Asia Recovery Boosts Richemont Sales

RAPAPORT… Sales at Richemont’s jewelry and watch brands jumped in the
April-to-August period amid a strong improvement in Asia.

Revenue from “jewelry maisons” — Cartier and Van Cleef &
Arpels — rose 16% year on year during the five months, the Geneva-based luxury
group reported. Sales at Richemont’s specialist watchmakers, including Piaget
and Vacheron Constantin, advanced 6%.

The increase at the jewelry maisons was one of the main factors
behind Richemont’s overall 10% sales hike for the period, the company said
Wednesday.

Group sales saw double-digit increases in most Asia-Pacific
markets, including China and Hong Kong. This was partly because of a comparison
with last year’s weak numbers, when the company bought back inventory from retail partners
that were overstocked, Richemont explained.

Sales also grew in Japan, reflecting higher spending by
locals and tourists. In Europe, the increase was 3% amid contrasting performances
across the region and the negative impact of a strong euro on tourist spending.
Meanwhile, double-digit growth in the UK reflected the weakening of the pound.

Growth in jewelry and watches also benefited from
comparatively weak figures in the same period last year, when sales fell 16% in
the jewelry brands and 19% at watchmakers. The company also reopened Cartier
stores in New York and Tokyo, boosting revenue.

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