Richemont's Revenue Fell by 47% in the First Quarter of 2020
The Swiss holding Richemont, which owns Cartier, Chloé, Van Cleef & Arpels and other brands, spoke about the revenue in the first quarter of 2020 (it ended June 30). Richemont sales nearly halved - 47% - to € 1.99 billion. Analysts attribute this to the consequences of the coronavirus pandemic - the closure of boutiques and the absence of Chinese tourists, regular customers of Richemont brands. Representatives of the holding note that revenues decreased in all countries, however, things were better on the Chinese market - during quarantine, online sales in China grew by 49%.
Earlier Burberry also talked about the revenue in the first quarter of 2020. During this period, sales of the British fashion house fell by 48.4% and amounted to £ 257 million. According to the head of Burberry, Marco Gobbetti, Covid-19 will affect the brand’s revenue in the coming months. In the second quarter, sales may fall by 15-20% - this will depend on the actions of the governments of different countries. To avoid further financial losses, Burberry plans to reduce costs in stores and offices outside the UK - this will save £ 35 million. Burberry will also reduce staff by 5% - as a result, 500 brand employees will lose their jobs. Layoffs will not affect those who work in stores and manufacturing in the UK.