LONDON – Richemont ended its year on a high with sales climbing 11 percent at constant exchange to 22.4 billion euros in the period ending on March 31.
The luxury giant, owner of brands ranging from Cartier and Van Cleef & Arpels to Chloé, said that fourth-quarter sales were up 13 percent, compared with 11 percent in the previous quarter.
Sales during the year were fueled by growth in all business areas, regions and distribution channels at constant rates as well as by sustained double-digit performance at jewelry maisons and in the Americas throughout the year.
Operating profit climbed 23 percent at constant exchange to 4.5 billion euros, bolstered by strong top-line growth and cost discipline, which Richemont said mitigated the effect of weaker main trading currencies and higher raw material costs.
Profit for the period rose to 3.5 billion euros from 2.8 billion euros, due in part to the non-recurrence of the Yoox Net-a-porter write-down in the prior year.
At actual exchange rates, sales for the year were up 5 percent, while operating profit rose 1 percent.
The company’s founder and chairman Johann Rupert said that in a persistently volatile geopolitical environment, the group delivered “strong growth and solid results, reflecting the resilience of its business model, the strength of its maisons, the enduring agility and creativity of its teams and the benefits of its balanced regional footprint.”
He said performance was driven by “a clear long-term approach, centered on differentiation, strong brand identity and disciplined pricing. While each maison operates within its own market sector dynamics, the success of many collections highlights the importance of nurturing strong creativity consistent with a clear and distinctive identity, supported by consistent execution over time.”
Rupert said that the macroeconomic uncertainty is likely to persist, “not least in relation to developments in the Middle East. Against this backdrop, the group remains vigilant and will continue to rely on its long-term orientation and disciplined operating approach to enchant clients, maintain the desirability of its Maisons and deliver sustainable value over time for all stakeholders.”
