- Prachi Singh |
Sales at Richemont SA, for the third quarter ended December 31, 2017, increased by 7 percent at constant exchange and by 1 percent at actual rates to 3,119 million euros (3,727 million dollars) compared to the prior year period. The company said, most regions grew at constant exchange rates, with sustained double digit growth in Asia Pacific and continued double digit increase in retail sales was driven by the jewellery maisons and specialist watchmakers. In Europe, Richemont added, the strength of the euro and challenging comparatives in the United Kingdom weighed on sales, which declined by 1 percent.
Richemonth’s Q3 performance across geographies
Double digit growth in Asia Pacific, Richemont said, was driven by mainland China, Korea, Hong Kong and Macau with the performances of the jewellery maisons and specialist watchmakers particularly noteworthy in this region. The 8 percent growth in the Americas region reflected good performance from the jewellery maisons.
Sales in Japan rose 5 percent supported by strong growth from the specialist watchmakers and a favourable currency environment, while sales in the Middle East and Africa rose by 11 percent, also benefitting from favourable currencies, the internalisation of external points of sales and the anticipated introduction of a value added tax in the UAE.
Retail sales maintained strong momentum, recording double digit growth of 13 percent at constant exchange and 7 percent at current exchange to 1,983 million euros (2,369 million dollars), underpinned by solid performances from the jewellery maisons and specialist watchmakers. Wholesale sales decreased by 3 percent at constant exchange and 8 percent at current exchange to 1,136 million euros (1,357 million dollars). Growth in Asia Pacific in the wholesale channel, the company said, was offset by declines in other regions.
The jewellery maisons delivered the strongest sales progression, with an 11 percent increase at constant exchange and 5 percent at current exchange to 1,829 million euros (2,185.5 million dollars), reflecting strength in the retail channel. The specialist watchmakers’ performance, positive 1 percent at constant exchange while negative 4 percent at current exchange to 781 million euros (933 million dollars), was subdued, reflecting the continued monitoring of sell-in versus sell-out in the wholesale channel. Wholesale sales declined, offsetting double-digit growth in retail.
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, Richemont added, would have recorded moderate growth.
Sales over the nine-month period to December 31, the company added increased by 10 percent at constant exchange rates and by 7 percent at actual exchange rates to 8,724 million euros (10,423 million dollars), continuing the positive trend seen in the first six months of the financial year.