Richemont sees "continued strength" across Europe in Q3 sales

Despite a resurgence of COVID-19 in Mainland China causing "significant disruption to trading", Richemont has reported an 8% increase in sales for Q3.

For the three months ending 31 December 2022, the group saw sales growth across all regions with the exception of Asia Pacific.

Japan continued to lead growth with sales up 43%. This was followed by Europe where sales increased 19%, due to "continued strength" in local and tourist demand.

Richemont, owners of Cartier and Chloé, also reported growth across all distribution channels, with retail and online sales up 6% each. Wholesale sales were 1% above the prior-year period, but were "adversely impacted" by trading in Asia Pacific.

Sales from the group's jewellery businesses were up 8%, primarily driven by "strong" jewellery sales across Buccellati, Cartier and Van Cleef & Arpels.

Watch sales increased, whilst specialist watchmakers sales dropped 5%. This reflects double-digit declines in Asia Pacific, which accounted for close to half of the specialist watchmakers' sales, more than offsetting double-digit increases in Europe and Japan.

The group’s other business area, which includes fashion and accessories, delivered 6% sales growth. This was driven by higher sales across most businesses, in particular at Alaïa and Peter Millar.

Last year, Richemont sold a majority stake of Yoox Net-a-Porter to Farfetch and an Emirati investor. The transaction will see Farfetch pay Richemont between 53 to 58.5 million Farfetch shares, as well as an additional $250 million worth of shares five years after the deal is completed, acquiring 47.5% of Yoox Net-a-Porter.

Adding new context to the deal, Johann Rupert, Richemont Chairman, previously said: "The agreement for Farfetch and Alabbar to acquire 47.5% and 3.2% of YNAP, respectively, leaving Richemont holding 49.3%, will realise my long-standing goal of making YNAP a neutral industrywide platform, with no controlling shareholder. In exchange, Richemont will receive Farfetch shares, expected to represent 12-13% of Farfetch’s issued share capital, to further align interests."