Advanced Search

Richemont's FY Revenue +4%, Profit -36%

Jewelry Maisons Observe 'Challenging Environment'

May 22, 2015 11:29 AM   By Jeff Miller
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Richemont's revenue increased 3.9 percent year on year to $11.5 billion (EUR 10.41 billion) in the year that ended on March 31. Sales measured at constant-exchange rates rose 1 percent.  Revenue from the retail division rose 4.1 percent to $6 billion (EUR 5.436 billion), while wholesale revenue increased 3.6 percent to $5.5 billion (EUR 4.974 billion). Profit fell 35.5 percent to $1.5 billion (EUR 1.334 billion), which the company attributed partly to ongoing foreign exchange hedging activities.

The company stated that jewelry maisons Cartier, Van Cleef & Arpels and Giampiero Bodino observed a "challenging environment," however, the division managed to still improve sales 4 percent to $6.2 billion (EUR 5.657 billion) and operating margin to 34.9 percent compared with 34.8 percent on year earlier.

Revenue from the company's specialist watchmakers increased 4.6 percent to $3.5 billion (EUR 3.123 billion), but operating margin fell to 23.4 percent compared with 26.1 percent.

By region and at constant-exchange-rates, sales improved 7 percent in Europe and jumped 13 percent across the Middle East and Africa, while they rose 8 percent in the Americas. Revenue declined 6 percent in both the Asia Pacific region and in Japan.
The value of inventory at the end of the fiscal year jumped 22.1 percent to $6 billion (EUR 5.438 billion), in part due to a significant appreciation of the Swiss franc against the euro. Net cash at the close of the year rose 16.3 percent to $6 billion (EUR 5.419 billion).

Looking ahead, Johann Rupert, the chairman of Richemont, informed shareholders that sales in April, as measured by constant-exchange rates, slipped 8 percent, but by actual rates they rose 9 percent. "The retail channel grew and  significantly outperformed wholesale, where anticipation of worldwide pricing adjustments in May slowed purchases by our wholesale partners. The first two weeks of May indicated some normalization of the wholesale market. We believe that long-term demand for high-quality products will continue to grow around the world."

Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
Tags: Jeff Miller, jewellery, revenue, Richemont, sales, watches
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.