Hong Kong protests dampen Richemont watch sales
By Corinne Gretler
(Bloomberg) – Richemont reported a surprise drop in revenue from its watch business, with protests in Hong Kong cutting sales in a key luxury market for the owner of Cartier.
The watch unit's sales slid 2% excluding currency shifts in the three months through June, the Geneva-based company said Thursday. The stock fell as much as 3.9%, trimming its gain this year to 33%.
The report comes after rivals Burberry Group Plc and Swatch Group AG announced better-than-expected results, raising the bar for the sector. Richemont's watch brands have suffered from excess inventory, and the company has been buying back unsold products from the market since 2016. Richemont echoed Swatch in saying that protests in Hong Kong, the top export market for Swiss watches, weighed on sales due to store closures and lower tourist arrivals.
"It's a sales miss and a sales miss is never good news," said Eleanor Taylor Jolidon, who manages $2.5bn at Union Bancaire Privee in Geneva.