Strong sales at jewellery stores lifts group’s retail performance.
Richemont’s jewellery brands continued to deliver growth in the third quarter of fiscal 2014, while trading in Europe was described as "satisfactory".
Jewellery sales delivered an uplift of 3% to €1.52 billion (£1.27bn) in the three months to December 31. Richemont said that its jewellery brands reported solid sales growth through monobrand boutiques and as such the group’s retail network performance benefitted.
Net-A-Porter, which sells jewellery, continued to deliver growth described as "well above the group average".
Total global sales at Richemont were up 3% to €2.94 billion (£2.45bn).
The group said that there was continuing demand for jewellery and watches but that wholesale channels delivered slower growth than retail due to caution amongst its business partners, mostly in the Asia Pacific region. Retail sales delivered growth of 7% to €1.66 billion (£1.38bn) while wholesale sales fell 2% to €1.28 billion (£1.07bn).
European sales were up 7% in the quarter, hitting €1.09 billion (£908.5m). Richemont described its European sales as "satisfactory" and said the market, along with the Middle East, continued to benefit from "visitors to the region’s major tourist destinations".
The Asia Pacific region delivered growth in all major markets except for China, where sales fell in the quarter, while domestic purchases in Japan remained strong but delivered weaker growth than the first half of the year. Sales in the Americas were described as "good" led by robust retail demand, particularly for jewellery through Net-a-Porter.