Richemont Christmas sales rise at fastest pace in 4 years

Zurich - Richemont [JSE:CFR] the maker of Cartier necklaces and IWC Schaffhausen timepieces, reported its fastest holiday sales growth in four years, boosted by demand in Asia.

Revenue gained 7% excluding currency shifts in the three months through December, the Geneva-based company said on Thursday. Analysts predicted 5.9%. Still, wholesale revenue declined as retailers struggled to reduce inventory.

Demand for luxury goods surged last year following a multi-year slowdown driven in part by economic uncertainty and a crackdown on state corruption in China. While the turnaround has sparked competitors like LVMH and Hermes International to invest in new factories for products like high-end handbags and cognac, Richemont has focused on clearing out a glutted market for Swiss timepieces by buying back unsold stock from retailers.

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The company, whose full name is Cie. Financiere Richemont, doesn’t report profit for its fiscal third quarter. Total revenue amounted to €3.12bn (R46.39bn), just ahead of the €3.1bn (R46.10bn)estimate.

Revenue in Asia Pacific, which accounted for nearly 40% of total sales in the first half, gained 11%. Analysts forecast 12% for that region.