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.
Yesterday, the Parisian fashion house @azzaro_official cut the ribbon on a temeporary retrospective at the wing of the Musée des Arts Décoratifs in Paris. The exhibition, which shows the lasting influence of the brand’s founder Loris Azzaro, is titled “Azzaro, Fifty Sparkling Years” and presents 50 looks. In it’s ’70s heyday, fans of the brand included Jane Birkin, pictured here, Raquel Welch, Brigitte Bardot and more. See more photos on WWD.com #wwdfashion
@trinaturk and @macys Inc International Concepts line are linking up on a collection for summer — filled with accessories, swimwear and shoes. The collection will also include a Mr Turk men’s line, both of which are the designer’s first entry into a more accessibly priced area. “It’s very world-traveler, gypset-inspired,” said Turk. The Trina Turk x INC line will launch on May 15th. #wwdfashion
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