China crack-down on jewellery bribes sees Richemont sales wane

Richemont, the world’s largest jewellery maker, reported revenue growth for the first five months of its fiscal year. Thist missed analysts’ estimates on lower sales in mainland China. 

Although revenue growth has slowed, the jewellery-maker remains tops in the industry.

Sales rose 9% in the period through August, excluding currency shifts, the Geneva-based company said today in a statement.

Analysts expected 10% growth, according to the median of 21 estimates gathered by Bloomberg News.

Revenue growth in the Asia-Pacific region, the source of 41% of Richemont’s sales last year, is waning as China cracks down on the use of watches and jewelry as bribes and illegitimate gifts.


Growth in that market was 4% excluding currency effects in the five months, continuing a slowdown in the last full fiscal year and compared with 46% growth a year earlier.

Rise in sales
Sales in Hong Kong and Macau rose in the five-month period and mainland China’s deceleration was mostly due to "prudent consumer sentiment after several years of exceptional expansion," Richemont said.

Total sales increased 4%, compared with the 6%  median estimate of 14 analysts surveyed by Bloomberg.

Full-year revenue rose 14% in the 12 months through March, Richemont said in May when chairperson Johann Rupert also announced plans for a one-year sabbatical following today’s annual general meeting.

Makers of luxury goods have boosted sales as the ranks of the rich expanded. The number of people with assets worth at least $30-million rose more than 6% to a record 199 235 this year, with a combined fortune of almost $28-trillion, according to the Wealth-X and UBS World Ultra Wealth Report.

Richemont reports five-month sales figures each year when it holds its shareholder meeting. The stock has gained 57% in the past year, compared with a 26% gain in shares of Tiffany, the second- largest luxury jewelry maker. – Bloomberg

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday