Richemont reported strong sales growth today across all segments and all geographic regions, despite a volatile and diverse economic environment.
The Group’s Jewellery Maisons and its Specialist Watchmakers have reported record sales and profits, despite the strength of the Swiss franc and the rising cost of precious materials and input costs.
Montblanc has continued to grow and reported increased profits. Richemont’s Fashion and Accessories Maisons also performed well.
Net-a-Porter continues to enjoy sales growth above the Group average, while at the same time investing in structural expansion.
The Jewellery Maisons’ sales grew by 32 % with Cartier and Van Cleef and Arpels performing exceptionally well.
Demand for High Jewellery pieces was solid and more accessible jewellery ranges enjoyed very strong demand. Cartier’s watch collections, including premium and technical pieces, were equally successful.
The Specialist Watchmakers’ sales increased by 31 %. (Last year’s sales and results were negatively impacted by the reorganisation of Baume & Mercier).
Overcoming higher input costs and the strength of the Swiss franc, the operating margin increased to 23 %, reflecting the solid demand for premium watches and strong pricing power.
Sales at Net-a-Porter continued to rise above the Group’s average rate, including the first full year of Mr Porter. The amortisation of intangibles and the costs associated with the continued expansion of Net-a-Porter’s platforms contributed to its overall increase in losses. On a cash basis, Net-a-Porter generated positive results.
Growth for Richemont companies was seen in most geographic areas:
Europe + 20%
Solid double-digit organic growth was registered across the region. Sales in the region were boosted by the growing number of travellers from other parts of the world and Net-a-Porter’s performance. The Middle East and Africa, which accounted for 16 % of sales in the region, reported strong double-digit growth.
Asia-Pacific +46%
Now representing 42% of Group sales, the Asia-Pacific region reported another year of sustained broad-based growth, particularly in Hong Kong and mainland China. The Group’s selective expansion of its retail network in recent years contributed to the strong year-on-year growth.
Americas +30%
The Americas region reported robust double-digit growth reflecting the growing demand for jewellery and watches as well as Net-a-Porter’s performance.
Japan +39%
Sales in Japan grew, notwithstanding the continuing challenges the country faces following the dramatic events of March 2011.
Johann Rupert Richemont's Executive Chairman and CEO commented:
"The enduring appeal and the development potential of each of our Maisons lead us to focus our investment on the Group’s organic growth. Investments are primarily dedicated to the expansion and integration of the Maisons’ respective manufacturing facilities, as well as growth in their retail networks. Selective boutique openings will be focused in growth markets and in tourist destinations around the world.
Our Maisons remain entrepreneurial and innovative businesses at heart. More than ever, we are convinced of their resilience and long-term prospects. We therefore look forward to the future with cautious optimism."
