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Robust sales at Richemont’s jewellery division bolstered the luxury group’s overall performance in the third quarter of its fiscal year ending December 31, 2020, with Asia and the Middle East driving the growth.
Jewellery soared by 14 per cent during the quarter, buoyed by solid business at Cartier and Van Cleef & Arpels. Sales were up in all regions except Europe and across all channels, according to the group.
Retail saw an 8 per cent increase, fueled mainly by jewellery amid the negative impact of temporary store closures due to the pandemic. Sales were particularly strong in China, Taiwan, Russia and Saudi Arabia. Richemont’s online sales meanwhile grew by 17 per cent, affirming the rising popularity of online luxury shopping.
Specialist watchmakers’ sales dipped by 4 per cent, with all regions exhibiting declines except Asia Pacific.
Group sales in Q3 rose by 1 per cent at actual exchange rates and by 5 per cent at constant exchange rates compared to year-ago figures amid a volatile environment. Asia-Pacific sales climbed by 25 per cent – supported by increases in China (80 per cent) and Taiwan (29 per cent) – offsetting losses in other Asian markets. The Middle East and Africa registered the strongest growth at 27 per cent on the back of resumed tourist spending in Dubai and solid domestic business in Saudi Arabia.
Sales in Europe contracted by 20 per cent, impacted by renewed public health protection measures and a halt in tourism while those in the Americas rose by 3 per cent. Japan’s sales were up 1 per cent, with local demand gradually recovering.