ZURICH (Reuters) – Cartier jewelry owner Richemont (SIX:) reported on Friday a 1% decline in sales in the three months to the end of September, the latest luxury company to report tougher conditions as China weakens.
The company, which also owns a number of Swiss watchmakers including IWC, Jaeger-LeCoultre and Piaget, said sales fell 1% at constant exchange rates to 4.81 billion euros ($5.19 billion), slightly above analyst consensus forecasts of EUR 4.78 billion. quoted by HSBC.
Strong sales growth in the Americas, Japan and the Middle East helped offset the downturn in the Asia-Pacific region, where Richemont sales fell 18%.
Richemont, like other luxury companies, is struggling with weaker demand in China due to an economic slowdown in the world’s second-largest economy.
Richemont’s luxury rivals have had mixed fortunes recently, with LVMH failing to provide sales forecasts for the third quarter, saying consumer confidence in China has sunk to a pandemic-era low.
There was also a divergence between Richemont’s jewelry business, which remained more resilient during the crisis, and its watch business, which continued to struggle during the quarter.
The company, which makes necklaces, earrings and bracelets under the Cartier, Van Cleef & Arpels and Buccellati brands, saw sales rise 4% in its jewelry business, better than a 19% decline in watches.
($1 = 0.9275 euros)
