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.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye