Sales at luxury group and Cartier owner Richemont were almost unchanged in the three months through June, the company said, as a sharp drop in Chinese demand clouded the overall result, pushing it just below expectations.
Richemont said at constant exchange rates, sales rose by 1 per cent to US$5.77 billion, after growing by 19 per cent in the prior-year period, demonstrating resilience in a “continuing uncertain macroeconomic and geopolitical environment”.
The figures compared to a consensus forecast of sales growth of 2 per cent at constant rates assembled by Visible Alpha.
At current exchange rates, sales were down 1 per cent.
“All regions delivered growth except for Asia Pacific where sales contracted by 18 per cent, as higher sales in South Korea and Malaysia only partially mitigated a 27 per cent decline in China, Hong Kong and Macau combined,” the company said.
The figures follow a rocky start to the reporting season for European luxury goods companies. On Monday, a sharp drop in sales at Swiss watchmaker Swatch and a profit warning from Britain’s Burberry hammered the firms’ shares.
The sales report “should be met with some relief after the unhelpful setting of the scene by [Swatch] some 24 hours ago,” said Jefferies.
In Europe, sales increased by 5 per cent, while in the Americas, a 10 per cent sales increase reflected sustained domestic demand across all distribution channels, Richemont said. The strongest regional sales growth was in Japan, an increase of 59 per cent, it said.
- Writing by Dave Graham, Additional reporting by Marleen Kaesebier and Mimosa Spencer; Editing by Miranda Murray and Thomas Seythal, Kirsten Donovan, of Reuters.
