Net-a-Porter and Cartier owner Richemont is the latest luxury goods giant to report slowing sales. The Swiss-based group has joined peers LVMH and PPR in noting a drop in luxury sales growth in China.
It reported sales rose 7% in October, down from 12% in the first half of the year. But profits beat analysts’ expectations, up 53% in the six months to October to €1.09 billion (£908 million).
Analysts have put the slowdown in Chinese sales down to the reduction of “gifting” ahead of leadership changes in China.Richemont’s Asia-Pacific region makes up 41% of group sales and it said they were “normalising” after the boom years there.
Richemont’s chairman and majority owner, South African Johann Rupert, will step down as chief executive to make way for Cartier boss Bernard Fornas and deputy chief Richard Lepeu who will become joint chief executives.
