Richemont Group reports flat sales in China for the third quarter 2012
Richemont Group, the world’s second largest luxury group reports flat sales in China for the third quarter of 2012 ending 31 December 2012. Sales in the US registered solid growth while Europe registered moderate growth levels (1,01 billion euros). The jewellery maisons reported good sales growth in their own boutique networks. The retail network performance benefitted from strong jewellery sales. Total sales of jewellery maisons during the third quarter amounted to 1,4 billion euros, while sales of watches amounted to 784 million euros.
The Group’s specialist watchmakers performed well during the period. Retail sales through the Maisons’ own boutiques were the principal driver of growth. The overall increase of 9 % reflects good double-digit growth in most cases, although sales were lower for Maisons which are more focused on the Asia Pacific region and which had the strongest comparatives in the comparative period. Sales of the Montblanc maison were in line with the comparative period, with retail sales growth offsetting a decrease in sales to retail partners. In the Group’s other businesses, Net-a-Porter and Chloé reported good growth compared to the prior period.
At this stage, it is unclear how business patterns may develop and how the business in the Asia Pacific region will evolve in the near future. Richemont takes a long-term view in managing its business and will continue to invest in the development of its Maisons. Retail sales growth slowed compared to the 15 % growth rate seen in the six months to September.
Wholesale sales also slowed compared to the 8 % rate of the first six months, reflecting the caution of our retail partners and the less favourable retail environment, particularly in the Asia Pacific region.
The Group’s net cash position at 31 December 2012 amounted to some € 3.0 billion