Richemont Annual Sales €4,308 Million

Swiss luxury goods group Richemont reported a net profit of €1,130 million for the fiscal year, a 36 percent jump, closing a 17 percent increase in sales to €4,308 million.

The company said underlying operating profit from the luxury goods businesses, excluding non-recurring net disposal gains, increased by 47 percent to €713 million. Including non-recurring items, operating profit increased to €741 million.

Underlying net profit attributable to unit holders, including the group’s share of the results of British American Tobacco before non-recurring items, increased by 36 percent to €1,130 million. Including the significant impact of non-recurring items in both years, net profit attributable to unit holders declined to €1,094 million

Sales at the group’s jewelry Maisons, Cartier and Van Cleef & Arpels, increased by 15 percent to €2,227 million. Cartier’s new jewelry lines, such as the Caresses d’orchid?es and Pasha ranges have sold well. The highlight of its year was the re-opening of the 13 rue de la Paix store in Paris.

The watch businesses enjoyed a very good year, with sales increasing by 22 percent to €1,063 million, resulting in strong growth in profitability. All of the watchmakers performed well, but special praise must go to Vacheron Constantin in its 250th anniversary year and to A. Lange & S?hne and IWC, which both showed particularly strong growth over the year.

Montblanc continues to benefit from the broadening of its product ranges and the extension of its retail distribution. While writing instruments are at the heart of the Maison, leather goods lines and watches have become established product categories.

The group said in a release that a recent launch of ladies jewelry has also proved to be most successful, however it did not supply any specific details.

European markets account for 42 percent of sales, with France, Italy and Switzerland being the three most important markets in the region. European sales increased 15 percent to €1,811 million, reflecting good performances in most major markets and very high growth in the Middle East and Russia. In contrast, sales in the UK market were flat.

In Japan, jewelry and watch brands benefited from a return of consumer confidence, resulting in overall sales increase of 13 percent during the year totaling €723 million.

Double-digit sales growth were registered in most major markets of the Asia-Pacific region, despite demanding comparative figures, reflected very strong demand for watches in particular. The region closed the year with €899 million in sales.

Sales in China, representing 13 percent of regional sales, increased 48 percent at historic rates. The high rate of growth reflects the group’s continuing investment in this market, Richemont said, including the establishment of distribution subsidiaries and more than 400 points of sale in mainland China.

Sales growth in the Americas reflected the continuing strength of consumer confidence in the United States during the period, with most brands reporting double-digit growth. With €875 million in sales, the region now accounts for 20 percent of group sales .