Richemont, the Swiss luxury goods group chaired by Johann Rupert, reported weak sales growth during the Christmas holiday season as pandemic restrictions in China and the spread of Covid-19 weighed on demand in that key market.
Revenue climbed 5% excluding currency shifts, reaching €5.4 billion (R99 billion) in the three months through December, the company said Wednesday. Analysts expected 8% growth on that basis to €5.73 billion.
China abruptly ended its Covid Zero policy in the final weeks of 2022, which led to a surge of infections but a relaxation of restrictions on travel and retail.
Richemont, which is chaired by said sales rose in all regions except for Asia, because of the setbacks in China. The luxury-goods industry is also preparing for Chinese New Year shopping this month.
Richemont is one of the first major luxury-goods companies to report on sales during the holiday season. Burberry Plc reports later this morning.
Last year Richemont reported its fastest holiday-season sales growth in at least a decade as the luxury-goods market recovered.