Richemont revenue up despite yellow-vest headwind
Compagnie Financiere Richemont SA (CFR.EB) said Friday that its third-quarter revenue grew in the double digits, delivering results in line with expectations despite headwinds in some of its markets.
The Swiss company said revenue for the third quarter was 3.92 billion euros ($4.52 billion), up 25% from EUR3.13 billion for the same period the year earlier.
The result falls squarely in line with analysts’ expectations, who had seen the luxury-goods company’s third-quarter revenue at EUR3.92 billion, according to a consensus estimate provided by FactSet.
Excluding the Yoox-Net-A-Porter and Watchfinder online businesses, which Richemont acquired last year, revenue was up 6% year on year, the company said.
The maker of Cartier said Yoox-Net-A-Porter, its luxury-goods e-commerce business, posted double-digit growth and had a solid performance, but didn’t provide more concrete figures. "Watchfinder’s sales expanded more moderately," Richemont added.
The Swiss luxury group said sales grew in all regions except the Middle East and Europe, mentioning the "yellow vest" movement in France, which led to store closures on six consecutive Saturdays, as well as the 2018 disposal of its Lancel leather goods brand as weighing unfavorably on its results. Third-quarter sales in mainland China, meanwhile, grew in the double-digits during the third quarter, Richemont said.
The Swiss watchmaker said the third quarter was broadly in line with the positive trends seen during the first six months of the fiscal year ending March.
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