquorum.

The first is a Reference 130, with pink dial, confirmed by the extract from the archives. This "Staybrite" stainless steel wristwatch with square button chronograph, register and tachometer scale was made in 1941 and was sold on March 3, 1943. Its presale estimate is $173,000 to $231,000.

The second is a Reference 5970G, circa 2006. This 18k white gold wristwatch has a square-button chronograph, register, perpetual calendar, moon phases, 24 hour indication, and tachometer (presale estimate $115,000 to $173,000).