PARIS — Declining tourism in Europe and withering demand for watches in Asia-Pacific contributed to a 3 percent dip in third-quarter sales at Richemont.
Revenues in the three months ended Dec. 31 totaled 2.93 billion, or $3.21 billion at average exchange rates, representing a 4 percent decline stripping out the impact of currency.
Richemont, parent of brands including Cartier, Baume & Mercier, Dunhill and Lancel, trumpeted that jewelry enjoyed strong growth, partly compensating for lackluster sales of timepieces.
The company noted that the decline in European sales began in November, the month when terrorists stormed cafés and a concert hall in Paris, killing 130 people and wounding hundreds. The French capital is a key city for Europe’s luxury players to capture well-heeled travelers.
Richemont also cited “subdued” sales in the Americas, “limited growth” in the Middle East and Africa, and a slower pace of growth in Japan, signaling that luxury firms face few bright spots as they enter 2016.
Declining sales of its specialist watchmakers — a 4 percent dip at constant exchange rates — reflects caution in the wholesale channel, particularly in Hong Kong, Macau and the Americas, Richemont said, noting that the rate of sales growth “continued to improve in mainland China.”
The company cited modest growth in its “other businesses,” which include the fashion houses Chloé and Peter Millar and the pen specialist Montblanc.
“The challenging trading environment is likely to prevail in the final quarter to March 31, 2016,” Richemont noted, also warning that operating profits would be dented by a property disposal gain in the year-ago period.
Richemont is scheduled to report full-year results on May 20.