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Richemont’s 3Q Sales -4% Ex-Currency as Jewelry Outperforms Watches
Jan 14, 2016 7:57 AM
By Rapaport News
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RAPAPORT... Richemont reported revenue – measured at constant
exchange rates – declined 4 percent year on year in the third quarter that
ended December 31 even as jewelry sales grew in most regions and product
categories. Demand for watches was weak.
The slowdown
reflected weaker trading in Europe than in the previous six months and
continued challenging conditions in the Asia-Pacific region.
Total sales at actual rates during the three months increased 3 percent to
$3.19 billion (EUR 2.93 billion), the Switzerland-based luxury group said in a
statement January 14.
The U.S. dollar, Japanese yen and
Swiss franc all strengthened against the euro during April-December 2015, compared
with the same period in the previous year, propping up actual figures for the
company, which reports in the European coinage.
Asia-Pacific
sales fell 9 percent to $1.13 billion ex-currency as demand for watches
continued to contract but the rate of sales continued to improve in mainland
China. Sales in Hong Kong and Macau were significantly lower, mirroring many
luxury retailers’ performance in the region in recent quarters.
Good demand for jewelry products helped limit the decline at
Richemont’s maisons, whose sales still dipped 5 percent ex-currency to $1.75
billion on weak watch demand. The group’s specialist watchmakers – where
revenue dipped 4 percent ex-currency to $901.5 million – suffered from caution
in the wholesale channel, especially in Hong Kong, Macau and the Americas.
During the nine months to December 31, sales growth was flat
at $9.55 billion at constant exchange rates but increased 11 percent at actual
rates. Revenue from the jewelry maisons increased 2 percent ex-currency to
$5.21 billion.
The challenging environment is likely to
prevail in the fourth quarter to March 31, the company added.
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Tags:
asia pacific, data, Europe, luxury goods, Rapaport News, retail, retail sales, Richemont
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