Richemont Stock Up On Higher Q3 Sales

Shares of Compagnie Financiere Richemont AG were gaining around 2 percent in Swiss trading after the luxury goods group reported that its third-quarter total sales rose about 1 percent on a reported basis and 5 percent at constant exchange rates, despite a continuously volatile environment.

In its trading statement, the company said its third-quarter sales reached 4.19 billion euros, higher than 4.16 billion euros in the prior year.

Richemont generated double digit growth in sales in Asia Pacific and the Middle East and Africa, which more than offset single digit declines in the Americas and Japan and a marked contraction in Europe.

In Asia Pacific, sales were 1.73 billion euros, up 21 percent on a reported basis and 25 percent at constant exchange rates. The results reflected 80 percent rise in China and 29 percent growth in Taiwan that more than offset declines in other Asian locations.

In Europe, sales fell 22 percent, affected by renewed public health protection measures and a halt in tourism. In the Americas, sales fell 4 percent on a reported basis, but grew 3 percent at constant rates, supported by relatively strong domestic sales.

Middle East and Africa sales grew 20 percent, driven by good performance across channels, resumed tourist spending in Dubai and solid domestic spending, notably in Saudi Arabia.

Sales in Japan declined 2 percent on a reported basis, but rose 1 percent at constant rates, benefiting from resilient local demand before public health measures were re-instated in major population centres.

Both retail and online retail sales climbed 13 percent each, while Wholesale & royalty income fell 12 percent.

Among business areas, Jewellery Maisons sales grew 9 percent from last year to 2.37 billion euros supported by good jewellery and watch sales at Cartier and Van Cleef & Arpels. Meanwhile, Specialist Watchmakers dropped 7 percent with declines in all regions excluding Asia Pacific, and online distributors were flat.

The company’s net cash position at December 31, 2020 amounted to 2.9 billion euros, compared to 2.4 billion euros in 2019.

The company’s results for the current financial year will be announced on May 21.

In Switzerland, Richemont shares were trading at 85.16 Swiss francs, up 1.94 percent.

Source: Read Full Article