With the luxury earnings season getting underway, Richemont, the Swiss luxury group, kicked off its fiscal year with a 6% increase in first-quarter sales, in line with market forecasts. Revenues for the three months through June totaled US $ 6.26 billion, although growth slowed to 3% at actual exchange rates as currency headwinds weighed in.
The ‘Other’ division — where fashion and accessories brands like Chloé, Alaïa, and Peter Millar reside — reported a 1% softening of sales, or 4% lower on a reported basis to €674 million (US $783 million).
Geographically, the Americas and Europe dominated growth, with sales up 11% and 10% respectively in reported terms. The Middle East & Africa also delivered the same strength, growing 11% reported and 17% constant currency. Performance in Asia Pacific was flat in constant terms but fell 4% in reported terms, as the region continues to experience headwinds. Japan, specifically, was affected by a 15% sales decline in constant terms.
From a distribution perspective, its own retail network contributed US $ 4.07 billion of sales, 6% higher. Online retail also rose by the same margin to US $ 378.7 million, while wholesale and royalty income was 6% higher at US $ 1.588 billion.
