Richemont’s Q3 Sales Increase by 8% to 5.6 Billion Euros, with a 25% Growth in China

1月 19, 2024

On January 18, Swiss luxury giant Richemont released its financial data for the third quarter of the fiscal year 2024, ending December 31, 2023. Despite the ongoing uncertainties in the macroeconomic and geopolitical environment, the group recorded growth across most regions, channels, and business sectors. The sales for the third quarter increased by 4% year-over-year to 5.6 billion euros (an 8% increase at constant exchange rates), driving a 5% year-over-year increase (11% at constant exchange rates) in sales for the first three quarters of the 2024 fiscal year.

Benefiting from a 25% year-over-year increase in sales in Mainland China, Hong Kong, and Macau, the Asia-Pacific market recorded a 13% growth in sales (at constant exchange rates). Additionally, the group’s net cash position improved to 6.8 billion euros (compared to 5.5 billion euros in the same period last year), reflecting robust performance and gains from exercising warrants under the 2020 shareholder loyalty plan.

As of 11 AM GMT+8 on January 18, following the release of the financial report, Richemont Group’s stock price rose by 7.95% to 114.05 Swiss Francs per share, with a latest market capitalization of 67.104 billion Swiss Francs.

Primarily Driven by Japan, Asia-Pacific, and the Americas, the Group Achieved Growth in Almost All Markets

  • Japan’s rapid growth benefited from increasing domestic sales and strong tourism consumption (especially from Chinese customers, partly due to the weak yen);
  • The 25% growth in sales in Mainland China, Hong Kong, and Macau, and the 13% overall growth in the Asia-Pacific region, offset weaker performances in other Asian markets;
  • Growth in the Americas was mainly due to economic recovery and a decrease in overseas purchases (especially in Europe) by American customers;
  • The Middle East and Africa experienced growth, driven by strong local and tourist demand in the UAE and Saudi Arabia;
  • Europe was the only market to decline, as an increase in sales to local customers did not compensate for the overall decrease in tourist spending, particularly from overseas customers from the USA.

 | Source: Richemont’s financial report

 | Image Credit: Richemont’s official website

丨Reporter:Ying Yuze

 | Editor: Wang Jiaqi