Richemont sales down 12 percent

GENEVA – Swiss luxury goods group Richemont on Monday announced a drop in turnover of 12 percent to EUR 1.55 billion (USD 2.07 billion, CHF 2.29 billion) for the third quarter compared with the same period of 2007, with US sales hit particularly badly.

At current exchange rates, the decline in turnover was only 7 percent, said a statement from the company.

But sales in December fell sharply, with a drop of 24 percent in the United States.

"Demand for luxury goods, as in other sectors of the economy, has fallen dramatically and Richemont is currently facing the toughest market conditions since its formation 20 years ago", said the company statement.

"Given the current economic climate and the uncertainties facing us, we see no cause for optimism.

"We must assume that there will be no significant recovery in the foreseeable future and plan accordingly to cope with this situation".

[AFP / Expatica]