Luxury fashion group Richemont has reported sales growth of 8 per cent to US$6 billion for its third quarter ended December 31, on the back of China’s retail recovery.
Sales for the nine months ended December 31 surged 11 per cent, primarily driven by Japan, Asia Pacific and the Americas.
Performance in Asia Pacific – where sales jumped 13 per cent – was fuelled by the 25 per cent sales growth of the Mainland China, Hong Kong and Macau businesses, more than offsetting softer performance in other Asian markets. The group posted the sharpest sales growth in Japan with 18 per cent increase in sales during the quarter as domestic and tourist spending, especially from Chinese clients, surged.
Sales in Europe were 3 per cent lower as higher sales to Chinese and domestic clientele did not compensate for an overall reduction in tourist spending, the company said in a statement. Sales in the Americas were up by 8 per cent during the period.
All product categories reported increased sales, with the jewellery maisons and specialist watchmakers performing the best, raising their contribution to 71 per cent of group sales. Group online sales fell by 5 per cent.
Last month, the luxury group said it had scrapped the deal to sell a 47.5 per cent stake in Yoox-Net-a-Poter (YNAP) to Farfetch following the announcement of New York-listed South Korean e-commerce giant Coupang to rescue Farfetch Holdings from the brink of bankruptcy.