French luxury group Richemont achieved a 7 % third quarter revenue increase. Unfortunately, exchange rate fluctuations eliminated nearly everything.
Strong retail growth
Richemont’s overall third quarter turnover grew to 3.1 billion euro, which would have been a 7 % increase if exchange rates had remained stable, but only 1 % actually remained. The luxury company grew the most in Asia, where it had a 5 % increase, despite exchange rate fluctuations. There was a 3 % growth in the Middle East and Africa and everything remained stable in the Americas. Ignoring the exchange rate fluctuations, Richemont would have grown 8 % in this region.
European turnover slumped 2 percent and Japanese turnover fared even worse, down 6 %. There was growth for Richemont everywhere aside from Europe (- 1 %) if exchange rate fluctuations are ignored. The group’s strong performance is entirely thanks to its own store network, because turnover grew 7 % to 1.98 billion euro. Wholesale on the other hand plummeted 8 %.
Its jewelry brands grew 11 %, but only 5 % after exchange rate effects. Watches had a 1 % increase, but exchange rates turned that into a 4 % loss. Richemont is a luxury group with famous brands like Cartier and Piaget. It also controls 49 % of Yoox Net-a-Porter Group.