Industry News Richemont Group 2018-2019 Results – Solid Growth Boosted by Acquisitions

A 27% growth in sales boosted by E-commerce acquisitions
calendar | ic_dehaze_black_24px By Xavier Markl | ic_query_builder_black_24px 1 minute read

Richemont just announced its audited consolidated results for the fiscal year ended 31st March 2019. At EUR 13.989 million, the luxury conglomerate sales increased by 27% at actual and constant exchange rates. The operating profit grew by 5% to EUR 1.943 million. Profit for the year rose to EUR 2.787 million including a post-tax non-cash gain of EUR 1.378 million on the revaluation of YNAP shares held prior to tender offer.

This strong growth is boosted by the acquisitions reflecting Richemont’s efforts to build direct online sales channels. Online Fashion and luxury retailer YOOX NET-A-PORTER and second-hand watch dealer Watchfinder have been consolidated as of May and June 2018. If the impact of these e-commerce acquisitions is stripped out, the group sales rose by 8%. Richemont reports that sales increased over all business areas and most regions. Performance was especially good in Asia Pacific (+14%) and the Americas (+11%) with double-digit progression. Sales rose 8% in Japan and the performance was stable in Europe (+1%).

Growth accelerated over the last quarter reflecting a rather supportive environment. For reference, sales (excluding e-commerce acquisitions) had risen by 6% over the first 9 months of Richemont’s fiscal year.

By segment, the sales for Jewelry Maisons /Cartier and Van Cleef and Arpels) rose by 10% at EUR 7.083 million. At EUR 2.980 million, sales increased by 10% for Specialist Watchmakers. The Group reports ‘notable performances’ from Vacheron Constantin, IWC and Jaeger-LeCoultre.

For more details and to access the press release, please visit www.richemont.com

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