Sales of jewellery across the Richemont Group’s roster of brands increased by 6% in the last five months, receiving an additional positive boost from favourable exchange rate fluctuations.
Jewellery sales on a constant exchange rate increased by 6% across the group, jumping 20% when considered with currency fluctuations. Richemont Group brands currently include Cartier, Van Cleef & Arpels and Piaget among others.
The luxury goods group’s watchmakers also saw sales dip by -1% at constant exchange rate, which were lifted to growth of 10% by the time exchange rates were factored in, mainly due to the US Dollar’s strength against the Euro.
The group’s in-house retail operation saw growth of +14% (constant) and +28% (adjusted) even without factoring in the group’s merger of Net-A-Porter Group with YOOX S.p.A. Richemont’s wholesale operation suffered a slide of -6% (constant), but was lifted to a gain of +5% once adjusted for currency.
Double digit sales increases in Europe and Japan managed to offset decreases in Asia Pacific and ‘soft demand’ in the Americas and Middle East. The growth in Europe and Japan was attributed to strong tourist numbers, strong boutique performance and the weakness of local currencies. Japan achieved incredible +48% (constant) +53% (adjusted) sales growth.
Richemont was not immune to the retail storm occurring in Hong Kong, with sales in Macau also down. But not even strong (not to mention encouraging) double digit growth in China could lift the Asia Pacific region out of negative territory of -18% (constant) and -2% (adjusted). Wholesale demand in the region was also down.