Chinese tourists boost Richemont's sales in Europe - leatherbiz: Leadi Leatherbiz

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Chinese tourists boost Richemont's sales in Europe

06/09/2012
Richemont, one of the world's largest luxury goods groups, has said Europe was its fastest-growing region in the past five months, with sales driven by tourists from China.

Sales in Europe grew 19%, compared with 12% in Asia and 8% in the Americas. The group is forecasting profits to rise between 20% and 40% for the six months to the end of September.

Half of Richemont's income comes from jewellery, but it also owns UK-based leathergoods and clothing company Alfred Dunhill, Paris-based handbag retailer Lancel and high-end online boutique Net-a-Porter, among others.

Its chief executive, Johann Rupert, suggested the growth in Europe was driven by Chinese shoppers who can purchase luxury goods at lower prices than they can at home due to favourable exchange rates.

Growth in China slowed from the 46% reported in the financial year to March but the group is expanding there as “that's where the money is”, according to the CEO.

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