Richemont warns of luxury slowdown in China as third quarter sales miss estimates
Richemont owns the Cartier and Montblanc luxury brands
Thursday 16 January 2014
Luxury giant Richemont has raised fears that China is still a source of concern for the sector after its third quarter sales missed expectations.
Sales were up 3 per cent to €2.94 billion but demand for its expensive watches in China waned. The Swiss group’s figures are in contrast to luxury fashion brand Burberry which yesterday reported a rise in sales growth in the region.
The group, which also owns online retailer Net-a-Porter.com and clothing brands including Chloé, reported organic sales up 9 per cent compared to analysts expecting a 12 per cent rise.
Richemont said wholesalers, particularly in the Asian-Pacific region, were cautious.
The group’s watches and jewellery have been hit by a Chinese crackdown on alleged gif giving and bribes at a government level. A number of luxury brands have been hit by the change.
Allegra Perry, luxury goods analyst at Cantor Fitzgerald, said that despite it being a year on since the “implementation of anti-gifting measures in fall 2012” and the “potential uplift from the earlier timing of Chinese New Year” Richemont’s Chinese sales growth was still weak.
She added: “We believe Richemont is well positioned with Cartier in the high growth and highly fragmented jewellery segment but we believe high-end watches in China remain under pressure.”
Swiss watch exports to China were down 15 per cent for the eleven months to November.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 3 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 4 The Greece debt crisis explained in less than 100 words
Hilary Swank: Million Dollar Baby star says she turns down roles to care for elderly father
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
The Greece debt crisis explained in less than 100 words
Bastrop: The Texas town where many fear a large military training exercise will be used by President Obama to take their guns and impose martial law
Bakery sends 'horrific' version of Frozen-themed birthday cake to unsuspecting customer
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...