Richemont 3Q Dampened by China's Pandemic Outbreak, But Tourist Spending Boosts Europe Sales
18 January 2023 - 5:51PM
Dow Jones News
By Joshua Kirby
Compagnie Financiere Richemont SA on Wednesday said sales growth
slowed in its fiscal third quarter against tough comparison bases
and with demand in China hit by further Covid-19 disruption.
The Swiss luxury-goods group, owner of jewelers Cartier and Van
Cleef & Arpels, made sales of 5.40 billion euros ($5.83
billion) in the three months to Dec. 31, 5% higher at constant
currency than in the same period last fiscal year. This came short
of the EUR5.66 billion forecast by analysts polled by FactSet, and
represents a slowdown from the 16% organic growth booked in the
first half of the year.
The core jewelry division led growth with an 8% increase in the
quarter, Richemont said.
Asia-Pacific revenue, excluding Japan, slipped by 9% on year
amid a resurgence of the Covid-19 pandemic in China, Richemont
said. Sales in the country were down 24% on year amid strangled
demand and shorter opening hours, the company said.
Sales in the Americas rose 3%, reflecting a larger share of
purchases abroad as a result of the strong U.S. dollar, the company
said. Europe sales meanwhile rose by 19% on the back of tourist
spending, as well as good local demand, the company said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
January 18, 2023 01:36 ET (06:36 GMT)
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