• Switzerland's news in English
Richemont sales dip as luxury spending slumps
Photo: Richemont

Richemont sales dip as luxury spending slumps

AFP · 14 Jan 2016, 14:29

Published: 14 Jan 2016 14:29 GMT+01:00

Facebook Twitter Google+ reddit

Richemont, second only to France's LVMH in the luxury world, said its sales during the October to December period had fallen four percent to €2.9 billion ($3.2 billion), not counting currency fluctuations.

Thanks to the shrinking value of the euro, the owner of such brands as Cartier and Piaget, meanwhile posted a three-percent hike in sales once currency shifts were factored in.
Sales in Europe meanwhile shrank three percent during the quarter in constant currencies, after soaring during the first half of the 2015/16 financial year.
Richemont said the slump reflected "lower levels of tourism in the region."
And the company acknowledged that "the challenging trading environment is likely to prevail in the final quarter."
Following the news, Richemont saw its share price fall nearly three percent to 63.50 francs a piece in afternoon trading on the Swiss stock exchange, as the main SMI index was down 2.2 percent.
The quarter, which is third in Richemont's accounting year, is vital to the luxury goods maker since it covers the all-important holiday season, and was marked by the deadly November 13th attacks in Paris and they impact they had on tourism, observers said.
Citigroup analyst Thomas Chauvet pointed out in a note that France alone accounts for nine percent of the group's global sales and around 25 percent of its European sales.
The Swiss-based company, which owns top global brands such as Jaeger LeCoultre, Van Cleef & Arpels and IWC, also lamented that the market in the Asia Pacific region remained "challenging" and "impacted by the continued contraction in watch demand."
Richemont saw its sales in the region — long the driver of global luxury sales growth — continue their recent descent and plunge nine percent during the third quarter.
The company stressed though that although Hong Kong and Macao remained hard-hit, the market in mainland China was improving.
Japan meanwhile stood out with a nine-percent uptick in sales during the quarter, the company said.
"The Christmas quarter sales were slightly below our expectation with Europe being weaker but Asia showing a first sign of improvement," Vontobel analyst Rene Weber said in a note, stressing though that Hong Kong remained "strongly down."
Richemont's share price, which last year crumbled 19 percent over concern over slowing growth in the Chinese economy, has shed nine percent more since the beginning of January.

For more news from Switzerland, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Swiss woman wins headscarf court battle
Photo: Jack Guez / AFP file picture

A Swiss court has ruled against a company that fired a longtime employee after she began wearing the Muslim headscarf, marking one of the first such rulings in Switzerland, media reported Sunday.

Montreux throws hat in Olympic rings
Could Montreux host the 2026 Games? Photo: Ivo Scholz/Swiss Tourism

Montreux is to put itself forward as the host city for the 2026 winter Olympics as part of a potential bid by the cantons of Valais and Vaud.

Geneva car share scheme could help reduce city traffic
Catch a Car is aimed at short hops within a city. Photo: Catch a Car

Catch a Car, already in Basel, launches in Geneva next month.

Swiss women will ‘work for free’ for the rest of year
Female employees in Switzerland earn 19.3 percent less than their male colleagues. File photo: Randy Kashka

Switzerland's gender pay gap means from today, Friday October 21st, women in the country will effectively be working for free for the rest of 2016.

Swiss luxury watches stolen in Paris raid
Police outside the Girard-Perregaux watch store on Thursday. Photo: Bertrand Guay/AFP

The 10 Girard-Perregaux watches are worth half a million euros in total.

Brother-in-law arrested over murder of Swiss teacher
The victim worked in a school in Stabio, near the town of Mendrisio. Photo: Oliver Graf

The primary school teacher was found dead in Ticino earlier this week.

Inside Switzerland’s largest nuclear bunker – 40 years on
Designed to house 20,000 people, the bunker was built in and over two motorway tunnels. Photo: Unterirdisch Ueberleben

The Local takes a tour of the Sonnenberg bunker in Lucerne, opened 40 years ago at the height of the Cold War.

Ten Swiss ski resorts named most expensive in Europe
File photo: Renato Bagattini/Swiss Tourism

Skiers in Switzerland pay the highest prices for their ski passes of anywhere in Europe, according to research.

Eco group fights Bern over wind farm plans
There are currently more than 30 wind farms in Switzerland. Photo: Alpiq

Wind turbines are “gigantic and destructive” machines, says Paysage Libre Suisse.

Vegan wins battle to be accepted by Swiss army
Antoni Da Campo will now carry out his military service. Photo: Antoni Da Campo

A Swiss man who was told he would not be accepted for military service because of his strict veganism has finally succeeded in making the army change its mind.

Sponsored Article
How to vote absentee from abroad in the US elections
Photo: Richard Juilliard/AFP
Man makes Geneva airport bomb threat ‘for a joke’
Sponsored Article
Last chance to vote absentee in the US elections
Photo: AFP
Solar Impulse team reveals plans for unmanned plane
File photo: Martin Abegglen
Swiss to vote on passport rules for 3rd gen foreigners
Sponsored Article
How to vote absentee from abroad in the US elections
Photo: AFP
Swiss wingsuit hotspot Lauterbrunnen won’t impose ban
Photo: Swiss Tourism
Six reasons Switzerland isn’t as boring as you might think
Photo: Swiss Tourism
Report: Switzerland one of world’s best places for girls
Photo: The Local
Thief returns Swiss cow bells worth thousands
File photo: Wikimedia Commons
One in three rapists isn’t locked up: statistics
Photo: activistin.ch
Tampon-tax protest turns Zurich fountains red
Photo: AFP
Geneva police to lift ban on bearded officers
Photo: Marcel Gillieron/AFP
Suicide chef’s restaurant keeps Michelin stars
Photo: Lara de Salis
11 things the Swiss get tired of hearing abroad
Photo:  Ivo Scholz/Swiss-image.ch
Survey: expats in Switzerland have money but few friends
Photo: AFP
Swiss press criticize Bern’s 'capitulation' on immigration
Photo: Jura Trois Lacs tourism
German ex-policeman is Swiss city’s new hermit
Photo: Dmitry A. Mottl
Ticino votes to favour local workers over foreigners
Photo: file
Some deodorants could cause breast cancer: Swiss study
Photo: Royal Savoy
In pictures: Inside the latest Swiss luxury hotel
Photo: AFP
Geneva airport bomb hoaxer faces 90,000-franc bill
Photo: Schaffhausen police
Mother leaves toddler son alone in car to go clubbing
Photo: Fabrice Coffrini/AFP
Swiss populist attacked by knife-wielding pensioner
Photo: File
Bern argues over passports for 3rd generation foreigners
Photo: Broad Bean Media
Muslim pupils must shake hands – ‘no ifs and buts’
jobs available