LONDON — Compagnie Financière Richemont SA, the Geneva-based luxury goods group, said Wednesday that revenues grew 9.8 percent in the financial year ended March 31 to 5.3 billion euros, or $7.5 billion, from 4.82 billion euros, or $6.8 billion.
The company attributed the rise in sales to strong growth in Richemont's specialist watch-making businesses and a growing demand for its luxury goods in the Asia-Pacific region, particularly in China and Hong Kong.
Richemont's brand portfolio includes Cartier, Van Cleef & Arpels, Chloé, Alfred Dunhill, Montblanc, IWC watches and Jaeger-LeCoultre. The company released a trading statement Wednesday and said it would publish full results for the financial year ended March 31 on May 22.
The company's sales also accelerated in the three months ended March 31, with an 11 percent rise in revenues to 1.08 billion euros, or $1.52 billion. In comparison, sales in the three months ended Dec. 31 grew by 8 percent compared with the same period last year. (Richemont did not break out fourth-quarter figures separately.) However, full-year sales growth did slow slightly compared with the year ended March 2007, during which sales grew by 12 percent.
"The strong growth in sales of luxury products during the first nine months continued during the final quarter of the financial year," the company said.
Richemont said sales growth was only marred by the weakness of the dollar and yen, which adversely affected figures in those regions when they were converted into euros. The company said that at constant exchange rates, total sales would have risen 16 percent in the full year.
Goldman Sachs in London called the sale figures "a particularly reassuring set of results," in a research note Wednesday. "[They reaffirm] the resilience of the high end and watch segment in particular," the company added.
Sales at Richemont's specialist watchmaking division were a highlight and grew 15 percent during the period. The company added that IWC and Jaeger-LeCoultre experienced the strongest rise in sales. Meanwhile, sales at the company's jewelry firms rose 9 percent to 2.6 billion euros, or $3.7 billion, from 2.4 billion euros, or $3.4 billion. All figures have been converted from the euro at average exchange rates for the respective periods.Montblanc's sales grew 9 percent over the year, and the company said an increasing proportion of sales had come from the brand's leather goods, watches and jewelry. Lancel's sales declined during the period, during which the company introduced new products at higher price points.
Sales at the company's other businesses, including Chloé, grew 8 percent during the year. The company said Chloé's sales were "in line with the prior year," during which they grew 50 percent. The company said its acquisitions during the year, which included the watch component manufacturer Donze-Baume SA and a stake in Azzedine Alaïa, had contributed to the sales growth of its other businesses category.
By region, sales in Europe and the Middle East, which represent 43 percent of total sales, grew 12 percent during the period to 2.29 billion euros, or $3.2 billion, from 2 billion euros, or $2.9 billion. Sales in the Americas grew by 3 percent at actual exchange rates but, at constant exchange rates, would have risen by 13 percent. Sales in the Asia-Pacific region grew 21 percent to 1.29 billion euros, or $1.83 billion.
However, the company's sales in Japan declined 5 percent during the period to 698 million euros, or $988 million. Richemont described the Japanese market as "challenging throughout the year," and said that its "limited" growth in sales in the region was offset by the weakness of the yen, which meant lower sales in terms of euros.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews