Coronavirus crisis weighs on Cartier and Piaget owner Richemont's sales

Luxury goods giant Richemont on Friday said “significant disruption” from the coronavirus outbreak weighed on fourth quarter sales.

The owner of the Cartier and Chloé brands was hit as stores closed due to the pandemic, and travel restrictions hurt tourist spend. It also reported a full-year profits fall.

Richemont said sales in the three months to March 31 dropped 18%.

The figure for Asia Pacific during the period was 36% lower, China slumped 67% and Europe decreased by 9%. But the Americas saw 9% growth.

Sales for the year to March increased by 2% to € 14.2 billion. Operating profit decreased by 22% to €1.5 billion.

Chairman Johann Rupert warned there will be headwinds in the months ahead.

Rupert said: "We are experiencing unprecedented times with severe disruptions across the world simultaneously. The closures of our internal and external points of sales, changing attitudes towards consumption and subdued consumer sentiment will weigh on this year’s results, even if, at the time of writing, we are gradually resuming operations as parts of the world emerge from lockdown. It is impossible to make meaningful predictions at this time."

However, he added that “there are signs of improvement in terms of our business”. That includes strong demand in China since stores have reopened.

Rupert also said that until the outbreak, the company recorded a good sales performance, bearing in mind protests in Hong Kong and France.