Get more Mail & Guardian
Subscribe or Login

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 for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Related stories


If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here


Subscribers only

‘The children cannot cope any more’: Suicide in Calvinia highlights...

How Covid-19 has intensified the physical and emotional burdens placed on children’s shoulders.

Capitec Bank flies high above Viceroy’s arrow

The bank took a knock after being labelled a loan shark by the short seller, but this has not stymied its growth

More top stories

Sisters pave the way with ecobricks

The durable bricks are made from 30% recycled plastic, some of which they collect from a network of 50 waste pickers

If the inflation-driving supply strain in the US lasts, it...

In South Africa, a strong trade surplus, buoyed by robust commodity prices, will cushion our economy against pressure arising from US policy

Covid-19: No vaccine booster shots needed yet

Scientists agree it is important to get most of the population vaccinated before giving booster jabs

press releases

Loading latest Press Releases…