Richemont posts 12% Q1 sales increase as markets outside Asia grow
2022.07.15 09:37
FILE PHOTO: The logo of the luxury goods company Richemont is pictured at its headquarters in Bellevue near Geneva, Switzerland, June 2, 2022. REUTERS/Denis Balibouse
ZURICH (Reuters) -Luxury goods group Richemont said on Friday higher sales in Europe, the Americas, Japan and the Middle East offset lower sales in the Asia Pacific region during the three months to June, without giving an outlook for the rest of the year.
Demand for luxury watches and jewellery rebounded strongly after the COVID-19 pandemic, but a fresh round of lockdowns in China hit sales at rival Swatch Group (SIX:UHR) in April and May.
Richemont also felt the shortfall in mainland China, where its sales were 37% lower for the quarter.
But its overall sales growth of 12% at constant currency exceeded Swatch Group’s first-half growth rate of 7.4% thanks to Richemont’s higher exposure to the fast-growing jewellery category and an increasing share of own branded stores.
“The rate of decline (in mainland China) softened to 12% in June when restrictions were progressively eased,” Richemont, known for Cartier jewellery and IWC watches, said in a statement.
Sales grew 42% in Europe “sustained by robust domestic demand and a return in tourist spending, primarily from American and Middle Eastern clients”, while the Americas were up 25% driven by strong domestic spending, Richemont said.
