Richemont 3Q Sales Turn Positive as Asia, Online Offset Europe Woes

By Joshua Kirby

Compagnie Financiere Richemont SA's revenue rose in its third quarter, as e-commerce and sales in Asia helped mitigate a continued tough environment in Europe, turning revenue positive after a steep decline previously in the year.

Revenue came to 4.19 billion euros ($5.08 billion) in the three months to Dec. 31, the Swiss luxury-goods conglomerate said, up 5% at constant currency from EUR 4.16 billion in the same period the previous year. The group had posted a sales decline of 26% in the first half of its fiscal year.

Analysts had seen 3Q revenue at EUR4.01 billion, according to a consensus of five estimates provided by FactSet.

Asia-Pacific excluding Japan drove the result with a 25% increase in sales to EUR1.73 billion, Richemont said, including a "robust" 80% increase in China. Sales in the Americas region were close to flat on-year at EUR841 million, while Europe saw a decline of 20% to EUR982 million from EUR1.26 billion previously. This was due to pandemic-related restrictions and a continued lack of tourism, Richemont said.

Online retail sales meanwhile booked 17% growth, and store retail also grew, offsetting an 8% decline in wholesale, Richemont said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

January 20, 2021 01:42 ET (06:42 GMT)

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