Swiss luxury group Richemont ( OTCPK:CFRUY ) highlighted a positive sales trajectory into 2023 despite lingering impacts of China’s lockdowns on sales.
The company posted 5% sales growth for its fiscal third quarter, led by double-digit growth in its Jewelry Maisons division. Japan was noted as a standout region with sales rising 43% year over year due to the lifting of pandemic restrictions, helping to offset declines in the larger Chinese market that kept many restrictions in place.
“The massive increase of Covid cases negatively impacted customer traffic and, due to staff unavailability, led to a reduction of boutique opening hours or temporary closures of points of sale in mainland China, leading to a sales drop of 24% during the period under review,” the earnings release stated.
While North American sales also moderated, European sales grew by 19% in the quarter.
“In Europe, sales growth was driven by continued strength in local and tourist demand, primarily from the US and the Middle East, underpinned by favorable exchange rates,” the company explained. “Sales in the Middle East & Africa region rose by 10%, benefitting also from the Qatar World Cup, which added inbound tourist purchases to sustained local demand.”
Read more on Swiss watch export trends at the close of 2022 .
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Richemont posts positive sales despite Asia Pacific underperformance