LONDON – Compagnie Financière Richemont, parent of brands including Carter, Van Cleef & Arpels and IWC, saw sales and profits climb in fiscal 2019, bolstered by the recent addition of online businesses Yoox Net-a-porter Group and Watchfinder & Co. to the luxury giant’s growing portfolio.
In the 12 months to March 31, sales climbed 27 percent to 13.99 billion euros, while profit rocketed 128 percent to 2.79 billion euros. Profit benefitted from a one-off, non-tax accounting gain of 1.38 billion euros on the revaluation of the YNAP shares before Richemont bought the remaining stake in the company that it didn’t already own.
Stripping out the impact of the new online businesses, which were added in May and June of last year, Richemont’s sales for the period grew by 8 percent at both actual and constant exchange rates.
Richemont said its jewelry maisons, such as Cartier, and the retail channel, posted the strongest performance. The company added that it saw growth in all business areas and most regions, with double-digit progression in Asia-Pacific and the Americas and double-digit increases in the directly operated boutiques of jewellery maisons and specialist watchmakers
“Most of our markets were in positive territory, led by double-digit increases in the U.S. and in all the main markets of Asia-Pacific,” said Johann Rupert, the company’s chairman, who described 2019 as a year of “transition and consolidation.”