- Prachi Singh |
Ahead of its annual general meeting, the Richemont Group has announced that the company’s sales for the five months ended August 31, 2017, increased by 12 percent at constant exchange rates and 10 percent at actual exchange rates. Excluding the exceptional inventory buy-backs in the comparative period, constant currency sales increased by 7 percent for the period.
The company said, the double-digit sales growth during the first five months was driven by strong performance in the jewellery maisons and easier comparative figures. Retail sales increased in most regions, with solid growth in Asia Pacific, Japan and the Americas. Richemont said, 11 percent increase in wholesale sales primarily reflects the impact of the non-recurrence of the exceptional inventory buy-backs.
Asia Pacific leads sales rise in all regions
The company added, sales increased in all regions, led by Asia Pacific. The strong performance in Asia Pacific was supported by double digit increases in most markets, including China and Hong Kong, where a large part of the exceptional inventory buy-backs took place in the comparative period. The 3 percent growth in Europe reflects contrasted performances within the region as well as the emerging negative impact of a strong euro on tourist spending.
In the United Kingdom, however, sales grew at a double digit rate benefitting from favourable currency movements. In Japan, growth reflected higher domestic and tourist spending. Sales in the Middle East showed subdued growth, impacted by geopolitical uncertainties.
Retail sales were driven by strong performances in the jewellery maisons and the specialist watchmakers as well as by the reopening of the Cartier flagship stores in New York and Tokyo a year ago. Richemont’s other businesses, the company added, also reported sales growth overall, with most maisons showing continued progress.