China Lifts Richemont Jewelry Revenue

RAPAPORT... Sales at Richemont's jewelry brands increased 10% in the first fiscalquarter, as lower value-added tax and customs duties drove purchases in mainland China,the luxury retailer said Thursday. Proceeds from the group's largest product category - which comprises Cartier and Van Cleef & Arpels - rose to EUR 1.83billion ($2.05 billion) in the three months ending June 30. At constant exchange rates, jewelry salesclimbed 7%. Sales at Richemont's watchmaker brands grew 1% to EUR 823 million ($924.9 million), but fell 2% in local currency, as protestsin Hong Kong - the largest export market for Swiss watches - resulted in storeclosures and decreased tourism to the area. Shipments of timepieces to themunicipality decreased 27% in June, according to data from the Federation ofthe Swiss Watch Industry. In addition, Richemont delayed the introduction of new watch products until the July-to-September period, whereas last year it held the launches in the April-to-June period. That affected the timing of sales, and impacted figures for the quarter.Group revenue climbed 12% to EUR 3.74 billion ($4.2 billion),as growth in Japan, Asia Pacific and the Americas outweighed decreases inEurope, the Middle East and Africa. Image: The Cartier Love Bracelet. (Cartier)