Premier Luxury company Richemont, which recently provided a trading update for the third quarter ended December 31, 2017, reported that its sales increased by 7% at constant exchange rates and by 1% at actual rates compared to the same period of the previous year.

The Company noted that at constant exchange rates, sales in most regions grew, “with sustained double digit growth in Asia Pacific”. While the Jewellery Maisons performed strongly,  the Company witnessed “continued double digit increase in retail sales”. Richemont said this growth was  “driven by the Jewellery Maisons and Specialist Watchmakers”. However, the Company reported a moderate decline in wholesale sales.

Regionwise, at constant exchange rates, sales in the United Kingdom were down by 1%. The Company attributed this decline to “the strength of the euro and challenging comparatives” in the UK.

“Double digit growth in Asia Pacific was driven by mainland China, Korea, Hong Kong and Macau,” the Company noted on a more optimistic note. “The performances of the Jewellery Maisons and Specialist Watchmakers were particularly noteworthy in this region.”

In the Americas a “good performance” by the Jewellery Maisons resulted in an increase of 8%; while in Japan the 5% increase in sales was due especially  to a strong performance of the Specialist Watchmakers combined with “a favourable currency environment”.

“Sales in the Middle East and Africa rose by 11%, benefitting from favourable currencies, the internalisation of external points of sales and the anticipated introduction of a value added tax in the UAE,” the Company stated.

The retail segment “maintained strong momentum”, with sales seeing double digit growth of 13%, “underpinned by solid performances from the Jewellery Maisons and Specialist Watchmakers”, said Richemont.

However, wholesale sales decreased by 3%. Richemont said that the wholesale channel’s  growth in Asia Pacific was offset by declines in other regions.

Segmentwise, Richemont’s  Jewellery Maisons delivered the strongest sales growth, with an 11% increase; “reflecting strength in the retail channel”, the Company stated.

On the other hand, the Company described the Specialist Watchmakers’ performance as “subdued”; its sales increasing as they did by a mere 1%. 

Sales of the Other businesses were stable;  with growth notably from Montblanc, Chloé and Lancel.

“Excluding the impact of the sale of Shanghai Tang, the Other businesses would have recorded moderate growth,’ Richemont noted.

The Group reported a net cash position at 31 December 2017 amounting to € 5.1 billion (2016: € 5.2 billion).

The Company also reported that  sales over the nine-month period to December increased by 10% at constant exchange rates and by 7% at actual exchange rates. The Company said this reflected the  continuing   “positive trend seen in the first six months of the financial year”. 

For the financial year ended 31 March 2017, Richemont had reported sales of € 10,647 million; an operating profit of € 1,764 million and profit for the year of € 1,210 million.