A dip in sales among Richemont group’s watch brands during the past five months received a positive boost from favourable exchange rate fluctuations.
The luxury goods group’s watchmakers saw sales dip by -1% at constant exchange rate, which were lifted to growth of +10% by the time exchange rates were factored in, mainly due to the US dollar’s strength against the euro.
The group’s in-house retail operation saw growth of +14% (constant) and +28% (adjusted) even without factoring in the group’s merger of Net-A-Porter Group with YOOX S.p.A.
Richemont’s wholesale operation suffered a slide of -6% (constant), but was lifted to a gain of +5% once adjusted for currency.
Double digit sales increases in Europe and Japan managed to offset decreases in Asia Pacific and ‘soft demand’ in the Americas and Middle East. The growth in Europe and Japan was attributed to strong tourist numbers, strong boutique performance and the weakness of local currencies. Japan achieved incredible +48% (constant) +53% (adjusted) sales growth.
Richemont was not immune to the retail storm occurring in Hong Kong, with sales in Macau also down. But not even strong (not to mention encouraging) double digit growth in China could lift the Asia Pacific region out of negative territory of -18% (constant) and -2% (adjusted). Wholesale demand in the region was also down.