Even the rich are suffering
It is dark times indeed if millionaires start holding back on buying a new Montblanc pen, a Piaget watch, a Van Cleef & Arpels necklace or a pair of Purdey shotguns.
Richemont – the second-largest luxury goods group in the world and probably the most popular company on the JSE – just reported that sales in the first quarter of its financial year declined by 47% compared to the first quarter of the previous financial year. In essence, economies around the world were largely closed for the period under discussion from beginning April to end June.
The 47% drop in sales translates into lost revenue of more than €1.7 billion (nearly R33.2 billion at the current exchange rate).
Sales fell to €1.99 billion in the three months to end June, compared to €3.74 billion in the same quarter a year ago.
Read: Richemont’s virus warning gives the luxury business a reality check
Richemont reported “double-digit sales declines across all regions, distribution channels and business areas due to the widespread temporary store and distribution centre closures, a halt in tourism and subdued customer sentiment in many markets”.
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