Richemont's Wholesale Revenue Drops on Sales Network Cleanup
- Cartier maker has been reducing supply to struggling retailers
- Third-quarter revenue slightly beats estimates on jewelry
Photographer: Billy H.C. Kwok/Bloomberg
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Richemont, the maker of Cartier necklaces and IWC timepieces, reported lower wholesale revenue as it became more selective with its retail points, a sign the luxury house is cleaning up its distribution network after being forced to buy back unsold watches.
Wholesale revenue declined 3 percent at constant exchange rates in the three months through December. Richemont cut off sales to stores that haven’t been successful enough in finding end-clients for watches by its brands, which include Vacheron Constantin and A. Lange & Soehne.