Retail in Asia


Richemont Asia sales up 3 percent as region returns to growth

Swiss luxury conglomerate Richemont announced on November 11 revenues for the six months ending September 30 surged 24 percent to EUR 9.7 billion (USD 10.06 billion).

The owner of Cartier, Chloe and Net-a-Porter said the half-year sales increase was pushed on by double-digit sales growth across all business areas, channels and regions, except in Asia-Pacific, which saw a return to growth during the six months.

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In Asia Pacific, sales grew by 3 percent at actual exchange rates as the impact of recurring temporary boutique closures in mainland China was offset by robust performances in other Asian markets, in addition to positive foreign exchange impacts. In constant currencies, sales in the Asia Pacific region returned to growth during the second quarter but contracted by 5 percent for the six-month period.

“Growth was led by the retail channel which, together with the online channel, contributed 73 percent of group sales,” said Johann Rupert, Richemont chairman.

“In terms of business areas, all grew profitably, with the highest growth rates in sales at 27 percent, recorded by the ‘Other’ segment mostly composed of fashion and accessories maisons, and the highest profitability at 37.1 percent, generated by the jewellery maisons.”

Total profit for the period from continuing operations rose to EUR 2.1 billion, an increase of EUR 602 million, or 40 percent, compared to the prior-year period.

SEE ALSO: Richemont APAC sales down 15 percent last quarter while Japanese market surges 83 percent

The earnings update coincided with the news that two of Richemont’s non-executive directors, Ruggero Magnoni and Jan Rupert, stepped down from the board.

The board’s size has been reduced to 16, with female representation reaching 31 percent. Richemont said it is also looking to further diversify its board with representation from the Americas and Asian regions.