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Richemont reports positive growth in Q3 sales

By Prachi Singh

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Business

Sales in the third quarter ending December 31, 2016 at Richemont increased by 5 percent at constant exchange rates and by 6 percent at actual rates compared to the prior year’s period.

Retail sales grew by 12 percent, compared to the 5 percent decline in the first six months of the current year, underpinned by rise in jewellery sales, positive watch sales and the reopening of the two Cartier stores. In the wholesale channel, the sales decline was 3 percent.

Richemont reports positive sales across markets

In Europe, sales increased by 3 percent in the third quarter, in contrast with the 17 percent decline registered in the first six months of the year. This improvement, the company said, was primarily driven by robust local sales and tourist purchases in the United Kingdom as well as strong jewellery sales across the region.

Richemont further said that 10 percent growth in sales in the Asia Pacific region reflected strong performances in mainland China and Korea, mitigated by continued declines in Hong Kong and Macau. Sales in the Americas region grew by 8 percent, supported by jewellery and the reopening of the Cartier Mansion in New York.

The decline in Japan was limited to 1 percent due to the resilience of the domestic clientele and the reopening of the Cartier flagship store in Tokyo, while the Middle East and Africa continued to be subdued.

Jewellery demand drives sales growth

The company said, good demand for jewellery products and positive watch sales in retail contributed to the 8 percent sales increase at the jewellery maisons. The Specialist Watchmakers’ sales were down by 2 percent with positive growth in the retail channel offset by continued weakness in the wholesale channel.

The other businesses posted good growth, mainly driven by Chloé, Montblanc and Peter Millar.

Sales over the nine-month period to December declined by 6 percent at constant exchange rates and by 7 percent at actual exchange rates. For the year ending March 31, 2017, the company expects net profit to face a challenging comparative due to the prior year’s inclusion of the 639 million euros (677 million dollars) non-cash gain relating to the merger of The Net-A-Porter with Yoox Group.

Picture:Richemont

Richemont