UK markets closed
  • NIKKEI 225

    28,868.91
    -2.89 (-0.01%)
     
  • HANG SENG

    19,830.52
    -210.38 (-1.05%)
     
  • CRUDE OIL

    86.95
    +0.42 (+0.49%)
     
  • GOLD FUTURES

    1,790.40
    +0.70 (+0.04%)
     
  • DOW

    34,152.01
    +239.61 (+0.71%)
     
  • BTC-GBP

    19,730.58
    -289.25 (-1.44%)
     
  • CMC Crypto 200

    569.15
    -2.76 (-0.48%)
     
  • ^IXIC

    13,102.55
    -25.55 (-0.19%)
     
  • ^FTAS

    4,166.38
    +11.29 (+0.27%)
     

RICHEMONT ANNOUNCES DOUBLE-DIGIT SALES GROWTHFOR THE FIRST QUARTER ENDED 30 JUNE 2022

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·6-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Compagnie Financière Richemont SA / Key word(s): Quarter Results

15-Jul-2022 / 07:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Highlights

  • Positive start to the financial year with double-digit sales growth both at actual exchange rates (+20%) and constant exchange rates (+12%)

  • Strong performance driven by higher sales in Europe, Americas, Japan and the Middle East and Africa more than offsetting lower sales in Asia Pacific; the US, Richemont’s largest single market for the quarter, comprising 22% of Group sales

  • Growth led by retail, now accounting for 58% of Group sales compared to 55% in the prior year period

  • Sales growth across all channels and business areas, both at constant and actual exchange rates:
    Jewellery Maisons delivering sales growth of 20% at actual exchange rates (+12% at constant rates) 
    - Specialist Watchmakers growing by 18% at actual exchange rates (+10% at constant rates)
    - Online Distributors increasing by 8% at actual exchange rates (+2% at constant rates)
    - Other business area progressing strongly by 36% at actual exchange rates (+28% at constant rates)

April-June

2022

2021

% change 2022 vs 2021

 

€m

€m

constant rates

actual rates

By region

 

 

 

 

Europe

1 290

905

42%

43%

Asia Pacific

1 780

1 933

-15%

-8%

Americas

1 344

955

25%

41%

Japan

421

240

83%

75%

Middle East and Africa

429

364

6%

18%

 

 

 

 

 

By distribution channel

 

 

 

Retail

3 051

2 421

18%

26%

Online retail

910

809

5%

12%

Wholesale & royalty income

1 303

1 167

4%

12%

 

 

 

 

 

By business area

 

 

 

 

Jewellery Maisons

3 015

2 515

12%

20%

Specialist Watchmakers

1 002

849

10%

18%

Online Distributors

691

637

2%

8%

Other 

600

440

28%

36%

Inter-segment eliminations

-44

-44

-6%

-

 

 

 

 

 

Total

5 264

4 397

12%

20%


Review of trading in the three-month period ended 30 June 2022 versus the prior year, at constant exchange rates

All channels and business areas, as well as most regions, generated sales growth versus the prior year period notwithstanding an uncertain environment and demanding comparatives following a 129% sales rebound in the prior year comparable period.

The 12% sales growth delivered in the quarter ended June 2022 was driven by strong double-digit increases in Europe, the Americas and Japan. Sales in Europe grew by 42% sustained by robust domestic demand and a return in tourist spending, primarily from American and Middle Eastern clients. Growth was strong across markets, particularly in France where sales increased by triple digits. In Asia Pacific, the strict enforcement of a zero covid policy led to double-digit sales declines in mainland China and Macau SAR (China) and to a single-digit sales reduction in Hong Kong SAR (China). Sales in mainland China were 37% lower for the quarter, although the rate of decline softened to 12% in June when restrictions were progressively eased. The solid momentum across most other Asian markets, notably in Australia, Singapore, South Korea and Thailand, partially mitigated the decline of sales in the region, with sales in Asia Pacific overall contracting by 15%. In the Americas, sales rose by 25% notwithstanding demanding comparatives against the prior year period, driven by strong domestic spending. As a result, for the quarter the US was Richemont’s largest single market, accounting for 22% of Group sales. Japan posted the strongest regional performance with an 83% growth in sales, supported by strong local demand. Sales in the Middle East and Africa increased by 6% on demanding comparatives, reflecting solid domestic and tourist spending, notably in Dubai and Qatar.

All channels recorded sales growth, with retail posting the strongest relative channel performance. Retail sales rose by 18%, driven by double-digit increases across all business areas, and noteworthy performances in Europe, the Americas and Japan. Online retail sales increased by 5%, reflecting muted sales progression at the Group’s Online Distributors and strong growth at our Jewellery Maisons and Specialist Watchmakers. Direct sales to clients for the Group as a whole represented 75% of Group sales, a circa 200-basis points increase over the prior year period. Sales in the wholesale channel increased by 4% as higher sales at our Other business area more than offset lower wholesale sales at our Jewellery Maisons and Specialist Watchmakers which were impacted by ongoing Covid-related restrictions in China.

Despite the disruption experienced in China, the Jewellery Maisons generated a 12% sales growth benefitting from thriving retail sales and solid jewellery and watch sales at Buccellati, Cartier and Van Cleef & Arpels. Sales progressed in all regions and channels, excluding Asia Pacific and wholesale. The Specialist Watchmakers’ sales increased by 10%, driven by online and offline retail sales, which together contributed to 53% of the business area sales. Growth was achieved in most Maisons and regions with an ongoing outperformance of A. Lange & Söhne, Panerai and Vacheron Constantin. The Group’s Online Distributors recorded a 2% sales progression and continue their shift towards a hybrid business model. The Group’s Other business area, mostly composed of our Fashion & Accessories Maisons, posted the strongest sales increase at +28%, supported by strong retail and wholesale sales with sustained demand across most Maisons and regions. Peter Millar continued to deliver a robust performance while Delvaux posted a strong contribution, and the renewed creativity supported by new designers at Alaïa, Chloé and Montblanc positively impacted sales.

The Group’s net cash position at 30 June 2022 was € 5.4 billion (2021: € 3.6 billion), reflecting the quarter’s strong trading as well as replenishment of inventories.

Corporate calendar

The annual general meeting will be held on Wednesday 7 September 2022 in Geneva. The interim results for the current financial year will be announced on Friday 11 November 2022.

About Richemont

At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont’s ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.

Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, THE OUTNET, YOOX and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar including G/FORE, Purdey and Serapian. Find out more at www.richemont.com.

Richemont ‘A’ shares are listed on the SIX Swiss Exchange, Richemont’s primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont’s secondary listing.

Investor/analyst and media enquiries

Sophie Cagnard, Group Corporate Communications & Investor Relations Director 
James Fraser, Investor Relations Executive

Investor/analyst enquiries: +41 22 721 30 03; investor.relations@cfrinfo.net
Media enquiries: +41 22 721 35 07; pressoffice@cfrinfo.net; richemont@teneo.com


End of ad hoc announcement

Language:

English

Company:

Compagnie Financière Richemont SA

Chemin de la Chênaie 50

1293 Bellevue

Switzerland

Phone:

+41227213506

E-mail:

pressoffice@cfrinfo.net

Internet:

http://www.richemont.com

ISIN:

CH0210483332

Valor:

21048333

Listed:

SIX Swiss Exchange

EQS News ID:

1398499


 

End of Announcement

EQS News Service

show this
show this
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting