Richemont Q3 sales up 5 percent

Richemont announced its trading statement for the third quarter ended December

31, 2012. Sales in the quarter increased by 5 percent at constant exchange rates and 9 percent at actual rates. The company showed a solid growth in the Americas but lower growth rates in other regions. Retail sales outperformed wholesale sales.

This performance was highlighted by robust jewelry sales and continued retail channel momentum. This was offset by a relatively weak wholesale channel, reflecting a cautious approach by the group’s retail partners in the watch business. In Europe, the performance was satisfactory: the growth in retail sales moderated during the quarter compared to the first six months of the financial year, whereas the wholesale trend seen in the first six months continued.

The Asia Pacific region showed several years of exceptional growth but this time sales in China in particular were flat compared to the demanding comparative figures for the same quarter last year. While wholesale sales growth was lower than in the first six months, and in the comparative period due to the cautious approach taken by the group’s retail partners in Hong Kong and mainland China, boutique openings contributed to the positive trend in retail sales. Sales growth in the Americas region improved further, with both retail and wholesale channels reporting solid demand. Sales in Japan grew by 2 percent, a slightly lower rate than that seen during the first six months of the year.

Retail sales growth slowed compared to the 15 percent growth rate seen in the six months to September. Wholesale sales also slowed compared to the 8 percent rate of the first six months, reflecting the caution of retail partners and the less favorable retail environment, particularly in the Asia Pacific region. Compared to the first six months, all business areas saw lower rates of growth.

Sales growth over the nine-month period to December was 9 percent at constant exchange rates or 17 percent at actual rates. The weakening of the euro against the dollar, in particular, had a positive impact on the group’s reported sales.

Richemont owns a portfolio of leading international brands or Maisons which are managed independently of one another, recognising their individuality and uniqueness. The businesses operate in four areas: Jewellery Maisons, being Cartier and Van Cleef & Arpels; Specialist watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, JaegerLeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren Watch and Jewelry joint venture; Montblanc Maison; and Other, being Alfred Dunhill, Chloé, Lancel and Net-a-Porter as well as other smaller Maisons and watch component manufacturing activities for third parties.