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 andrea.figueras@wsj.com
(END) Dow Jones Newswires
January 18, 2024 02:38 ET (07:38 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
Why We Expect the Job Market’s Slowdown to Renew in 2024
-
5 Undervalued Stocks to Buy to Play a Little Defense
-
10 Top-Performing Dividend Stocks of the Month
-
Marathon Petroleum Earnings: No Change to Competitive Position, but Shares Look Expensive
-
Charlie Munger and How Not to Invest
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
After Earnings, Is AT&T Stock a Buy, a Sell, or Fairly Valued?
-
Mastercard Earnings: A Stable Environment Highlights the Firm’s Strengths
-
Pfizer Earnings: Solid Results Supported by Steady Tracking Toward $4 Billion In Cost Cuts
-
Starbucks Earnings: Not a Lot to Like About Results as Global Traffic Sputters