Moodie Davitt snapshot: Richemont third-quarter sales
– Sales up +7% (constant exchange rates) to €3.12 billion
– Retail sales +13%
– Wholesale -3%
– Double-digit growth in Asia Pacific and MEA (+11%); Americas +8%
– Europe tougher, down -1%
– Jewellery maisons +11% to €1.83 billion
– Nine-month sales up +10%
Source: The Moodie Davitt Report
Swiss luxury goods group Richemont has reported a +7% increase (at constant exchange rates) in sales for the third quarter ended 31 December 2017.
Sales reached €3.12 billion with all regions except Europe registering growth.
A continued double-digit increase in retail sales (+13%) was driven by jewellery and watches. Wholesale sales decreased by -3%.
The other businesses posted stable sales, with growth notably from Montblanc, Chloé and Lancel. “Excluding the impact of the sale of Shanghai Tang, the other businesses would have recorded moderate growth,” said Richemont.
Sales by region
Double-digit growth in Asia Pacific (+11%) was driven by Mainland China, South Korea, Hong Kong and Macau.
Sales in Europe declined -1%, partly due to the strength of the Euro and “challenging comparatives in the UK”, said Richemont.
The Americas posted an +8% sales increase, attributed to a strong performance by the jewellery houses.
A +5% rise in sales in Japan was supported by strong growth from the specialist watchmakers and a favourable currency environment.
Sales in the Middle East & Africa grew by +11%, benefitting from favourable currencies, the internalisation of external points of sales and the anticipated introduction of value added tax in the UAE (implemented on 1 January 2018), noted Richemont.
Ninth-month sales buoyant
Sales over the nine-month period to December increased by +10% at constant exchange rates (+7% at actual exchange rates). This continued the positive trend seen in the first six months.
As reported, Richemont recently increased its stake in Dufry to +7.5%. Richemont initially acquired a 5% stake in the travel retailer in May 2017.