Richemont Q3 sales increase but Europe drops

At constant exchange rates, Richemont Group sales rose by 8 percent to 5.6 billion euros versus the prior-year period, with increases recorded in almost all regions, channels and business areas.

For the nine-month period, the company’s sales increased by 11 percent at constant exchange rates and by 5 percent at actual exchange rates.

Highlights of Richemont’s Q3 results across geographies

In Asia Pacific, the company reported sales growth of 13 percent to 2,049 million euros, fuelled by a 25 percent sales increase in mainland China, Hong Kong and Macau combined, more than offsetting softer performance in several other Asian markets.

In Europe, sales were 1,226 million euros, 3 percent lower as higher sales to Chinese and domestic clientele did not compensate for an overall reduction in tourist spending, notably from Americas-resident clients.

In the Americas, sales rose by 8 percent to 1,355 million euros. The sharpest sales growth was generated in Japan, at 18 percent. Sales in the Middle East & Africa region rose by 10 percent to 449 million euros, supported by both robust local and tourist demand in the UAE and Saudi Arabia.

Richemont records sales increase across retail channels

All distribution channels recorded sales growth except for the online retail channel where sales decreased by 5 percent to 356 million euros, while retail sales increased by 11 percent to 3,942 million euros, with growth in all regions – with the exception of Europe. Wholesale sales were 4 percent above the prior-year period.

The group’s three Jewellery maisons - Buccellati, Cartier and Van Cleef & Arpels - generated a sales increase of 12 percent, underpinned by solid jewellery and watch sales. Sales progressed in almost all channels and regions.

Specialist watchmakers sales rose by 3 percent reflecting a retail outperformance.

The group’s other business area, which is predominantly composed of the fashion & accessories maisons, saw sales decline by 1 percent compared to the prior-year period.