Richemont Q1 Sales Climb On Strong Demand - Quick Facts

Swiss luxury goods group Compagnie Financiere Richemont AG (CFRUY.PK) reported Friday that its first-quarter sales grew 20 percent to 5.26 billion euros from last year's 4.40 billion euros.

Sales grew 12 percent at constant exchange rates.

All channels and business areas, as well as most regions, generated sales growth, despite an uncertain environment and demanding comparatives following a 129 percent sales rebound in the prior year comparable period.

The company noted that strong performance was driven by higher sales in Europe, Americas, Japan and the Middle East and Africa, which more than offsett lower sales in Asia Pacific.

Sales in Europe grew 42 percent on robust domestic demand and a return in tourist spending, primarily from American and Middle Eastern clients.

In the Americas, sales rose 25 percent driven by strong domestic spending. The US, Richemont's largest single market for the quarter, comprised 22 percent of Group sales.

Japan posted 83 percent growth in sales, supported by strong local demand.

In Asia Pacific, the strict enforcement of a zero covid policy led to double-digit sales declines in mainland China and Macau SAR (China) and to a single-digit sales reduction in Hong Kong SAR (China).

All channels recorded sales growth, with retail posting the strongest relative channel performance. Retail sales rose 18 percent, driven by double-digit increases across all business areas.

Retail now accounted for 58 percent of Group sales compared to 55 percent in the prior year period. Online retail sales increased 5 percent, reflecting muted sales progression at the Group's Online Distributors and strong growth at our Jewellery Maisons and Specialist Watchmakers.

Despite the disruption experienced in China, the Jewellery Maisons generated a 12 percent sales growth. The Specialist Watchmakers' sales increased 10 percent, driven by online and offline retail sales.

The company is scheduled to release interim results on November 11.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Unemployment data from Spain and producer prices from the euro area are due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, the National Institute of Statistics is scheduled to issue Romania's producer prices for August. Australia's central bank raised its benchmark rate by a quarter-point to bring inflation back to the target range. The policy board of the RBA, headed by Governor Philip Lowe, decided to lift the cash rate target by 25 basis points to 2.60 percent from 2.35 percent. This was the highest rate since... Activity in the U.S. manufacturing sector slowed by more than expected in the month of September but still saw continued growth, according to a report released by the Institute for Supply Management on Monday.
Follow RTT