Richemont’s sales in China slump as Covid surge closes boutiques
Cartier owner Richemont said revenue in the key market of China plunged due to the rapid spread of Covid, which reduced customer traffic and led to store closures due to employee absences.
Sales in China slumped 24% in the three months through December as the country abruptly ended its Covid Zero policy, leading to a surge of infections. The company said Wednesday total revenue rose 5% excluding currency shifts, missing analysts’ estimates.
China’s strategy switch made Asia the only region to report a decline in sales, just as the luxury-goods industry prepares for Chinese New Year shopping. Richemont said some shops in China had shorter opening hours or had to be shut due to staff unavailability during the quarter.
Richemont is one of the first major luxury-goods companies to report on sales during the holiday season. Burberry Group 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.
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