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Richemont’s 1H Revenue +15%, Jewelry Sales +18%
Nov 8, 2015 8:48 AM
By Rapaport News
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RAPAPORT... Richemont reported that revenue rose 15 percent year on year
to $6.25 billion (EUR 5.82 billion) for the six months that ended on September
30, on the back of strong jewelry sale figures. The luxury group’s gross margin
dropped one percentage point to 65 percent. Still, gross profit increased 13
percent to $4.07 billion.
Sales at Richemont’s jewelry brands – Cartier, Van Cleef
& Arpels and Giampiero Bodino – grew 18 percent to $3.41 billion. Operating
profit for the sector rose 13 percent to $1.18 billion and operating margin
declined by 1.6 percentage points to 35 percent. Jewelry continues to outperform
watches and now accounts for a third of group sales, chairman Johann Rupert
said.
Sales in the watches division increased 8 percent to $1.88
billion, with operating profit down 13 percent to $431.8 million and operating
margin decreasing 5.4 percentage points to 23 percent.
The rest of the business – Montblanc, fashion and
accessories and watch component manufacturing – saw a 17 percent sales increase
to $961.4 million but posted a loss of $11.8 million compared with a loss of
$18.3 million (Eur 17 million) in the same period in 2014. Positive
performances at the Montblanc, Chloé and Peter Millar brands helped reduce the
deficit, the statement said.
By region, and at actual exchange rates, revenue improved 26
percent in Europe to $2.09 billion and accounts for 33 percent of overall
sales. Strong levels of tourism in the region and the weakness of the euro
against the US dollar and other currencies had a positive effect on sales, the
company statement said.
In the Asia Pacific, sales dropped 3 per cent to $2.12
billion, contributing 34 percent of total revenue. Hong Kong and Macau sales
declined while mainland China saw strong retail sales but weaker wholesale
sales, it said.
Revenue in the Americas grew 19 percent to $948.5 million amid
subdued demand and lower watch sales but growing jewelry sales. Japanese sales
rose 49 percent to $573.6, helped by strong local and tourist demand and a
favorable exchange rate, while Middle East and Africa sales grew 4 percent to
$525.3 million despite unfavorable exchange rate movements, according to the
company.
The rate of sales growth in Europe and Japan reflects strong
demand across jewelry and leather goods, it added.
Overall retail sales grew 26 percent to $3.38 billion at
actual exchange rates, partly reflecting the impact of renovations and the
addition of 26 internal boutiques to the network of maisons, which reached
1,159 stores, the company said. Most of the boutique openings during the period
were in tourist destinations, it added. Wholesale sales increased 4 percent to
$2.87 billion.
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Tags:
Cartier, data, luxury brands, Rapaport News, Richemont, Van Cleef & Arpels and Giampiero Bodino
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