The Swiss group reports a very strong performance for the six months to 30 September 2022.
The Richemont group, which owns the Cartier, Chloé and Jaeger-Lecoultre brands, announced a turnover of 9.7 billion euros, up by 24% at real exchange rates (and by 16% at constant exchange rates). All business areas and channels posted double-digit increases. Operating profit increased by 26% to EUR 2.7 billion, resulting in an improved operating margin of 28.1%.
Growth was driven by retail, up 30% at actual exchange rates (and 21% at constant exchange rates), representing 67% of Group sales.
Another strength of the Group was the Jewellery Houses, which recorded sales growth of 24% at actual exchange rates (+16% at constant exchange rates) and an operating margin of 37.1%.
The company saw significant sales growth in all regions, with the exception of Asia Pacific, where sales increased by only 3% at actual exchange rates. This modest pace was due to the impact of recurring temporary shop closures in mainland China.
In the Americas and Europe, the strong sales growth seen in the first quarter of the year continued into the second quarter, with half year sales increasing by 40% and 45% respectively, in actual currencies. European sales, in particular, benefited from the recovery in international tourism, mainly from North American and Middle Eastern customers.
“The political, economic and social landscape in Europe and our other key markets is very uncertain. We only know that we are likely to face volatile periods in the future as central banks seek to contain inflation while governments try to manage strong cost of living pressures. (…) The Group is fortunate to be in good shape, with a clear strategy, highly desirable and sustainable creations, strong Houses, professional teams and a solid balance sheet. These strengths will enable Richemont to weather periods of uncertainty and take advantage of the strength of demand, allowing us to look to the future with a mixture of vigilance and confidence,” said Johann Rupert, Chairman of Richemont.
Richemont also announced last Friday that Patricia Gandji will join the Group’s Senior Executive Committee as Chief People Officer and CEO of the regions, effective 11 November 2022. She brings nearly 30 years of diversified management experience and international exposure in the luxury industry. She joined the Group in 2007 where, until 2016, she held several key positions at Cartier.
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Featured photo : © Cartier
