Richemont sales knocked by Asian performance - CNBC Africa

Richemont sales knocked by Asian performance

Earnings

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Richemont sales flatten in third quarter. PHOTO: watchpro

The growth in Europe, Middle East and the Americas was counterbalanced by the significant decline of sales in the Asia Pacific.

Challenging trading environments in the market, mainly in Hong Kong and Macau, contributed to the decline in sales in Asia Pacific.  While in Europe, sales were boosted by strong domestic sales and tourism.

(READ MORE: Richemont founder returns as sales growth falters)

Positive growth was reported in the Americas, attributed to jewellery and the Net-a-Porter Group. Japan reported a soft domestic demand due to the impact of the rise in purchases made before the April 2014 sales tax increase, this lead to a 47 per cent sales increase.

“The period's overall performance reflected a demand for jewellery, particularly through the retail channel. Retail continued to outperform the wholesale channel. Retail sales were supported by selective store openings, jewellery sales and Net-a-Porter.”

The retail network showed improvement enhanced mainly from jewellery sales.

(READ MORE: Taste acquires luxury Swiss watch retailer)

The decrease in sales by the group's Specialist Watchmakers reflected carefulness by business partners in wholesale and a lesser performance of some retailers.

In the quarter, sales were at a constant flat exchange rate, however, increased at 4 per cent at actual rate.  The group's net cash position at 31 December 2014 amounted to EUR 4.9 billion.

Richemont results for the current financial year are said to be announced on Friday, 22 May.

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