Cartier owner Richemont on Friday announced a 20% drop in first-half net profit due to a drop in sales in China, where an economic slowdown has hit the luxury goods sector.
Richemont announced that its after-tax profit for the six months to September amounted to 1.7 billion euros ($1.8 billion), below analysts’ expectations compiled by Swiss news agency AWP.
Global sales decreased by 1% to 10.1 billion euros
Sales in Asia-Pacific fell by almost a fifth, while all other regions of the world recorded “solid growth,” Richemont said in an earnings call.
Richemont cited China’s “reduced consumer spending” and said growth in other Asian countries was “more than offset” by double-digit sales declines in the world’s second-largest economy.
Last month, French group LVMH, the world’s largest luxury goods company, which owns brands such as Louis Vuitton, Dior and Bulgari, reported a 4.4% drop in third-quarter sales.
Gucci owner Kering said sales fell 15% in the quarter due to weak consumer spending in China.
