Richemont Records Efficacious Performance Owing To Online Sales
Compagnie Financière Richemont generated $16.06 billion for its fiscal year. With sales down just 5 percent, the Swiss conglomerate overwhelmed the analyst expectations.
Surpassing the Expectations
Assisted by vital sales for Cartier and Van Cleef & Arpels, and rebounds from the COVID-19 pandemic in Asia, that led to growth in sales for the year in Europe as well as the U.S. The Incessant sales gains as a result of its embrace of e-commerce. The Johann Rupert-run group reported that its profit for the year rose by 38 percent to $1.58 billion, surpassing analyst expectations again. Richmont revealed that sales were still turning around during the fourth quarter ending on March 31, 2021, up 36 percent and 30 percent at constant and actual exchange rates, respectively. The group owns Cartier, Chloé, Alaïa, Net-a-Porter, Dunhill, Piaget, Vacheron Constantin, and Van Cleef & Arpels, and a number of other hard luxury brands pin-pointed the role of the Asian Pacific region, where “year-on-year sales rose by triple digits in the fourth quarter.”
Moreover, it asserted that sales at actual exchange rates “grew by double digits, underpinned by strong sales in mainland China due to a strong local presence of our Maisons.”
Second Largest Luxury Group in Asia
In Asian market, Richemont maintains the title of the second largest luxury goods group, following only behind LVMH, witnessed a double-digit sales increase in its Specialist Watchmakers division in Asia, thanks to “the opening of five flagship stores on Alibaba Tmall Luxury Pavilion and participation in Watches & Wonders fairs in Shanghai and Sanya.” The watches division has benefitted from constant acceleration in sales since the third quarter of Richemont’s financial year.
Incredible Start to the Future
Richmont claims that it is already seeing a strong start into the new financial year, with accelerating trends across all business areas. Bernstein analyst Luca Solca pointed to “what seems a solid beat to consensus on both top line and operating profit built on the outstanding performance of Jewelry Maisons, implying that he continues to see upside for Richemont, as high jewelry and wholesale and Specialist Watchmakers normalize during FY2022.
“Cartier is seeing increased competition from players like Bulgari a stronger Tiffany, could add to the pressure.” which falls under the ownership of LVMH.