FashionRichemont’s China Sales Fall 27%

Richemont’s China Sales Fall 27%

-

spot_img

[ad_1]

Richemont’s revenues dipped by one percent as demand collapsed in China, Hong Kong and Macau. Sales in the region tumbled 27 percent in the six months through September, the Swiss luxury group said Friday.

In China, a lacklustre recovery from the coronavirus pandemic is dampening the economic optimism that typically drives luxury purchases. “The confidence factor is probably the most important; it is maybe at an all-time low. We have no clue how long it will last and don’t know if we’ve reached the bottom or not,” Richemont CEO Nicolas Bos said.

The dramatic decline in China offset resilience in other regions. Sales in Japan jumped by 42 percent at constant exchange rates, while sales in the Americas grew by 11 percent (10 percentage points faster than rival LVMH’s recent performance in the region). Europe sales increased by 4 percent, the Middle East and Africa by 11 percent.

Jewellery brands Cartier and Van Cleef & Arpels remain the bread-and-butter business of Richemont. Jewellery revenues increased by 2 percent despite the slowdown in China.

But sales for Richemont’s watchmaking unit, which includes brands like IWC and Jaeger-Le Coultre, slumped by 17 percent, taking a huge hit from decreased Chinese demand. “We see far better demand in the rest of the world…especially on the high end.” Bos observed. Watch sales were flat in North America and fell slightly in Europe.

Richemont reported 2 percent growth for fashion and accessories, citing rising sales at Alaïa and Peter Millar that offset declines at Chloé, Delvaux and Dunhill. The segment reported an operating loss of €23 million, “reflecting variedperformances and ongoing strategic investment to boost desirability and visibility,” Richemont said.

New designer Chemena Kamali’s first two collections for Chloé have been well received by press and gave a clear direction for marketing and merchandising, with renewed focus on supercharged femininity and Parisienne style, but sales have yet to pick up overall.”We are working to reposition where Chloé is going. The business today does not fully reflect the attractivity of the Chemena’s collections,” said Bos.

The group posted a €1.3 billion loss from discontinued operations, mainly due to write-down on the value of e-commerce unit Yoox Net-a-Porter (YNAP), which will need to be recapitalised prior to an agreed sale to German rival MyTheresa.

Learn more:

Gucci-Owner Kering Slumps to 2017 Low on China Demand Fears

Kering SA’s stock plunged to a seven-year low on Monday, with analysts downgrading the Gucci owner amid concerns over weak demand in China, marking a sharp decline in the luxury sector.

[ad_2]

Source link

Latest news

How to Make Real Money With 92 Pak Game

Understanding the Basics of 92 Pak Game 92 Pak Game has gained massive popularity among mobile gamers in Pakistan, primarily...

How UFABET Supports Multilingual Customer Service

In the increasingly globalized world of online betting, providing excellent customer service that caters to a diverse audience is...

Ceritafilm Offers a Journey Through Reviews and Downloads

Explore the World of Cinema Through a Comprehensive Lens For movie enthusiasts who crave more than just a surface-level understanding...

Soft Play Bus Essex for Weddings – Keep Kids Entertained

When planning a wedding, ensuring that every guest enjoys themselves is a priority. However, one challenge many couples face...
spot_img

Luxury on the Move: The Pamper Bus Experience for Children’s Parties

A Glamorous Celebration on Wheels Bringing luxury and fun to your doorstep, the pamper bus is revolutionizing the way children's...

Affordable Luxury Awaits: Grace Bay Turks and Caicos Beachfront Escapes

A Paradise Destination Without the Price Tag Grace Bay Turks and Caicos has long been known as a dream destination...

Must read

How to Make Real Money With 92 Pak Game

Understanding the Basics of 92 Pak Game 92 Pak Game...

How UFABET Supports Multilingual Customer Service

In the increasingly globalized world of online betting, providing...
spot_img

You might also likeRELATED
Recommended to you