Richemont 3Q Dampened by China's Pandemic Outbreak, But Tourist Spending Boosts Europe Sales

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 [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

January 18, 2023 01:36 ET (06:36 GMT)

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