Richemont Jawelery Sales -12%

Luxury retailer Richemont SA posted a decline in jewelry sales in the third quarter of the year. Sales of its jewelry brands, or ‘Maisons’, totaled €800 million, down from €863 million in the 2007 December quarter.

In a gloomy interim management statement published Monday, Richemont said it intended to provide investors with a performance overview and not a full quarterly report.

Quarterly sales were 7 percent lower than in the prior year with underlying sales decreasing by 12 percent at constant exchange rates.

The trend worsened over the quarter, with sales in December 12 percent lower than the prior year at actual exchange rates. The Group's sales in the U.S. were down by 24 percent in Euro terms in December.

As demand for luxury goods has fallen dramatically, Richemont said it is currently facing the toughest market conditions since its formation 20 years ago, adding that it sees “no cause for optimism.”

“We must assume that there will be no significant recovery in the foreseeable future,” The company said in the statement, and is making plans accordingly.

The group’s jewelry brands reported a 12 percent decrease in underlying sales during the period. Cartier reported lower sales and Van Cleef & Arpels, following very strong growth earlier in the year, reported marginally lower sales.

Watch sales decreased by 5 percent at actual exchange rates following growth of 12 percent in the first half of the fiscal year.

By geographic region, sales in the Americas suffered from a 28 percent decrease at constant exchange rates, totaling €250 million. Asia-Pacific saw sales growth at actual exchange rates, but at a lower rate than that seen over the last 3 years. Sales grew to €395 million. Sales in mainland China increased by 24 percent at constant exchange rates.