Richemont sees market recovering

Richemont, the parent company of, among others, besides Cartier, the market for luxury products pick up again, and climbing, due to strong sales in China. That’s what the company says in a trade report about the six-month figures.

Johann Rupert says the pandemic has kept “unparalleled” in the company. However, he says that “the strong presence in China and an acceleration of digital initiatives” have mitigated the consequences of the pandemic. Shops had to close temporarily and the company suffered a halving of global tourism.

In addition, the company improved the quality of distribution and stocks. In order to maintain the company’s financial situation in order to pass the pandemic, Richemont issued a bond issue worth EUR 2 billion.

In the first six months of the broken financial year, turnover fell by more than a quarter compared to a year ago to almost EUR 5.5 billion. That was almost EUR 7.4 billion in the same period a year ago. The profit came to 159 million euros, compared to 869 million euros in the same period a year ago.

The company saw a slight increase in sales in the second quarter, after they fell by almost half in the first quarter. In particular, sales in China increased, where more than three quarters more were sold.