Double-digit revenue growth for Richemont

Worldwide
Published:  14 January, 2019

The Switzerland based luxury holding has announced a year-on-year sales increase of +25% at actual exchange rates, and +24% at constant exchange rates, in its third quarter ending December 31.

With the consolidation of Yoox Net-A-Porter (YNAP) and Watchfinder regrouped for the first time under the newly created Online Distributors business area, Richemont says that Group sales grew +24% in the quarter. YNAP posted double digit growth across all regions with solid performances across all its business lines, while Watchfinder’s sales expanded more moderately.

Sales are reported to have grown in all regions, with the exception of the Middle East and Europe. “During the latter part of the quarter, sales in Europe were affected by social unrest in France which negatively impacted tourism and led to store closures for six consecutive Saturdays”, said Richemont, adding that the disposal of Lancel in June 2018 also weighed on the year-on-year comparison. The Asia Pacific region recorded a +10% rise in sales, while sales in the Americas rose +9%, benefitting from good performance by the Jewellery Maisons and the Other business area, according to the Group. In Japan, a +7% expansion in sales is said to have been driven by continued domestic and tourist spending, as well as the impact of newly opened directly operated boutiques. Unfavourable currency movements and a strong basis of comparison are said to have weighed on sales in the Middle East and Africa, which declined -13% in the period.

Richemont says the Specialist Watchmakers’ sales in the quarter were in line with the prior year period, with lower wholesale sales offset by higher sales in the Specialist Watchmakers’ directly operated boutiques. The +1% sales increase in the Group’s other businesses included the impact of the disposal of Lancel. Excluding this impact, sales rose by a mid-single digit rate.

As previously reported by ILM, Italian leather goods Group, Piquadro, acquired the Lancel brand in June 2018. The brand is said to have greatly contributed to Piquadro’s increase in revenue for the nine months ended December 31. Read more here.