Swiss luxury goods giant Richemont said third quarter performance was satisfactory worldwide – except in Asia Pacific.
Following several years of exceptional growth in the Asia Pacific region, Richemont posted flat sales growth in the region, particularly in China, where figures were below last year.
While wholesale sales growth was lower than in the first six months and in the comparative period due to the cautious approach taken by the group’s retail partners in Hong Kong and mainland China, boutique openings contributed to the positive trend in retail sales.
Meanwhile, sales in Japan grew two per cent, a slightly lower rate than that seen during the first six months of the year.
While it is unclear how business patterns may develop and how the business in the Asia Pacific region will evolve in the near future, Richemont says it will take a long-term view in managing its business and will continue to invest in the development of its maisons.
It recently formed a joint venture with Chinese jeweller Chow Tai Fook to boost the sales of its watch brand Baume & Mercier.
Total sales for the quarter increased five per cent at constant exchange rates with improved growth in the US.