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Richemont's 3Q Sales +4%, Misses Forecasts

Strong Growth in Europe and Americas Offset by Declining Far East Sales

Jan 15, 2015 2:41 AM   By Ronen Shnidman
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RAPAPORT... Compagnie Financiere Richemont, a luxury retail brand owner, reported that its sales increased 4 percent year on year to $3.59 billion (EUR 3.05 billion) during the third quarter that ended on December 31, 2014. The company noted that sales, measured at constant-exchange rates, were flat due to mixed retail trends across major global markets.  The company missed analysts’ consensus forecast of $3.64 billion (EUR 3.1 billion) in revenue during the quarter, according to The Wall Street Journal.

Sales from jewelry maisons, which include Cartier and Van Cleef & Arpels, rose 3 percent to $1.85 billion (EUR 1.57 billion), but they fell 1 percent at constant-exchange rates. Richemont's sales from its specialist watchmakers were flat at $961 million (EUR 816 million), and down 4 percent at constant-exchange rates.

The company said that sales growth in the Americas and Europe during the Christmas shopping season was partially offset by declining revenue from Japan and the Asia-Pacific region. The company specifically noted a poor trading environment in Hong Kong during period, a major market for its Swiss watch products.

European sales benefited both from strong local consumption as well as the return of visitors to major tourist destinations, encouraged by a weaker euro. In the U.S., sales growth was driven by jewelry demand. The company also noted that in general jewelry performed better than watches at the retail level during the quarter.

Tags: Cartier, Far East, Hong Kong, Richemont, Ronen Shnidman, swiss watch, Van Cleef
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