# Luxury group Richemont boosted by Asia recovery but Americas weigh
Published: 2023-07-17
Category: Headlines
Category URL: https://brandsjournal.com/category/headlines/
Meta Title: Richemont Reports 14% Sales Increase, Asia Boost...
Meta Description: Luxury group Richemont's first-quarter sales jump 14%, led by Asia surge. Dropping Americas sales weigh on shares, dampening market reaction.
URL: https://brandsjournal.com/luxury-group-richemont-boosted-by-asia-recovery-but-americas-weigh/

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## Luxury group Richemont boosted by Asia recovery but Americas weigh   By John Revill    ZURICH (Reuters) -Luxury group [Richemont](https://brandsjournal.com/italian-fashion-group-otb-joins-lvmh-led-blockchain-platform/) reported a 14% increase in first- quarter sales on Monday, boosted by a strong rebound in Asia and demand for its high-end jewellery.    But the owner of Cartier and Van Cleef & Arpels jewellery also pointed to a downturn in the Americas, which weighed on its shares.    The shares, which have gained 53% in the last year, were down 3.1% in pre market activity in Zurich.    Richemont posted a 19% rise in organic sales which exclude the impact of currency movements while analysts expected 20%, Bernstein analyst Luca Solca noted.    “We would expect a muted reaction from the market to today’s announcement,” he said.    Richemont’s Asia-Pacific business boomed, helped by the lifting of COVID-related restrictions and reopening of borders, pushing the company’s sales 32% higher.    But the Americas, where concerns have risen in recent months about a slowdown in luxury demand in the United States, saw sales fall 4%, said the company, which also owns several high-end watch brands.    “Negative growth in the Americas is likely to temper some of the market expectations,” said Vontobel analyst Jean-Philippe Bertschy.    Overall, Richemont said its sales increased by 14% to 5.322 billion [euros](https://brandsjournal.com/italian-hearing-aid-maker-amplifon-expects-higher-2023-earnings/) ($5.97 billion) in the three months to the end of June.    That was short of the 5.43 billion euros expected by analysts at Barclays and 5.54 billion expected by analysts at Bank Vontobel. [Richemont](https://brandsjournal.com/italian-fashion-group-otb-joins-lvmh-led-blockchain-platform/) does not report first quarter profit.    The sales increase was led by jewellery, where revenue rose by 19% to 3.60 billion euros.    The company’s specialist watchmakers, which include IWC, Piaget and Vacheron Constantin brands, posted a 6% increase in sales to 1.06 [billion](https://brandsjournal.com/volvo-cars-q4-profit-lags-forecasts/) euros.    Rival Swiss watchmaker Swatch last week reported its highest ever half-year sales, buoyed by the removal of COVID-related restrictions in Asia.    ($1 = 0.8908 euros)    (Reporting by John Revill; editing by Rachel More and Jason Neely)


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