Announcing its financial highlights for Q1 2020, Richemont indicated that due to the strong impact from Covid-19, sales for the quarter dipped by 47% at actual and constant exchange rates compared to the prior year period.
In Europe, sales were 59% lower than in the prior year period, with all markets impacted by public health protection measures.
Sales in Asia Pacific were the most resilient. The 29% sales decrease across the region reflected declines across all markets, with the exception of China. Sales in the Americas contracted by 61%, with business areas impacted significantly by the temporary store and distribution centre closures. In Japan, sales declined by 64% as stores were closed for most of the quarter under review. The year-on-year sales decline in the Middle East and Africa was contained to 38%, partly reflecting the recent internalization of operations in the Kingdom of Saudi Arabia as well as advanced purchases in anticipation of the Kingdom’s VAT increase on 1 July.
Retail and wholesale sales decreased by 43% and 65%, respectively, due to temporary store closures, severely reduced tourism and generally weak consumer sentiment. Retail sales were lower across geographies, with the exceptions of strong increases in China and the local South Korean market.
Online retail sales decreased by 22%, largely due to the temporary closure of the Online Distributors’ fulfilment centres, following strong double digit growth in the comparative prior year period.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
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