Richemont sales hit by weak watch demand in Hong Kong

Cartier owner Richemont said weak luxury watch demand in Hong Kong and Macau halted sales growth in the final quarter of 2014, echoing comments by luxury peers this week.

Swiss watchmakers are grappling with sluggish sales in mainland China, where consumers are no longer spending as much on luxury timepieces, and a downturn in Hong Kong which has been shaken by pro-democracy protests. The region accounts for about a quarter of Richemont’s sales.

Earlier this week, British luxury brand Burberry said a fall in sales in Hong Kong in the final quarter of 2014 could hit full-year profitability, while US jeweller Tiffany also cut its profit forecast for 2014, citing a disappointing holiday shopping season and further weakness in Japan.

Sales growth was flat in constant currencies in Richemont’s third quarter to December 31st. While sales in the Asia-Pacific region and at the group’s watch brands declined in the quarter, Europe benefited from a return of tourist shoppers and the Americas still reported growth. Demand for jewellery also stayed strong, Richemont said. – Reuters