Richemont sees sales fall 47% after lockdown hit luxury goods sector

Luxury goods firm Richemont, behind brands such as Cartier, Chloé and Piaget, said sales in the first quarter tumbled 47%.

The company said it has seen a “strong impact” from Covid-19 in the three months to June 30.

It had to close shops when lockdowns in different countries started. In England firms had to shut in March, and non-essential retailers could only open from June 15.

Sales fell 47% to €1.99 billion, and Richemont said the performance “reflected unprecedented levels of disruption and widespread temporary closures of internal, franchise or multi-brand retail partner stores, as well as the closure of online distributors’ fulfilment centres”.

It said decreases were less pronounced in the Middle East and Africa and in Asia Pacific, the latter benefiting from 47% sales growth in China which exited the lockdown earlier.

Richemont also pointed to online sales showing more resilience during the period.

The firm said that as at June 30, all distribution centres and most stores had reopened with exceptions in the Americas and travel retail.

Fashion firm Burberry yesterday reported a 45% fall in first quarter sales