Sales in the third quarter increased by 5% (at a fixed exchange rate), while the real exchange rate increased by 9%
Except for steady growth in the US, overall slowdown in other regions
Retail is better than wholesale
Three month sales focus review
The following comments are based on a fixed exchange rate.
The jewellery sales and retail channels are strong, while the relatively weak wholesale channels have dragged their hind legs. The wholesale channels have shown that the group’s watch retailer partners are ‘cautious’.
The performance in Europe is relatively satisfactory: compared with the first six months of this fiscal, retail sales growth has slowed this quarter, while wholesale sales have continued to maintain the growth trend of the first six months.
After years of rapid development, the Asia-Pacific region has achieved outstanding results, especially in China, but compared with aggressive figures in the same period last year, this year is very mediocre. The wholesale growth rate was lower than the previous six months and the same period last year. Because of the Group’s conservative practices in Hong Kong and mainland retailers, the opening of boutiques has played a positive role in promoting retail.
Sales in the Americas region have grown significantly, both in retail and wholesale, steadily increasing.
Sales in Japan increased by 2%; slightly below the level in the first six months of the year.
At this stage, it is unclear how the business model will move and how Asia-Pacific trade will resume in the near future. Richemont needs to plan from a long-term perspective and will continue to increase investment in its subsidiaries.
Retail sales increased by 9% in the third quarter, well below the 15% in the six months to the end of September.
The slowdown in wholesale sales growth is much lower than the 8% sales growth in the six months to the end of September, which reflects the cautious attitude of retail partners and the unfavorable retail environment, especially in the Asia-Pacific region.
Compared to the first six months, all business areas have shown signs of decline.
The jewellery company’s own boutiques are operating well and maintaining a good growth momentum. The retail network also benefits from strong jewelry sales.
The group’s professional watchmaking brands performed well during the quarter. Retail growth has been driven by companies’ own specialty stores. Although the companies in the Asia-Pacific region, which have a higher degree of focus, are slightly worse, the overall growth is still 9%, and in most cases it is a double-digit growth.
Montblanc brand sales were flat compared to the same period last year, with retail growth making up for reduced retail partner sales.
In other business areas of the Group, Net-a-Porter and Chloé maintained a good growth momentum compared to the previous period.
Financial statements for the first 9 months
At a constant exchange rate, sales growth for the nine months ending December was 9%, compared with 17% at real exchange rates. The depreciation of the euro against the dollar has had a positive impact on the group’s sales. Appendix 1a shows sales for the nine months ended December 31, 2012.
As of December 31, 2012, the group achieved a net cash surplus of € 3 billion (2011: € 2.9 billion).
The financial performance report for this fiscal year will be released on Thursday, May 16, 2013.
The company’s annual shareholder meeting will be held in Geneva on Thursday, September 12, 2013.