Richemont has released its first set of financial results that show the impact of completing acquisitions of Watchfinder and Yoox Net-A-Porter (YNAP) this year.
For the five months ending August 31, sales increased by 25% at constant exchange rates and by 22% at actual exchange rates.
Were it not for the acquisitions, which have been consolidated in the Group’s accounts since May 1 for YNAP and June 1 for Watchfinder, sales for the five months would have increased by a more modest 7% at actual exchange rates.
Total sales for the five months were €5.7 billion, of which the new Online Distributor division that houses YNAP and Watchfinder, contributed €720 million.
The financial update came after Richemont’s annual general meeting, at which Jérôme Lambert’s promotion to the post of CEO was confirmed.
Double digit sales growth during the first five months was primarily driven by strong performance by the Jewellery Maisons, comprising Cartier, Piaget and Van Cleef and Arpels, where sales grew 14%. Retail sales increased by 14%, with growth in all regions, most notably in Asia Pacific and the Americas. Retail sales were driven by strong performances by the Jewellery Maisons and the Specialist Watchmakers. Wholesale sales increased 2%, reflecting our continued focus to align inventories with end-client demand, the company says.
All regions, with the exception of the Middle East, posted growth, led by solid momentum in Asia Pacific and the Americas. Hong Kong, Korea and Macau all generated double digit increases while China showed good growth. Europe had mixed performances throughout the region and was impacted by the strength of the euro and a challenging year-on-year comparison in the United Kingdom. In Japan, growth reflected both higher domestic and tourist spending.