Swiss firm Richemont's sales up 3% to $22.33 bn in FY24

Asia Pacific saw a 4 per cent sales increase at actual exchange rates, which included a 7 per cent growth in mainland China, Hong Kong, and Macau combined. The Americas achieved a 1 per cent sales growth, with increased momentum in the second half of the year, surpassing Europe in absolute terms. European sales rose by 2 per cent. Japan reported the strongest regional performance with an 8 per cent sales increase, driven by tourist demand, particularly from China. Sales in the Middle East and Africa rose by 7 per cent, the company said in a press release.

Richemont’s directly-operated stores recorded the highest channel growth, with sales up by 5 per cent at actual exchange rates compared to the previous year. However, online retail sales, excluding those made by YNAP, declined by 6 per cent. Wholesale sales remained steady, representing 25 per cent of group sales.

The ‘other’ business area recorded a €43 million loss, though the fashion and accessories maisons reached breakeven. At the group level, operating profit was €4.8 billion. At constant exchange rates, operating profit rose by 13 per cent to 26.2 per cent of sales.

Profit from continuing operations, which included net one-time unallocated charges of €58 million, was solid at €3.8 billion. However, the overall profit for the year was €2.3 billion, after accounting for a €1.5 billion loss from discontinued operations, primarily due to a €1.3 billion write-off.

Gross profit increased by 2 per cent to €14.036 billion, resulting in a gross margin of 68.1 per cent of sales. Adverse foreign exchange movements significantly impacted profitability, leading to a 5 per cent reduction in operating profit from continuing operations to €4.794 billion, and a contraction in operating margin by 190 basis points to 23.3 per cent of sales. At constant exchange rates, operating profit grew by 13 per cent to 26.2 per cent of sales.

Operating expenses increased by 6 per cent over the previous year, outpacing the 3 per cent sales increase. Profit from continuing operations stood at €3.818 billion, a decrease of €93 million compared to the prior year. Earnings per share reached €4.077 on a diluted basis.

Fibre2Fashion News Desk (DP)