Swiss based luxury group Richemont, owner of some of the world's finest luxury maisons such as Cartier, Baume & Mercier, Van Cleef & Arpels, Lancel, and IWC to mention a few as well as Net-a- Porter, posted solid sales results for the last 3 months up 24%.
As with many luxury companies the Asia/Pacific markets proved to be the greatest source of revenue (+36% sales) which can be attributed to the very strong demand in Hong Kong and mainland China in particular.
As we had hinted at in one of our earlier posts "God Save the .....Chinese" , sales in Europe, which includes Russia and the Middle East, appear to have received a significant boost from tourists who travel to Europe to purchase the luxury and designer goods.
The Americas region reported strong growth, resulting from growing demand for jewellery and watches as well as Net-a-Porter's performance. Sales in Japan increased albeit at a slower rate than the Group average.
Certainly a very positive outlook for the Richemont group. Mr Johann Rupert, Executive Chairman and Group Chief Executive Officer, made the following statement:
"The Group’s overall performance remains solid. The growth in sales reflects growing demand in Asia-Pacific, our Maisons’ creativity and the lasting appeal of our products.
As expected, the slowdown in sales growth relative to the first six months of the current financial year reflects a combination of more demanding comparative figures as well as the volatile and challenging economic environment. Sales in the month of December were 21 % above the prior period at actual and constant exchange rates.
The Group’s activities over the past nine months enable us to reconfirm our expectations that operating profit for the full year will be significantly higher than last year.”