Richemont have again suffered a difficult trading quarter with a further 5% drop in watch sales adding to the other double digit drops throughout this difficult year. A robust jewellery division sales propped up the bottom line but only China showed any growth for watch sales, with Europe once again showing the largest drop of close to 20%.
Appears that so many luxury groups are now solely reliant on the Chinese economy remaining strong too maintain sales and profit levels. The European market appears to be in a permanent decline and with the tax implications of Brexit for UK buyers, could be a difficult time ahead for many in the luxury goods business.
Was there not discussion a while back of those brands buying back stock and getting rid of it rather than see it sold at discount?
Posting Permissions
Reply With Quote