Richemont’s sales surge

Richemont’s sales increased by 24 percent to EUR 3.915 billion in the third quarter of 2018, which is a higher increase than analysts expected.

The increase was mostly due to the acquisitions of the online merchant Yoox-Net-A-Porter (YNAP) and the online platform Watchfinder, but even the organic growth (excluding acquisitions, takeovers or mergers) was 5 percent.

Due to those acquisitions, European sales accelerated by 35 percent, that is twice the rate of Asia (17 percent). Currently, Asia is Richemont’s biggest market (EUR 1.389 billion), followed by Europe (EUR 1.147 billion).

If the acquisitions are not considered (organic growth), then sales in Europe actually declined. The Asian market showed the best performance with a sales increase by 10 percent. Mainland China also enjoyed a double-digit sales growth but sales growth in Hong Kong slowed due to the strength of the Hong Kong dollar versus the renminbi.

Further reading:

In-depth article about Richemont’s sales growth / InsideRetail

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