Richemont owns international luxury brands such as A Lange & Söhne, Baume & Mercier, Cartier, Chloé, Dunhill, IWC Schaffhausen and Van Cleef & Arpels.
However, the group reported lower wholesale revenue, as it became more selective with its retail points, a sign that the luxury-brands house is cleaning up its distribution network after being forced to buy back unsold watches. Wholesale revenue was down 3percent to 1.14billion (R16.92bn), but this was offset by a 13percent increase in retail revenue, to 1.98bn, in the quarter.
“Wholesale sales decreased 3percent, reflecting qualitative upgrades to our external distribution network and the monitoring of inventory at our multi-brand retail partners. Growth in Asia-Pacific in the wholesale channel was offset by declines in other regions,” the group said.
Richemont said Asia-Pacific and the Middle East and Africa were its two best-performing regions, reporting sales growth of 11percent during the quarter.