Swiss luxury goods company Richemont has enjoyed a strong rise in sales off the back of healthy demand in the Asia Pacific region.
Sales at jewelry brands such as Cartier, Van Cleef & Arpels, and Buccellati improved by 19 per cent on a year-by-year comparison, reaching €3.6 billion ($AU5.95 billion) for the quarter.
Jewelery was the company’s best-performing division, while sales at watchmakers benefited from ‘thriving retail sales’.
Revenue from watch brands such as A. Lange & Söhne, Piaget, and Vacheron Constantin increased by six per cent to €1.06 billion ($AU1.75 billion).
While the rebounding market in China produced pleasing results, it wasn’t all good news for Richemont – with sales declining in the US amid concerns about inflation and cost-of-living pressures.
“The Swiss owner of Cartier reported a surprise drop in revenue from the Americas in the three months through June. While Richemont’s sales from Asia rose sharply, China reported slower-than-expected economic growth on Monday, signaling signs of a possible pullback in consumer spending,” writes Andy Hoffman of the Australian Financial Review.
“The luxury-goods industry has been counting on a rebound in China after that country’s reopening would make up for weakness in the US market. Now Richemont and its peers are contending with the prospect that its two main growth motors are weakening.
Group revenue increased 14 per cent on a year-by-year comparison to €5.32 billion ($AU8.79 billion).
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