Swiss firm Richemont's sales at $5.77 mn in Q1 FY25

Richemont, a Switzerland-based global luxury goods conglomerate, has reported a 1 per cent increase in sales at constant exchange rates for the first quarter of fiscal 2025 (Q1 FY25), ending June 30, 2024. This modest growth, reaching €5.3 billion (approximately $5.77 million), follows a significant 19 per cent rise in the same period last year. The group's fashion and accessories maisons delivered a robust 4 per cent growth, contributing positively to the overall sales performance.

The performance varied significantly across regions. Asia Pacific experienced an 18 per cent contraction in sales, as increased sales in South Korea and Malaysia were insufficient to counterbalance a steep 27 per cent decline in China, Hong Kong, and Macau combined. The dip in this region was attributed to low consumer confidence and strong comparatives from the previous year, which had seen double-digit growth in mainland China and triple-digit growth in Hong Kong and Macau, the company said in a press release.

In contrast, Europe reported a 5 per cent sales increase, driven by robust local demand and stronger tourist purchases. The Americas showed a solid 10 per cent progression in sales, reflecting sustained domestic demand across all distribution channels. Japan led regional sales growth with a remarkable 59 per cent increase, bolstered by domestic demand and thriving tourist spending from Chinese, South Korean, South-East Asian, and American clients, all favoured by a weakened yen. The Middle East & Africa region also performed well, with an 8 per cent rise in sales, benefiting from increased domestic and tourist spending in the UAE and Saudi Arabia.

Sales growth in Richemont's retail and online retail channels helped offset a decline in the wholesale channel. Retail sales, which accounted for 69 per cent of Group sales, increased by 2 per cent. Online retail sales rose by 6 per cent, reflecting the growing consumer preference for digital shopping experiences. However, the wholesale channel saw a 5 per cent decline in sales, primarily due to weaker performance in the Asia Pacific region.

Fibre2Fashion News Desk (DP)