Richemont sales for the six month period grew by 6 percent compared to the prior period at actual exchange rates and by 12 percent at constant exchange rates.
Richemont posts sales growth across core markets
The company said in a statement that sales grew in all regions, with the exception of the Americas. Growth was led by Asia Pacific where sales rose by 14 percent fuelled by a 23 percent progression in mainland China, Hong Kong and Macau combined, following the removal of Covid-related restrictions at the start of the year and the related resumption of travel.
Sales in the Americas contracted by 4 percent, impacted by lower wholesale sales and a relatively weak US dollar over the period. With a 3 percent year-on-year sales increase, growth in Europe remained positive, while sales in Japan rose 2 percent, reflecting the continued return of tourism, notably from mainland Chinese, on the back of a weak yen.
The group’s directly operated store network posted 9 percent growth and now accounts for 69 percent of total sales. The company added that although online retail sales, which exclude sales made by YNAP, declined by 7 percent, direct-to-client sales made up close to three quarters of group sales.
Sales in the wholesale channel grew by 1 percent, reflecting the positive performance in Asia Pacific.
Richemont’s jewellery division records 10 percent increase
Richemont further said that growth was led by the jewellery maisons, where sales increased by 10 percent, while sales at the specialist watchmakers were 3 percent lower. The ‘Other’ business area, including Watchfinder, declined by 1 percent while sales at fashion & accessories maisons were broadly in line with the prior-year period.
The company’s ‘discontinued operations’, comprising YNAP, recorded a 13 percent contraction in sales.
Compared to the prior year, gross profit increased by 5 percent to 6,973 million euros, corresponding to a gross margin of 68.2 percent of sales.
Operating profit decreased by 2 percent to 2, 655 million euros and profit for the period rose by 3 percent to 2, 160 million euros and earnings per share amounted to 2.601 euros on a diluted basis. Excluding YNAP, diluted earnings per share were 3.725 euros.