ZURICH (Reuters) – Luxury group Richemont said on Friday that higher sales in Europe, the Americas, Japan and the Middle East had offset a decline in the Asia-Pacific region over April-June, without giving a outlook for the rest of the year.
Despite a strong recovery in 2021 following the COVID-19 pandemic, Swiss watchmakers have faced prolonged restrictions in the important Chinese market this year. These notably impacted the sales of Swatch Group, a rival of Richemont, in April and May.
Richemont also felt the shortfall in mainland China, where its sales fell 37% in the quarter.
The overall growth of its sales, of 12% at constant exchange rates, still exceeded that of Swatch in the first half, driven by jewelry, a sector that is experiencing rapid growth. Richemont also benefited from the growing number of stores under its own brand.
“The rate of decline (in mainland China) eased to 12% in June, when restrictions were gradually eased,” Richemont, known for Cartier jewelry and IWC watches, said in a statement.
Sales were up 42% in Europe, “supported by robust domestic demand and a return to tourism spending, mainly from US and Middle Eastern customers”, while the Americas were up 25%, a clarified Richemont.
In Zurich, the Richemont title lost 4.8% at 07:11 GMT.
(Report Silke Koltrowitz, French version Valentine Baldassari, edited by Kate Entringer)
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