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Shares in luxury giants in general, and Richemont<\/strong> in particular, suffered a hangover on Monday morning.<\/p>\n <\/p>\n Following the publication of disappointing quarterly results, the Swiss group<\/strong> fell by 8.0%, its “biggest one-day percentage fall for over a year<\/em>“.<\/p>\n <\/p>\n While the pan-European STOXX 600 index (.STOXX) was itself down 0.3% at 8.02am GMT, LVMH, Hermes and Kering<\/strong> themselves lost between 1% and 3.7%.<\/p>\n <\/p>\n <\/p>\n Richemont’s most spectacular fall was linked to the publication of “weaker than expected organic sales growth in the first quarter<\/em>“, due to the Americas. Sales there fell by 2%, with “lower wholesale and retail sales broadly in line with the previous year<\/em>“.<\/p>\n <\/p>\n This sign of weakness is worrying investors, despite the fact that the United States is one of luxury goods’ priority markets<\/strong>.<\/p>\n <\/p>\n However, the overall picture is not so bad for Richemont, which reports a “solid start to the financial year with growth<\/em>” in its “sales of 14% at real exchange rates (+19% at constant exchange rates)<\/em>” to \u20ac5.3 billion.<\/p>\n <\/p>\n <\/p>\n With the exception of the US market<\/strong>, sales were up “in almost all regions and distribution channels and in all business areas, at real exchange rates<\/em>“.<\/p>\n <\/p>\n Geographically, “the strong rebound in Asia-Pacific<\/em>” (+40%, the strongest regional performance!) “more than offset the weakness of sales in the Americas<\/em>“.<\/p>\n <\/p>\n The lifting of Covid restrictions<\/strong> and the reopening of borders in mainland China, Hong Kong and Macao<\/strong> in January 2023, generated double-digit growth in the former and triple-digit growth in the latter two regions!<\/p>\n <\/p>\n There were also “solid sales in other Asian markets, particularly Australia and Taiwan<\/em>“, and 14% growth in Japan, despite a high basis for comparison (+90% in the previous period!). The latter benefited from buoyant local demand and tourist spending, boosted by a weak yen.<\/p>\n <\/p>\n <\/p>\n The same winning combination (resilient domestic demand and tourist spending, driven by American, Middle Eastern<\/strong> and, more recently, Chinese customers<\/strong> on the old continent) has buoyed the European market, but also the Middle East and Africa.<\/p>\n <\/p>\n Sales on the Old Continent rose by a further 11% in the first quarter, after already increasing by 52% the previous year. This dynamic performance can be seen in most countries – particularly France, Italy and Switzerland.<\/strong><\/p>\n <\/p>\n In the Middle East and Africa, sales rose by 15%, driven in particular by Dubai.<\/p>\n <\/p>\n <\/p>\n In terms of activities, Richemont did better than last year everywhere. The Jewellery Houses led the way at a high rate (+19% at real exchange rates, +24% at constant exchange rates) with sales of 3.6 billion euros.<\/p>\n <\/p>\n Its three jewellery houses – Buccellati, Cartier and Van Cleef & Arpels<\/strong> – all performed strongly (+24%), thanks to robust sales of jewellery and watches.<\/p>\n <\/p>\n Specialist Watchmakers (+6% at real exchange rates, +10% at constant exchange rates) and Other Houses – Watchfinder & Co<\/strong>, its fashion and accessories houses (Ala\u00efa, Chlo\u00e9, Delvaux, Dunhill, Peter Millar) and Monblanc (+5% at real exchange rates, +8% at constant exchange rates) – were also up, but less spectacularly.<\/p>\n <\/p>\n American sportswear label Peter Millar<\/strong> stood out with double-digit growth, “despite the relative slowdown” in its home market and “a high basis for comparison<\/em>“.<\/p>\n <\/p>\n <\/p>\n Yoox Net-a-Porter<\/strong> (YNAP), now presented as “discontinued operations<\/em>“, recorded an 8% drop in sales (-10% at real exchange rates) “in a generally difficult environment for pure players in digital distribution<\/em>“. Last summer, Richemont announced the resale of the leading online luxury retailer to Farfetch, in a process that was to be completed three years later with the transfer of 100% of the shares.<\/p>\n <\/p>\n In terms of channels, direct sales to customers are becoming increasingly important, now accounting for 74% of the Group’s sales, thanks to an increase of 200 basis points on the previous year.<\/p>\n <\/p>\n E-commerce grew by 2%<\/strong>, with varying performances across sectors, and a 14% increase for Jewellery!<\/p>\n <\/p>\n Finally, wholesale sales rose by 11%.<\/p>\n <\/p>\n Next dates for Richemont: its Annual General Meeting on 6 September in Geneva and the announcement of the interim results for the current financial year on 10 November 2023.<\/p>\n <\/p>\n Read also > Richemont\u2019s CFO becomes the group\u2019s highest-paid executive<\/a><\/p>\n <\/p>\n Featured photo : \u00a9 Press[\/vc_column_text][\/vc_column][\/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]<\/p>\n <\/p>\n <\/p>\n Shares in luxury giants in general, and Richemont<\/strong> in particular, suffered a hangover on Monday morning.<\/p>\n <\/p>\n Following the publication of disappointing quarterly results, the Swiss group<\/strong> fell by 8.0%, its “biggest one-day percentage fall for over a year<\/em>“.<\/p>\n <\/p>\n While the pan-European STOXX 600 index (.STOXX) was itself down 0.3% at 8.02am GMT, LVMH, Hermes and Kering<\/strong> themselves lost between 1% and 3.7%.<\/p>\n <\/p>\n <\/p>\n Richemont’s most spectacular fall was linked to the publication of “weaker than expected organic sales growth in the first quarter<\/em>“, due to the Americas. Sales there fell by 2%, with “lower wholesale and retail sales broadly in line with the previous year<\/em>“.<\/p>\n <\/p>\n This sign of weakness is worrying investors, despite the fact that the United States is one of luxury goods’ priority markets<\/strong>.<\/p>\n <\/p>\n However, the overall picture is not so bad for Richemont, which reports a “solid start to the financial year with growth<\/em>” in its “sales of 14% at real exchange rates (+19% at constant exchange rates)<\/em>” to \u20ac5.3 billion.<\/p>\n <\/p>\n <\/p>\n With the exception of the US market<\/strong>, sales were up “in almost all regions and distribution channels and in all business areas, at real exchange rates<\/em>“.<\/p>\n <\/p>\n Geographically, “the strong rebound in Asia-Pacific<\/em>” (+40%, the strongest regional performance!) “more than offset the weakness of sales in the Americas<\/em>“.<\/p>\n <\/p>\n The lifting of Covid restrictions<\/strong> and the reopening of borders in mainland China, Hong Kong and Macao<\/strong> in January 2023, generated double-digit growth in the former and triple-digit growth in the latter two regions!<\/p>\n <\/p>\n There were also “solid sales in other Asian markets, particularly Australia and Taiwan<\/em>“, and 14% growth in Japan, despite a high basis for comparison (+90% in the previous period!). The latter benefited from buoyant local demand and tourist spending, boosted by a weak yen.<\/p>\n <\/p>\n […][\/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…<\/p>\nRichemont: -8%<\/h2>\n
Good overall picture<\/h2>\n
A winning combination<\/h2>\n
Businesses progressing everywhere<\/h2>\n
YNAP down sharply<\/h2>\n
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The Swiss luxury group’s share price fell by 8% on Monday morning. This was a reaction to the decline in sales on the US market, while other markets and all activities were up.<\/h4>\n
Richemont: -8%<\/h2>\n
Good overall picture<\/h2>\n