Advertise with fastmoving.co.za
 
 

Luxury goods retailer Richemont said  that wholesale revenue declined while retail revenue grew in the nine months to end-December, reflecting the company’s shift from traditional retailers to online-based sales.
Luxury goods retailer Richemont said that wholesale revenue declined while retail revenue grew in the nine months to end-December, reflecting the company’s shift from traditional retailers to online-based sales.

Asia-Pacific region lifts Richemont

RETAILER NEWS

By Karl Gernetzky - Jan 11th, 13:25

Luxury goods retailer Richemont said on Thursday that wholesale revenue declined while retail revenue grew in the nine months to end-December, reflecting the company’s shift from traditional retailers to online-based sales. 

Overall revenue in Europe was down 1% when judged at constant exchange rates, while revenue in the Asia-Pacific region grew 11% and in the America’s 8%, the company said in a statement.

Total sales grew 7%, to €3.12bn from €3.09bn, reflecting a 13% increase in retail sales and a 3% decline in wholesale sales. Total sales grew 1% when measured through actual exchange rates.

The Geneva-based company had a tough prior year‚ with earnings hit by stock buybacks of underperforming luxury watch brands. Amid a decline in traditional store-based sales, the company has indicated it is seeking to become more online-focused.

Growth in the Americas region reflected a strong performance from Jewellery Maisons, the company said. Sales in the Middle East and Africa rose by 11% in constant terms, benefiting from favourable currency movements, the internalisation of external points of sales and the anticipated introduction of a value-added tax in the United Arab Emirates (UAE).

The group’s net cash position at the end of the period amounted to €5.1bn, a decline of 2%, the company said.

At 10.15am Richemont was up 0.57% at R115.25, having added 3.13% so far in 2018.

© BusinessLIVE MMXVII 

Read more about: richemont | retail | luxury brands

Related News

Google buys £414m stake in JD.com
22/06/2018 - 11:19
China’s largest retailer JD.com has launched a $550 million (£414 million) partnership with Google which will see the former sell products through Google Shipping across the world.

MySchool MyVillage MyPlanet wins big at the Loyalty Magazine Awards in London
21/06/2018 - 15:14
MySchool MyVillage MyPlanet scooped three major awards at the Loyalty Magazine Awards held in London recently. The fundraising programme was awarded Best CSR Initiative Linked to Loyalty, Best Long-Term Loyalty Programme and also received the prestigious Regional Loyalty Champions of the Year for Middle East & Africa award.

Online shopping grows in SA
21/06/2018 - 10:21
Although traditional retail stores dominate the South African market, consumers are choosing the online option for cheaper technical goods purchases.

Higher taxes take a toll as retail index slumps to a three-month low
21/06/2018 - 08:53
The JSE’s general retail index, which includes the likes of Woolworths and Mr Price, has posted its worst rolling three-month period since the end of 2013, as depressed consumer confidence and a brewing US-China trade war ruin projections of a significant uptick in consumer spending.

Township retail and shopping centre market growing at a rapid pace
20/06/2018 - 10:40
Despite a challenging economy and disruptions, townships have become hubs for big development in retail and brands.