Compagnie Financière Richemont saw sales in the first fiscal quarter surge 14 percent to 5.32 billion euros, fuelled by a strong rebound among Chinese tourists and locals, the luxury giant said in a trading update on Monday.
At constant exchange rates, year-on-year sales were up 19 percent, with mainland China growing in the double digits and Hong Kong and Macau seeing triple-digit increases Chloé, Delvaux and Dunhill, rose by 6 percent at constant exchange rates.
The quarterly gains did not impress investors, with Richemont shares falling 8 percent to CHF 141.55 morning trading. Cartier, Van Cleef & Arpels, Buccellati – grew 24 percent in the 3 months to June 30, while sales in the watch division were up 10 percent.
Richemont said the surge in China was due to favorable comparatives with the corresponding period last year; the lifting of lockdown restrictions; and the subsequent rebound in tourism across the entire Asia-Pacific region.
By contrast, sales in the Americas were down 2 percent due to lower wholesale sales in the region which has been impacted by a cost of living crisis, rising interest rates and an overall slowdown in luxury spending. Retail sales in the Americas were flat
In Europe, sales were up 11 percent. Richemont said that growth came from spending by locals, and tourists from the Americas, the Middle East and, more recently, China. Most markets, particularly France, Italy and Switzerland, generated higher sales
Yoox Net-a-porter, which is now considered a discontinued operation saw sales shrink by 8 percent at reported rates and 10 percent at actual ones. Richemont said the decline was due to a “globally challenging environment” for digital distribution
The company’s net cash position as of June 30 was 6.6 billion euros, compared with 5.4 billion euros in the corresponding period last year.
Cartier Summer 2023
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