Richemont Faces Profit Decline Amid Chinese Market Slowdown

The luxury goods giant reports a 1% drop in sales as weak demand in China impacts performance, though jewelry remains a bright spot.

Richemont's first-half sales fell 1% to 10.1 billion euros, with significant declines in the Asia-Pacific region.
Jewelry sales rose 2% to 7.1 billion euros, driven by strong global demand except in China, providing a cushion against broader sales declines.
The company's watch division saw a 17% drop in sales, highlighting challenges in adapting to reduced demand, particularly in China.
Operating profit decreased by 17% to 2.21 billion euros, affected by higher raw material costs and foreign exchange headwinds.
Richemont's net profit was significantly impacted by a 1.2-billion-euro write-down from the sale of Yoox Net-a-Porter.