Swiss luxury goods group Richemont has reported a +8% increase (at constant exchange rates) in group sales for the year ended 31 March 2019, excluding online retailer Yoox Net-A-Porter Group (YNAP) and Watchfinder.
Richemont took full control of YNAP in May 2018 and then acquired Watchfinder, an omnichannel platform for premium pre-owned timepieces, shortly thereafter. Full-year sales rose 27% including YNAP and Watchfinder [grouped as Online Distributors], to €13,989 million.
Richemont registered growth in all business areas and most regions, including double-digit increases in Asia Pacific and the Americas. Jewellery Maisons, including Cartier and Van Cleef & Arpels, and the retail channel posted the strongest performance.
Among the Specialist Watchmakers, Richemont particularly noted the performance of Vacheron Constantin, Jaeger-LeCoultre and IWC.
Montblanc and Chloé also recorded higher sales.
Group operating profit was up 5% to € 1,943 million. Excluding the impact of Online Distributors and one-time net charges of €118 million, the operating margin increased to 19.5%.
Profit for the year rose to €2,787 million, including a post-tax non-cash gain of €1,378 million on the revaluation of YNAP shares held prior to the takeover.
Richemont Chairman Johann Rupert described the year under review as “one of transition and consolidation”. He said: “Across the business areas, we are starting to see the benefits of recent initiatives targeting the qualitative improvement of our distribution network, the right-sizing of watch inventories at our multi-brand retail partners, and the adjustment of supply to the true level of end-customer demand.”
Assessing the company’s future outlook, Rupert said Richemont was “determined to ensure that our unique Maisons remain attractive and compelling both with the timeless and unique creations they design, craft and sell as well as the way they engage with clients through memorable service and experiences, in both the physical and digital worlds”.
He added: “We will continue to encourage an innovative and entrepreneurial mindset among our colleagues. We will foster a collaborative and inclusive working environment where talent thrives and sustainability is embedded across all our operations.”
