Richemont, a global luxury goods conglomerate headquartered in Switzerland, has reported a 1% increase in sales at constant exchange rates for the first quarter of fiscal year 2025 (Q1 FY25), ending June 30, 2024. This modest growth, reaching €5.3 billion (approximately $5.77 billion), follows a significant 19% increase in the same period last year. The group’s fashion and accessories houses recorded solid growth of 4%, contributing positively to overall sales performance.
Richemont reported a 1% rise in sales to 5.3 billion euros (about $5.77 billion) in the first quarter of fiscal 2025. The group's fashion and accessories businesses grew 4%. Japan saw a 59% rise in sales, while sales in Asia Pacific fell 18%. Retail and online sales rose 2% and 6% respectively, offsetting a 5% drop in the wholesale channel.
Performance varied significantly across regions. Asia Pacific saw an 18 percent contraction in sales as sales growth in South Korea and Malaysia was insufficient to offset a steep 27 percent decline in China, Hong Kong and Macau combined. The decline in this region was attributed to low consumer confidence and strong comparisons to the prior 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 recorded a 5% increase in sales, driven by strong local demand and increased shopping volumes by tourists. The Americas showed a solid 10% increase in sales, reflecting sustained domestic demand across all distribution channels. Japan led regional sales growth with a notable 59% increase, driven by domestic demand and buoyant tourist spending by Chinese, South Korean, Southeast Asian and American customers, all supported by a weakened yen. The Middle East and Africa region also performed well, with an 8% increase in sales, benefiting from increased domestic and tourist spending in the United Arab Emirates 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 percent of Group sales, rose 2 percent. Online retail sales rose 6 percent, reflecting consumers’ growing preference for digital shopping experiences. However, the wholesale channel experienced a 5 percent drop in sales, mainly due to weaker performance in the Asia Pacific region.
Fibre2Fashion (DP) Press Desk
