Luxury watchmaker Hublot expects China to drive sales rebound in 2021 By Reuters

© Reuters. A watch is displayed at a shop of LVMH’s Hublot in Zurich


By Silke Koltrowitz

ZURICH (Reuters) – Swiss luxury watchmaker Hublot, part of French group LVMH, expects sales to grow 15-20% in 2021, driven by China, after a difficult 2020 and a challenging start to the new year, its chief executive said on Monday.

Swiss watchmakers’ sales slid last year as stores were affected by pandemic-related closures and as tourism, an important driver of luxury watch sales, collapsed.

Some companies which have a strong presence in mainland China have benefited from a rebound in demand, such as Richemont, which returned to growth in the final quarter of 2020.

“For Hublot, we expect 15-20% sales growth this year … In China, we still have a lot of potential, we expect very strong growth of 30-50% there,” CEO Ricardo Guadalupe told Reuters in a phone interview during LVMH watch week.

Guadalupe said sales growth in the final quarter had been better than in the third for Hublot, but also for LVMH’s watch and jewellery business overall. LVMH, the world’s biggest luxury goods group, is due to publish full-year results on Tuesday.

He said growth had come from mainland China, while Macau had also improved since October. Hong Kong was still difficult, due to the political situation, but Japan and the Middle East were doing well, he said.

“Western Europe stays difficult due to the lack of tourists,” Guadalupe said. Store closures related to COVID-19 restrictions are currently hitting sales in Switzerland, Germany, the Netherlands and the United Kingdom.

He said the brand was looking to further streamline its distribution network in the coming years, but would open four new stores in second-tier cities in China this year.

A monitoring system helped Hublot to avoid excess stock build-up at retailers, but in some hard-hit areas, such as cruise ships, the brand was ready to take back unsold timepieces, Guadalupe said.

Online sales of Hublot watches, which cost 18,000 euros ($21,864.60) on average, are still small and are expected to reach 2-3% of total sales this year.

($1 = 0.8232 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.