Second-largest luxury goods group Richemont claimed to have an outlook on the bullish side on Wednesday, September 5, stating that although the Asian luxury market may be cooling, sales in that region continue to be healthy and are predicted to remain strong.
A forecast the luxury goods provider made over a month ago was reiterated before its annual general meeting: operating and net profit is predicted to increase up to 40% in the six months leading up to September.
In the first five months to the last day in August, sales were reported to have increased by 23%, one per cent lower than the 24% reported in the first four months. 13 per cent is in constant currencies.
“Europe was strong, particularly in the retail channel in major tourist destinations. Demand in the Asia-Pacific region remained solid after two years of exceptionally high growth,” Richemont said.
Reports mention that strong growth in emerging markets such as China have kept sales steady and increasing at Richemont and rival LVMH; further keeping the luxury market on steady ground are the Asian shoppers tending to buy luxury goods while vacationing in Europe. Both circumstances have helped off-set the more austere buying patterns Europeans have been exhibiting in the past few years due to the global economic crisis.