Cartier owner Richemont sales rise as China demand holds while US softens
RICHEMONT reported higher first-quarter sales as a rebound in China outweighed a decline in the Americas.
Sales rose 19 per cent on a constant-currency basis to 5.3 billion euros (S$7.9 billion), the Cartier owner said on Monday (Jul 17), in line with analyst expectations. Revenue rose 40 per cent in the Asia-Pacific region and unexpectedly fell 2 per cent in the Americas.
The luxury-goods industry is depending on a bounceback from China to counter a slowdown in the US, which Chairman Johann Rupert said in May is at risk of a downturn. Last week, Burberry Group reported a drop in revenue from the Americas as the low end of the luxury market in the US weakened.
Richemont’s report highlighted some weakness in US demand and for luxury watches, even as Cartier and Van Cleef & Arpels jewellery remains strong. The Swiss company said its jewellery sales increased 24 per cent, meeting analyst expectations, while its specialist watchmaker division reported sales growth of 10 per cent at constant currencies, slightly below analyst consensus forecasts.
Rival Omega maker Swatch Group reported stronger-than-expected first-half results last week.
Richemont said an 11 per cent sales increase in Europe was driven mainly by resilient domestic spending as well as tourism from the US, the Middle East and China.
Richemont is in a strong position to gain further market share, wrote Jean-Philippe Bertschy, an analyst at Vontobel. “Negative growth in the Americas is likely to temper some of the market expectations.” BLOOMBERG
Share with us your feedback on BT's products and services
