TRADING UPDATE
Asia demand lifts Richemont sales
The luxury goods retailer says that wholesale revenue declined while that from retail revenue grew, reflecting the shift from traditional retailers to online-based sales
Richemont, maker of Cartier watches, reported its fastest holiday sales growth in four years, boosted mainly by demand in Asia. A strong middle class and steady economic growth in that territory allows for consumers to spend on luxury and specialty items. In November, the Chinese government announced plans to cut tariffs for up to 187 products, citing the need to help consumers access quality and specialty products that were not widely produced locally. In a trading update released on Monday, the company said double-digit growth in Asia Pacific was driven by mainland China, South Korea, Hong Kong and Macau, bolstered by Jewellery Maisons and Specialist Watchmakers. Neil Brown, co-head of Electus Fund Managers said sometimes results looked good because of “base effects” and Asia, especially Hong Kong and Macau were being compared with a low base 12 months ago. However, growth in Asia Pacific in the wholesale channel was offset by declines in other regions as retailers struggled to re...
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