Thanks to solid growth in Asia, the Swiss luxury goods group Compagnie Financière Richemont SA (Richemont) was able to achieve an increase in sales in the third quarter of the 2023/24 financial year.
According to an interim statement published on Thursday, group sales from continuing operations amounted to 5.59 billion euros in the period from October to December, which corresponded to an increase of four percent compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenue grew by eight percent.
The group benefits from the strong demand for jewelry
The group’s jewelry division achieved an increase of six percent (currency-adjusted +12 percent) to 3.95 billion euros, while sales in the watch segment fell by one percent (currency-adjusted +3 percent) to 939 million euros. The other business areas, which also include the group’s fashion houses, came to a total of 702 million euros and were therefore four percent below the level of the previous year (-1 percent adjusted for currency effects).
Sales development was slowed by declining demand in Europe. The group’s revenue there fell by four percent (-3 percent adjusted for currency effects) to 1.23 billion euros. The company attributed the decline not least to lower spending by international tourists.
Losses in Europe are more than offset by sales increases in Asia and America
However, things went up in the other market regions: In Japan, quarterly sales rose by eight percent (currency-adjusted +18 percent) to 514 million euros, in the rest of the Asia-Pacific region by eight percent (currency-adjusted +13 percent) to 2.05 billion euros. In America, revenues grew by three percent (currency-adjusted +8 percent) to 1.35 billion euros, in the Middle East and Africa they increased by five percent (currency-adjusted +10 percent) to a total of 449 million euros,
The results of the e-commerce division Yoox Net-A-Porter Group (Ynap), which is up for sale, are not included in the current figures. Due to turbulence at prospective buyer Farfetch, Richemont canceled an already agreed transaction in December. According to the group, Ynap’s sales fell by 14 percent in the third quarter (-11 percent adjusted for currency effects).