WWD.com/business-news/financial/richemont-sales-rise-23-6222680/
government-trade
government-trade

Richemont Sales Rise 23%

Weak euro boosts figures in five months ended Aug. 31.

LONDON Compagnie Financière Richemont said sales jumped 23 percent in the five months to Aug. 31.

At constant exchange rates, sales would have grown 13 percent compared to the same period last year, with the firm noting a weakening euro had positively impacted its reported revenues.

The figures — announced ahead of the firm’s annual general meeting today — reflect a strong performance in Europe, where sales grew 23 percent at current exchange rates, buoyed by business at Richemont’s retail locations in major tourist destinations.

Sales in the Asia-Pacific region grew 27 percent at actual currency rates and 12 percent at constant rates, while in the Americas sales rose 19 percent at actual rates and 6 percent at constant rates. Richemont noted the slowing of sales growth in the Americas was partly due to the timing of exceptional sales during the year-ago period.

 

RELATED STORY: Richemont Forecasts 20-40% Jump in H1 Profits >>

 

All divisions notched up growth, with sales at the jewelry maisons rising 23 percent at actual exchange rates and sales at Richemont’s specialist watchmakers rising 26 percent. Sales in Richemont’s other businesses, which include Net-a-Porter and Chloé, rose 26 percent at actual exchange rates during the period.

Johann Rupert, executive chairman and group chief executive officer of Richemont, was cautious about the sales figures, noting that the 13 percent growth at constant exchange rates “includes a declining month-on-month rate of growth.

“Nevertheless, the average represents a strong performance when measured against the 35 percent rate of growth seen in the comparative period last year,” said Rupert.

The executive noted that the firm expects that operating profit for the six months to Sept. 30, which Richemont will report in November, to rise between 20 and 40 percent compared to the same period last year, and that net profit will also increase within that range.

“The prevailing economic uncertainties, the moderation in sales growth since May and the very strong basis of comparison do not prevent us from maintaining our ambitious investment program,” stated Rupert. “Indeed we remain confident in the long term potential of our Maisons.”

Richemont’s shares rose 1.3 percent in morning trading to 59.90 Swiss francs, or $62.79.