By Cristina Roca
Switzerland's Compagnie Financiere de Richemont reported third-quarter sales on Friday before markets opened. Here's what we watched:
SALES RESULTS: The luxury-goods company posted third-quarter revenue of EUR3.92 billion, falling squarely in line with a consensus estimate provided by FactSet.
WHAT WE WATCHED:
-YELLOW VEST EFFECT: Richemont's sales in Europe dropped compared to the same period last year. The company said the "yellow vest" movement in France, which forced it to close stores on six consecutive Saturdays, was one of the reasons.
-CHINA SLOWS DOWN: Mainland China trends held up, posting double-digit growth, despite Deutsche Bank's concerns that waning demand for hard luxury would drag. However, sales in Hong Kong were weaker due to the strength of the Hong Kong dollar against the yuan. Overall, organic growth in Asia Pacific slowed to 10% from 17% in 1H.
-...BUT LOVES BLING: Sales at Richemont's jewelry brands grew organically by 8%--slightly slower than in 1H, when they grew by 9%. Bryan Garnier analysts note that the store closures in France were hurt sales in this category.
Write to Cristina Roca at email@example.com; @_cristinaroca