Reporting its sales figures  for the third quarter ended December 31, 2016 (Q3  FY 2017), luxury conglomerate Richemont said that the Company  had seen a growth of 5% at constant exchange rates and 6% at actual exchange rates for the period, compared to the same period of the previous year.

Total sales for the October 1- December 31, 2016 quarter amounted to € 3,093 million, as compared to sales worth €   2,927 million achieved in the same period last year.

“Growth was driven by jewellery across most regions and watches in the retail channel,” the Company said.

By region, sales for the period  were highest in  Asia Pacific  amounting to   €  1,130 million as against sales of € 1,036 million notched in the same period last year. This marked a 10% growth at constant exchange rates and a 9%  increase in actual exchange rates.

“The 10% growth in sales in the Asia Pacific region reflected strong performances in mainland China and Korea, mitigated by continued declines in Hong Kong and Macau,” Richemont noted.

With sales worth € 861 million for Q3 FY 2017, Europe took second place. Its sales for Q3 FY 2016 had amounted to € 868 million. The region recorded a growth  of 3% at constant exchange rates; but saw a decline of 1% in actual exchange rates.

“In Europe, sales increased by 3% in the third quarter, in contrast with the 17% decline registered in the first six months of the year,” the Company elaborated.  “This improvement was primarily driven by robust local sales and tourist purchases in the United Kingdom as well as strong jewellery sales across the region.”

The Americas accounted for sales worth € 559 million for the period  as against € 515 million in the same period last year; marking a 8% and 9% increase in  constant exchange rates and actual exchange rates respectively, y-o-y.

“Sales in the Americas region grew by 8%, supported by jewellery and the reopening of the Cartier Mansion in New York,” stated the Company.

Richemont’s sales in Japan amounted to € 313 million compared to € 281 million last year; registering a decline of 1% in constant exchange rates, and an increase of 1% in  actual exchange rates, y-o-y.

Meanwhile the Middle East and Africa region earned for the  Company revenues  of € 230 million in Q3 FY 2017 as compared € 227 million earned in the previous year – marking a decrease of 1% at constant exchange rates and an  increase of 1% at  actual exchange rates. 

“The decline in Japan was limited to 1% thanks to the resilience of the domestic clientele and the reopening of the Cartier flagship store in Tokyo,” Richemont explained. “The Middle East and Africa continued to be subdued.”

By  product category, the Jewellery Maisons notched sales worth € 1,746 million in the quarter under discussion as against sales amounting to € 1,603 million achieved in the same period of the  previous year; marking an 8% and 9% rise in  constant exchange rates and actual exchange rates respectively, y-o-y.

Specialist Watchmaker sales amounted  € 813 million compared to € 826 million in the same period of the  previous year. “Other” sales amounted to € 534 million in Q3 FY 2017 as compared to € 498 million last year.

“Good demand for jewellery products and positive watch sales in retail contributed to the 8% sales increase at the Jewellery Maisons,” said Richemont. “The Specialist Watchmakers’ sales were down by 2%: positive growth in the retail channel was offset by continued weakness in the wholesale channel, albeit at a lower rate. The other businesses posted good growth, mainly driven by Chloé, Montblanc and Peter Millar.”

Commenting on sales by distribution channel, Richemont said: “Retail sales grew by 12%, compared to the 5% decline in the first six months of the current year, underpinned by solid jewellery sales, positive watch sales and the reopening of the two Cartier stores mentioned above. In the wholesale channel, the decline in sales was limited to 3%.”