The Cartier jewellery maker Richemont missed market forecasts during its latest quarter as the resurgence of Covid-19 in China sabotaged sales.
Sales for the company plunged by almost a quarter in mainland China as customers stayed away from shops whilst a lack of staff led to temporary closures and shorter opening hours at its luxury boutiques.
“The sector will very much depend on what the Chinese do in FY23,” said Bernstein analyst Luca Solca. “The Chinese may embrace the same YOLO (“you only live once”) attitude western consumers have adopted, and they will be able to travel again and find cheaper prices in Europe. This will create a ‘growth relay’, where Chinese consumers take the luxury-spend growth torch from western consumers, as these moderate their spend growth, sobering up from the past pandemic euphoria.”
