Richemont Posts Higher Sales But Confirms Slowdown in Growth Trends -- Update

By Andrea Figueras

Richemont posted an increase in sales for its fiscal third quarter, but confirmed slowing growth faced by the luxury sector as a whole after the postpandemic shopping euphoria.

The Swiss luxury-goods company, which counts jeweler Cartier among its brands, booked sales of 5.6 billion euros ($6.09 billion) for the three months to Dec. 31, 8% higher at constant currency compared with the same period of the previous fiscal year.

Sales were above analysts' expectations of EUR5.49 billion, according to Visible Alpha consensus.

However, the company signaled a continued uncertain macroeconomic and geopolitical environment. Results show further slowdown in sales growth from a 12% increase at constant currency booked in the first half of the year. First-quarter sales increased 19% on year at constant-exchange rates.

The core jewelry division reported sales of EUR3.95 billion for the third quarter, up 12% at constant-exchange rates.

Asia-Pacific accounted for the largest part of group sales and reported growth of 13%, boosted by a 25% sales increase in Mainland China, Hong Kong and Macau, the company said on Thursday.

In Europe, sales fell 3% as higher sales to Chinese and domestic customers didn't compensate for an overall reduction in tourist spending, it said.

All distribution channels recorded sales growth except for the online retail channel where sales decreased 5%.

The company's e-commerce business Yoox Net-A-Porter, presented as a discontinued operation, posted a decrease in sales of 11% at constant-exchange rates for the quarter, reflecting a continued challenging environment for online distributors, Richemont said.

In December, the company said that it wouldn't complete a planned transaction involving YNAP with the British-Portuguese luxury e-commerce company Farfetch.

Write to Andrea Figueras at [e-mail]

(END) Dow Jones Newswires

January 18, 2024 02:38 ET (07:38 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.