Richemont Q3 sales up 8 percent despite Covid impact in mainland China

Swiss luxury giant Richemont has reported an 8 percent increase in sales in the third quarter of the year despite a resurgence of Covid impacting its important mainland China market.

Total group sales came in at 5.4 billion euros in the three months to December 31, up from the 4.98 billion euros reported a year earlier.

On a constant currency basis, sales were up 5 percent as tourism returned in force following the end of most restrictions in international markets. Excluding the impact from Russia, sales rose by 7 percent at constant exchange rates.

The group, whose portfolio includes Chloé and Cartier, saw its strongest growth once again in Japan, where sales jumped 30 percent, followed by Europe where sales rose 17 percent.

International tourism boosts Richemont in Q3

In Europe, growth was driven by continued strength in local and tourist demand, particularly from the US and the Middle East. France, Italy, and Switzerland were standout performers.

In the Middle East and Africa sales increased 20 percent, and in the Americas sales rose by 16 percent.

The only region where Richemont recorded a drop in year-on-year sales was Asia Pacific, which was down 7 percent. The region was “significantly impacted” by Covid restrictions in mainland China, where sales dropped 24 percent.

Overall sales increased across all distribution channels, with online retail sales up 12 percent, physical retail sales up 9 percent, and wholesale and royalty income up 5 percent.

In terms of business area, sales across Jewellery Maisons increased by 11 percent, and in ‘Other’ - which includes fashion and accessories brands - by 10 percent. Sales at Specialist Watchmakers dropped 3 percent.

For the nine-month period, group sales increased 18 percent, or up 12 percent at constant exchange rates.