Growth across core geographies boosts Richemont's sales and profit

Compared to the prior year, sales at Richemont grew by 46 percent at actual exchange rates and by 44 percent at constant exchange rates to 19,181 million euros, as growth rebounded in all major markets and distribution channels.

The company said strong sales growth rates experienced throughout the first three quarters of the fiscal year continued into the fourth quarter with overall group sales expanding by 33 percent at actual exchange rates and by 27 percent at constant exchange rates, despite the impact of the conflict in Ukraine and tighter health restrictions in China, leading to temporary distribution network closures in March.

Compared to the year ended 31 March 2020, sales grew by 35 percent at actual exchange rates and by 37 percent at constant exchange rates.

“Richemont’s 5.3 billion euros net cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the group is well positioned to benefit from any strength in consumer demand,” said Compagnie Financière Richemont SA chairman Johann Rupert.

Highlights of Richemont’s full year results

In the year under review, the company added, double-digit sales growth was seen in all geographies compared to the prior year, led by the Americas at 79 percent, with Asia Pacific further building on its strong performance in the prior year. On a two-year comparative basis, sales in all regions exceeded pre-pandemic levels on a constant currency basis.

The group’s directly-operated stores generated the strongest channel performance with sales up by 53 percent compared to the prior year and by 51 percent compared to the year ended March 2020. Online retail and wholesale sales grew by 28 percent and 46 percent compared to the prior year, respectively. Excluding online distributors, sales through the Maison’s own e-commerce platforms grew by 44 percent.

The group’s all business areas enjoyed double-digit sales increases compared to the prior year and the year ended March 2020. The jewellery maisons generated 49 percent sales growth over the prior year and a 54 percent increase over the two-year period. Sales at the specialist watchmakers and the other business areas each grew by 53 percent, with all maisons growing by double digits compared to the prior year.

Compared to two years ago, the above business areas grew by 20 percent and 15 percent, respectively, with almost all maisons growing by double digits. Online distributors posted a 27 percent sales increase over the prior year and a 15 percent increase compared to two years ago.

Richemont’s operating performance during the year under review

At 12, 027 million euros, gross profit increased by 53 percent compared to the prior year, with a corresponding gross margin increased to 62.7 percent of sales, a 290 basis point improvement compared to the prior year.

Operating profit more than doubled compared to the prior year, increasing by 129 percent to 3, 390 million euros or 17.7 percent of sales, constituting a 650 basis point improvement.

Profit for the year amounted to 2, 079 million euros, an increase of 61 percent over the prior year, while earnings per share reached 3.611 euros on a diluted basis, up 57 percent over the prior year.