Jewelry Watches Warmed Up, A Comprehensive Analysis Of Cartire's Parent Company's Earnings Report

Richemont, a Swiss luxury group, recently announced its third quarter earnings report. After experiencing a 12% decline in the first half of the fiscal year, the peak of its performance in the third quarter was mainly due to the excellent performance of jewelry. Meanwhile, the sales volume of its own stores also rebounded, and the decline rate of multi brand retailers slowed down.

　 Part of the third quarter of the past quarter (end of December 2106) is as follows:

Sales amounted to 3 billion 90 million euros, and sales increased by 5% year-on-year, at a constant exchange rate. Real exchange rates increased 6% over the same period last year, exceeding analysts' expectations.

Europe, Asia Pacific and the Americas have achieved growth.

Jewelry business in most parts of the world and retail channel watch business to promote growth.

Retail channel sales achieved two digit growth, and wholesale channel sales dropped to low single figures.

By Region:

Europe: third quarter sales grew 3% year-on-year, and sales fell 17% in the first six months of this year. Thanks to the excellent performance of British and local sales, British jewelry sales are also very strong.

Asia Pacific (except Japan): sales grew by 10% over the same period last year, while mainland China and South Korea performed well, while Hongkong and Macao still performed poorly.

Americas: sales grew 8% year-on-year, thanks to the hot sale of jewellery and the reopening of Cartire building in New York.

Japan: sales decline was controlled at 1%, thanks to the rebound of domestic customers and the re opening of flagship stores in Tokyo.

Middle East and Africa: sales fell 1% year-on-year, continuing to slump.

　 By channel:

Retail channel sales grew 12% year-on-year, while sales in the first six months of the fiscal year decreased by 5% compared to the same period last year, mainly due to the good sales of jewellery and watches, and the re opening of the two Cartire stores in Tokyo and New York.

Wholesale channel sales fell by 3%.

By Sector:

Jewelry sector: sales grew 8% year-on-year, thanks to the growth in demand for jewellery.

Watch Department: sales fell 2% year-on-year, and positive growth in retail channels was offset by continued weakness in wholesale channels.

Business growth in other sectors is good, mainly driven by brands such as Chlo, Mont Blanc and Peter Millar. Analysts said Richemont restructured Dunhill's business and closed 25 stores in the second half of the fiscal year.

Two thousand and fourteen In mainland China, the number of watch sales dropped by half of the total sales volume of the group. Two thousand and fifteen year Eleven In September, terrorist attacks in Paris also made the most dynamic jewelry business perform poorly.

Controlling shareholder of a group Johann Rupert is strongly dissatisfied with its previous downturn. Two months ago, the group reorganized its management and cancelled its position as chief executive.

Closing 2016 At the end of the year, the net cash value of the group was Fifty-two Billion euros. Despite the warmer quarter results, due to the large amount of non cash income generated by the merger of Net-a-porter and Yoox in the last fiscal year, this year will face a higher base of comparison, and this year, despite the experience of layoffs, repurchase stocks and closing stores, the group still releases annual earnings warning.