Richemont points to China slowdown, spooks sector
"Overall, anecdotal evidence points to a recovery in the greater China region," Cox said, adding he would not change his forecasts numbers for now.
Demand in China slowed down in the second half of last year due to the once-in-a-decade leadership change in the Communist Party and a crackdown on corruption.
But it is expected by analysts to rebound strongly in the first quarter with the Chinese New Year celebrations in February and the National People's Congress in March, where government positions will be confirmed and gifts bestowed.
Richemont sales rose 5 percent at constant exchange rates in the three months to Dec. 31 to 2.86 billion euros ($3.8 billion), missing forecasts for a 7.6 percent rise in a Reuters poll, as the previously booming Asia-Pacific region reported no growth.
The group said the rate of wholesale growth fell in the quarter to just 2 percent from 8 percent in the April to September period due to caution by retailers in Hong Kong and mainland China and a less favourable environment.
Boutique openings helped retail sales but growth also slowed down to 9 percent, from 15 percent in the first half.
"The flat development in Asia-Pacific is a disappointment but reflecting the recent weakness in the high-end watch business in Greater China," Vontobel analysts Rene Weber said.
The maker of IWC and Lange &
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