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Richemont reports strong Q1 trading performance

By Prachi Singh

Jul 16, 2021

Management

Image: Richemont media centre

Richemont sales increased 129 percent to 4,397 million euros against 2020 and 22 percent versus 2019. The company said, increase in sales was led by the jewellery maisons and specialist watchmakers with growth of 142 percent and 143 percent to 2,515 million euros and 849 million euros, respectively. The other business area, mostly composed of fashion & accessories Maisons, also performed strongly, recording 124 percent sales growth to 440 million euros.

The Americas generated the strongest regional performance, with sales increasing by 276 percent to 955 million euros driven by strong local demand, followed by the Middle East and Africa with sales up by 154 percent to 364 million euros. Wholesale and retail led channel growth, with sales progression of 178 percent and 138 percent to 1,167 million euros and 2,421 million euros, respectively.

Review of trading in the three-month period in 2021 versus 2019

In the period under review, sales exceeded pre-Covid levels. The company said, sales growth of 22 percent was driven by strong double-digit increases in the Americas, Asia Pacific and the Middle East and Africa.

Sales in Europe contracted by 15 percent, while in Asia Pacific, sales increased by 40 percent, with good momentum across most markets, particularly in mainland China, Macau SAR (China) and South Korea. In the Americas, sales rose by 47 percent, while sales in Japan declined by 14 percent. The Middle East and Africa posted the strongest regional performance with 55 percent sales growth, reflecting domestic and tourist spending, notably in Dubai and Saudi Arabia.

Retail sales rose 35 percent supported by double-digit growth at the jewellery maisons and specialist watchmakers. Retail sales were particularly strong in the US, Russia and Saudi Arabia. Online retail sales rose by 29 percent, while sales in the wholesale channel were 3 percent.

Sales grew 43 percent at the jewellery maisons, while the specialist watchmakers’ sales increased by 6 percent. At the Online Distributors, sales grew by 8 percent, and GMV increased by 9 percent. The group’s other business area recorded a 7 percent decline in sales.

Richemont announces changes to the executive committee

Richemont has announced that Cyrille Vigneron, president & chief executive of Cartier, and Nicolas Bos, president & chief executive of Van Cleef & Arpels, will step down from the senior executive committee and will not seek re-election to the board of directors at the group’s annual general meeting on September 8, 2021. They will continue to report directly to Johann Rupert, Chairman.

Philippe Fortunato, CEO of fashion and accessories, Emmanuel Perrin, head of specialist watchmakers distribution, and Frank Vivier, chief transformation officer will step down from the senior executive committee. They will continue to report to Jérôme Lambert, group chief executive officer.

Johann Rupert, Jérôme Lambert and Burkhart Grund, chief finance officer, will remain on the senior executive committee and will stand for re-election to the board of directors at the AGM.

In addition, Alan Quasha, non-executive director of the company and its predecessor companies since the group’s foundation in 1988 will not seek re-election to the board in September.

Commenting on the proposals, Johann Rupert, Richemont Chairman, said: “While the enlarged SEC structure proved effective in the early stages of our transformation journey and in navigating one of the most trying times in recent history, the time is ripe for a more streamlined structure as we embark on the next stage of our development.”