Richemont Reports 9% Increase in Q3 Luxury Sales

RichemontGeneva—Luxurygoods group Compagnie Financiere Richemont today reported that an increase in its third quarter sales due to a strong performance at retail in all regions.

For the quarter ended Dec. 31, 2013, Richemont posted a 9% increase at constant exchange rates (a 3% increase at actual rates). Total sales rose 2.8% to 2.941 billion euros (about $4 billion). Analysts’ average estimate expected 3.01 billion. A year ago, third quarter sales increase was 9.3%).

In its retail division, sales rose 14% to 1.66 billion euros, while wholesale sales were up 3% to 1.28 billion as retailers, especially in Asia-Pacific, were cautious.

By region, Europe and the Middle East posted a 9% gain in sales; the Americas were up 12% and Japan was up 13%. Asia Pacific’s sales rose 6%, apparently dragged down by lower sales in mainland China where austerity measures were put into place.

For the nine-months ended December, sales grew 9% at constant exchange rates or 4% at actual rates.

The company said the stronger euros against the dollar and yen had a negative impact on its reported sales.

Commenting on the report, Jon Cox, an analyst at Kepler Cheuvreux, said, “What was interesting was that wholesale was pretty weak while retail was pretty strong, so it is only a matter of time before the independents start reordering again.”

 

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com

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