Richemont posts strong rise in sales


Richemont posts strong rise in sales

Published Date: 2019-07-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

Richemont posts strong rise in sales

The luxury goods group says Japanese and Chinese sales were particularly strong, while protests in Hong Kong affected its business there.

Richemont has posted a big increase in first-quarter sales thanks to strong demand from customers in China and Japan and its Online Distributors segment. However, recent street protests in Hong Kong and the relative strength of the Hong Kong dollar impacted sales there.

In a trading update for the three months to end-June, the luxury goods group reported a 12% increase in sales at actual exchange rates, while they were up 9% at constant exchange rates. Excluding Online Distributors, sales were 6% higher at actual exchange rates and 3% at constant rates. Online Distributors includes Watchfinder & Co. and Yoox Net-a-Porter (YNAP), which were only included for a portion of the comparative period.

Sales in Japan and Asia Pacific, notably in mainland China, showed double-digit growth, while it recorded high single-digit growth in the Americas. Japanese sales were supported by good domestic and tourism spending, while Chinese sales were boosted by lower VAT and custom duty rates. In the Americas, sales were up 1% as growth at its Jewellery Maisons made up for lower sales at its Specialist Watchmakers operation. Hong Kong is one of the biggest markets for Swiss watches and the protests were a deterrent to tourists.

Its shares rose 0.3% to R120.79 yesterday.

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