Richemont profits soar on demand for luxury goods
Friday 20 May 2011
The world's second-biggest luxury goods company, Richemont, said strong demand for its jewellery and watches had produced a surge in its annual profits and sales.
The Swiss group, which owns the Cartier jewellery, Montblanc pens and Chloe fashion brands, expanded its sales in all its regions but growth was strongest in Asia-Pacific, where sales were helped by exceptionally high demand in China.
It said that Net-a-Porter – the online luxury fashion retailer it acquired for €245m in April 2010 – also "generated a positive cashflow and performed above plan", as the sales came in at €274m (£242m). For the year to 31 March, Richemont's pre-tax profits rose by 83 per cent to €1.28bn, on sales up by a third at €6.89bn.
Johann Rupert, the executive chairman, said: "We have enjoyed record sales and profits from our jewellery [houses] and specialist watchmakers, despite the stronger Swiss franc. Profitability at Montblanc improved, with progress also being seen in the performance of fashion and accessories." Sales in the company's Asia-Pacific division rose by 36 per cent at constant exchange rates to €2.57bn. In the Americas sales were up 30 per cent at €998m and in Europe they increased by 20 per cent to €2.59bn.
In Japan sales rose by only 1 per cent to €737m, as a result of the "significant appreciation" of the yen. The earthquake on 11 March had only a "minimal impact" because it was close to Richemont's year-end. But analysts voiced concerns about its operating margin, which fell to a lower-than-expected 16 per cent in the second half.
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Why I'm on the brink of burning my Israeli passport
- 2 Japanese plant experts produce 10,000 lettuce heads a day in LED-lit indoor farm
- 3 War is war: Why I stand with Israel
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Israel-Gaza conflict: Death toll tops 125 after overnight raids as Operation Protective Edge continues
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: Pro-Palestinian demonstrators take to streets of London, Paris and New York in wave of protests
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...