Richemont sales growth returns
Luxury goods company issues upbeat trading update on first sales spike since August 2015 period as global jewellery demand rises
It was a great festive season for Richemont as the luxury goods company surprised markets with an upbeat trading update for the quarter ended December, which sent the company’s share price soaring as much as 7.85% in intraday trade on the JSE. Richemont said on Thursday sales had increased by 5% at constant exchange rates in the period under review, with most regions showing growth driven by jewellery sales. Forecasts had been for flat growth for the company. This is the first time the Geneva-based group has recorded growth in sales since the five months ended August 31 2015. "The Christmas quarter was clearly ahead of expectations and especially the strong growth in Jewellery Maison is a very positive development, as this segment is by far the largest earnings contributor," analysts at Vontobel said. Measured at actual exchange rates, Richemont’s fastest-growing region in the December quarter was Japan, where sales grew 11% to €313m. Sales in its largest region, Asia-Pacific, were ...
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