Richemont posts strong Q1 sales despite Mainland China restrictions

Swiss luxury giant Richemont reported a 20 percent increase in sales on a reported basis in the first quarter of the year despite the impact of Covid restrictions in Mainland China.

The group, whose portfolio includes Yoox Net-a-Porter (YNAP), Chloé, and Cartier, posted sales of 5.264 billion euros in the three months to June 30, up from 4.397 million euros a year earlier.

Breaking it down by region, sales in Asia Pacific, which in recent years has been its biggest market, dropped 15 percent to 1.78 billion euros due to ongoing restrictions.

Sales in Mainland China fell 37 percent in the quarter, but that narrowed to 12 percent in June as restrictions were eased.

The Americas become Richemont’s biggest market

The drop in Asia Pacific was offset by strong double-digit growth across almost all of Richemont’s other geographies.

In the Americas, sales were up 25 percent to 1.344 billion euros, making it Richemont’s biggest market in the quarter.

In Europe, sales were up 42 percent to 1.29 billion euros, with France the standout performer with triple-digit growth.

Sales in Japan surged 83 percent to 421 million euros.

Meanwhile, sales in the Middle East and Africa were up 6 percent to 429 million euros.

Breaking it down by business area, sales at Richemont’s Jewellery Maisons were up 12 percent to 3.015 billion euros, while sales at its Specialist Watchmakers were up 10 percent to 1.002 billion euros.

Sales at the group’s ‘Online Distributors’ division, which includes its e-commerce platform YNAP, were up 2 percent to 691 million euros.

At Richemont’s ‘Other’ division, which includes its fashion and accessories labels, sales jumped 28 percent to 600 million euros.