Richemont sales flat as weak China demand weighs on luxury sector

16th Jul 2024 09:03

(Sharecast News) - Cartier owner Richemont said sales were flat in the three months to the end of June as it became the latest luxury goods to be hit by a heavy fall in Chinese demand.

The company on Tuesday said sales rose 1% to €5.3bn against consensus forecasts of 2% growth, amid a "continuing uncertain macroeconomic and geopolitical environment".

"All regions delivered growth except for Asia Pacific where sales contracted by 18%, as higher sales in South Korea and Malaysia only partially mitigated a 27% decline in China, Hong Kong and Macau combined," the company said.

On Monday, a sharp drop in sales at Swiss watchmaker Swatch and a profit warning from Burberry saw shares in both firms fall sharply.

Reporting by Frank Prenesti for Sharecast.com