Compagnie Financière Richemont SA reported an 18 percent uptick in full-year net profits on the back of strong sales of luxury watches and jewelry, as well as healthy growth in Europe and Asia.
The world's second biggest luxury goods group said profits for the year ended March 31 reached 1.57 billion euros, or $2.2 billion, up from 1.3 billion euros, or $1.87 billion, the previous year. Dollar figures have been converted at average exchange.
The company attributed growth to sustained demand for brands within its specialist watchmaking division, which includes IWC, Jaeger-Le Coultre and Panerai. Sales at the division spiked 15 percent to 1.37 billion euros, or $1.93 billion. Meanwhile, sales at Richemont's jewelry houses, which include Cartier and Van Cleef & Arpels, rose 9 percent to 2.65 billion euros, or $3.73 billion.
The company also highlighted the performance of the Asia-Pacific region, despite a negative impact from currency fluctuations. The region, which represents 25 percent of group sales, registered a rise of 21 percent in revenues. The company said growth was particularly strong in Mainland China and Hong Kong.
Overall, full-year sales at Richemont grew 10 percent to 5.3 billion euros, or $7.4 billion, from 4.8 billion euros, or $6.8 billion.
"Richemont's performance during the past year has demonstrated its capacity to weather the challenging economic environment," said Johann Rupert, executive chairman of Richemont, Thursday. "We see the global market for true luxury goods as continuing to expand, as customers seek more sophisticated, authentic and elegant products."
Compared with the performance of the group's jewelry and watch houses, sales at Chloé inched up only marginally. While Richemont didn't break out figures for the fashion brand, it said sales were broadly in line with the previous 12 months. Slower growth at Chloé is in stark contrast to the previous financial year when turnover shot up 50 percent thanks to an expanded retail network.
"It's not unusual at a fashion house for an individual collection to be not as well received by the customer [as] the year before," said Norbert Platt, group chief executive of Richemont, during a conference call to discuss the results. "Part of the reason was that we felt the previous designer [Paulo Melim Andersson] was not focusing on the true DNA of Chloé, we've not seen growth [in the line]. We're making changes in design for the next collection to come."
Assouline is paying homage to the late Azzedine Alaïa with a reprint of "Alaïa Livre de Collection.” The book is comprised of photographs of the designer's summer 1992 runway show with models Christy Turlington Burns, Naomi Campbell and Tyra Banks, pictured here at right. #wwdfashion #alaia #tyrabanks
Fall 2018 accessories take on a painterly hue, with Nebulas Blue among Pantone’s top 10 colors of the season. (📸: @jonghyupstudio ; editor: @twallz21 ; stylist and set designer: @haideefindlaylevin ) #wwdaccessories
@americanapparelusa is relaunching the brand outside of the U.S. today, opening its online store to more than 200 countries. The company is also contemplating a return to brick-and-mortar, though details have not been confirmed. In tandem with the expanded distribution is a recasting of a social media ad campagn, called “Back to Basics,” pictured here, with a focus on diversity and a cast of models above the age of 21. Read more on WWD.com #wwdnews #wwdfashion
Exclusive: @britneyspears is continuing to expand her brand. The pop icon, who appears in @kenzo ’s latest campaign, is partnering with Epic Rights to launch a line of branded merchandise. Read @hernameislex ‘s story, link in bio. #wwdnews #britneyspears
The Duchess of Cambridge channeled Princess Diana’s look upon giving birth to Prince Harry, when she and the Duke of Cambridge departed the hospital with the new baby Prince this afternoon in London. #wwdeye #princeofcambridge
The new Prince of Cambridge has arrived! The Duke and Duchess of Cambridge posed with the 8-pound newborn. She wore a look from one of her go-to designers, @jennypackham. Tap link in bio for more. #wwdeye #princeofcambridge
Jewelry label @alisonlou has made a name for itself with fine jewelry that speaks to the Millennial market. Now @twallz21 reports that the label is bringing those playful ideas to a new affordable line of lucite hoops with the launch of Loucite by Alison Lou. Here’s a look from the line modeled by @emrata. #wwdaccessories
@sarahjessicaparker and @gilt are teaming up on a bridal ready-to-wear line. Tomorrow, Parker will launch SJP by Sarah Jessica Parker Bridal — and as part of the launch, Gilt will offer 15 exclusive styles from the SJP by Sarah Jessica Parker footwear collection that were designed to complement the new line. Made out of 10 styles, the line is designed for a variety of occasions, from bridal showers to receptions. Get more details on WWD.com #wwdfashion