Cartier owner Richemont share price drops as it reports Christmas sales fall for the first time since 2008
Richemont, the owner of luxury brands Cartier, Mont Blanc and fashion house Chloe, has reported sales over the Christmas period fell for the first time since 2008.
The world's second biggest luxury goods group's share price fell too: down 2.9 per cent to CHF63.55 (Swiss francs) as markets opened.
Revenue, at constant currency rates, fell four per cent to €2.9bn (£2.2bn). This is slightly behind the three per cent decline expected by analysts on Bloomberg.While many companies have struggled with currency headwinds, the weaker euro has benefited Richemont, which reports in euros. So on an adjusted currency basis, total revenue rose three per cent.Sales in the Asia Pacific region fell nine per cent in the three months to the end of December, to €1bn.Sales in Europe were down three per cent to €868m.Revenue from luxury watch brands was down four per cent and from jewellery houses decreaed five per cent.The company doesn't report profit for its third financial quarter.
Why it's interesting
It's been a challenging time for luxury brands around the world, as demand in China, and the rest of the region, slows with the economy – and in response to a crack down on bribery in China.Richemont shares have fallen more than 9 percent so far this year, on top of a 19 percent decline last year.Hong Kong, the top market for Swiss watches, has been difficult a difficult market recently as well, thanks to political tensions with China, and a strong Hong Kong dollar have discouraging shoppers from the mainland....MORE
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