Switzerland-based luxury conglomerate Richemont has issued its trading update for the quarter ended 31 December 2019. Richemont announced that at EUR 4,156 million, sales in the quarter rose 6% at actual exchange rates and 4% at constant exchange rates. The business statement was particularly awaited, considering the situation in Hong Kong, a major business hub for the watch industry.
Richemont’s Performance across business areas, geographies and distribution channels
(At constant exchange rates) – During the quarter ended 31 December 2019, sales progressed for the major business areas lead by the Jewellery Maisons with sales up 6%. For what is our main concern, here at MONOCHROME, Specialist Watchmakers sales rose 2% despite the challenging situation in Hong Kong. Last, online distributor sales progressed by 2% at actual exchange rates.
Most regions posted higher sales, with the exception of Japan (at -7%). The performance was particularly strong in Europe (+9%) and the Americas (+5%). The increase was of +2% for Asia Pacific, impacted by the complex situation in Hong Kong. Yet, the strong growth in China and Korea has more than offset the marked contraction.
As far as distribution channels are concerned, the progression for retail (+5%) and online retail (+5% at actual exchange rate) outperformed wholesale that was in line with the prior year.
Richemont’s Performance over nine months
Sales over the nine-month period to December increased by 8% at actual exchange rates and by 5% at constant exchange rates, broadly in line with the trend seen in the first six months of the Richemont financial year.
Richemont will announce its annual results on May 15th, 2020. For more details, please visit www.richemont.com.