Exchange rates hit Richemont

Although sales for the third quarter rose 10 percent, luxury goods group Compagnie Financière Richemont said revenues would have gained 15 percent had exchange rates remained constant. A weakening dollar and yen cut into results, although adjusted gains were in line with analysts' expectations.

The Swiss group, which counts Cartier, Van Cleef & Arpels, IWC, Chloé and Panerai among its stable of brands, posted a rise in retail sales of 14 percent, while wholesale sales increased 7 percent. All geographic regions enjoyed double-digit growth, with Japan being a notable exception. Sales in the region fell 2 percent at actual exchange reates, while European sales slowed compared with the first half, at 13 percent at actual exchange rates. An excellent first half in Japan caused tough comparables, while the further weakening of the yen dented sales. Nevertheless, Richemont pointed out that specialist watchmakers and Montblanc excelled in the region and underlying sales continued to grow. Meanwhile, China contributed significantly to 13 percent growth in the Asia Pacific region. Cartier and Van Cleef & Arpels performed particularly well in the Americas , where the weakening dollar bit into otherwise strong sales growth of 18 percent (13 percent at actual exchange rates).

Growth at all the company's product divisions was in evidence, with specialist watchmakers and writing instruments showing the best results with 13 percent growth each. Leather and accessories gained 1 percent at actual exchange rates, while the jewellery division saw revenue rise 8 percent. The division enjoyed the strongest results in the Americas and the Asia Pacific region. In other businesses, fashion house Chloé realized sales growth of 60 percent, a slowdown compared with the first half caused by tough comparisons with the corresponding quarter the year before.

The Alfred Dunhill brand performed strongly in key Asian markets, achieving double-digit growth, thanks to the integration of retail activities in China . Its results in Japan were, however, minimal. The Lancel brand posted sales growth of 3 percent for the quarter.