Compagnie Financiere Richemont SA said Friday that a return of tourism to Europe helped drive double-digit sales growth in the first quarter of its fiscal year, offsetting the negative impact of lockdowns in China. The Swiss luxury-goods group
reported total sales of 5.26 billion euros ($5.27 billion) in the March-June period, rising 12% on year at constant currency from EUR4.4 billion a year earlier. This beat expectations of EUR5.1 billion, according to a poll of analysts’ estimates compiled by FactSet.
Sales in Europe rose by 42% in the period, the Cartier owner said, pointing to a recovery in spending from American and Middle Eastern tourists in the region, as well as strong domestic demand. This helped offset a sales slump in China due to strict pandemic-related restrictions, Richemont said. In mainland China, sales fell 37% on year, leading to a 15% drop in overall Asia-Pacific sales, excluding Japan. However, the exit rate showed a recovery in mainland China, with only a 12% drop in June, Richemont said. By channel, retail sales drove growth with an 18% increase on year to take a 58% share of the total, compared with 55% in the year-earlier period, the company said. Write to Joshua Kirby at email@example.com; @joshualeokirby