Richemont sales reveal lower watch demand in China

Richemont has announced that its sales for the five months ended August 31, 2013, increased by 9% at constant exchange rates. Lower watch sales in China were offset by a good performance for jewellery in the Americas. Montblanc’s sales were flat.

In a statement about five months of sales ahead of its Annual General Meeting, which takes place today, Richemont has revealed that its sales for the five months ended August 31 increased by 9% at constant exchange rates and by 4% at actual exchange rates, citing the weakening of the US Dollar and the Yen against the Euro as having had a negative impact.

In a statement, Richemont, which includes watch brands Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc, said that sales growth was satisfactory across all regions.

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Middle-Eastern sales continued to benefit from tourists and Asia-Pacific was led by good growth in Hong Kong and Macau, offset by lower sales in mainland China, which the company said largely reflected a "prudent consumer sentiment after several years of exceptional expansion".

Sales growth in the Americas was strong, which was mostly credited to jewellery sales. Sales growth in Japan was robust too.

Retail sales growth was said to have continued to outperform wholesale sales, reflecting a good performance in the brands’ existing boutiques as well as the opening of new ones, primarily in Europe, Middle-East and Asia-Pacific.

The statement added that the specialist watchmakers performed well in an uncertain economic environment but that Montblanc’s sales were flat, which the statement explained as: "the Maison being less exposed to tourist purchases than many of the group’s other businesses".

Within ‘Other’ sales, Net-a-Porter reported double-digit growth.

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