Oliver Q
1
All posts from Oliver Q
Oliver Q in European Markets,

Richemont Sales Growth Accelerates on Japanese, European Demand

Richemont, the world’s biggest jewellery maker, said five-month sales accelerated amid higher demand in Japan and Europe.

Richemont chairman Johann Rupert | Source: Bloomberg

PARIS, France — Richemont, the world’s biggest jewellery maker, said five-month sales accelerated amid higher demand in Japan and Europe.

Sales increased 4 percent excluding currency shifts in the five months through August, the Geneva-based company said in a statement Wednesday. Analysts expected a 1 percent gain, according to the median estimate in a Bloomberg survey. Revenue rose 1 percent on that basis in its past financial year.

The results mirror comments by peers in the luxury business, such as Hermes International SCA, which reported higher first-half sales, fueled by an acceleration in Japan. LVMH Moet Hennessy Louis Vuitton SE in July posted strong revenue growth in Europe and the U.S., which helped offset a decline in China, Macau and Hong Kong.

Richemont said sales in Japan rose 48 percent. In Europe, revenue gained 26 percent.

Richemont said sales in the Asia-Pacific region dropped 18 percent, compared with the median analyst estimate for an 11 percent decline.

The Chinese government has been discouraging exuberant spending among officials since 2012.

The company reports five-month sales figures each year on the day of its annual meeting with shareholders.

Shares in the company, whose full name is Cie. Financiere Richemont SA, have slumped 19 percent this year. Swatch Group AG has dropped 16 percent.

By Corinne Gretler; editors: Matthew Boyle, Thomas Mulier, Phil Serafino.