Image via

Richemont, the Swiss luxury goods group (, announced its unaudited consolidated results for the six month period ended 30 September 2012

Sales grew by 21% to € 5 106 million seeing solid growth across segments, regions and channels, with an operating profit increasing by 28% to  € 1 380 million, benefitting from favourable currency movements.  Profits for the period rose by 52% to € 1 081 million.

Europe accounted for 36 % of overall sales. The region enjoyed good growth, with visitors/travellers driving the above-average increase. The highest growth rates were in the Maisons’ own boutiques in tourist destinations, including the Middle East.
Asia Pacific
Sales in the Asia Pacific region accounted for 41 % of the Group total, with Hong Kong and mainland China the two largest markets. Following two years of exceptionally high rates of sales growth, the rate during the period under review moderated. Sales growth in our Maisons’ own boutiques in the region was well above the increase in sales to wholesale partners, partly reflecting the number of boutique openings in the last two years.
After two years of outstanding sales, the Americas region reported single-digit growth before currency translation effects and represented 14 % of Group sales. Certain exceptional High Jewellery sales took place in the comparative period, primarily in the Jewellery Maisons.
The increase in sales in Japan reflected the continued momentum in all segments.

The Jewellery Maisons’ sales grew by 20 %. Both Cartier and Van Cleef & Arpels generated remarkable results.
The Maisons’ boutique networks reported good growth and benefitted from boutique openings. Demand for High Jewellery pieces and more accessible jewellery ranges was strong. Demand for Cartier’s watch collections was solid.
The significant increase in sales and positive gross margin development generated an operating margin of 37 %.

The Specialist Watchmakers’ sales increased by 25 %, reflecting the worldwide demand for haute horlogerie.
Most Specialist Watchmakers contributed to the significant increase in the contribution margin to 32 %, reflecting the Maisons’ pricing power and operating leverage in an environment where currency fluctuations were supportive.
Montblanc’s sales increased by 10 %: they were primarily driven by watches and currency effects. Compared with other Group businesses, Montblanc benefits less from sales in tourist destinations.

The Maison’s operating margin decreased to 14 %.
Richemont’s Fashion & Accessories Maisons saw double-digit sales growth and operating profits were in line with the prior period at € 25 million.
Sales growth at Net-a-Porter is normalising but continues to exceed the Group’s average. Net-a-Porter reduced its losses during the period, but generated a positive operating cashflow.
Losses at the Group’s watch component manufacturing facilities were in line with the comparative period

Executive Chairman and Chief Executive Officer Johann Rupert commented: 

Richemont is reporting a solid set of results for the first half of this year. The Group’s Maisons benefitted from favourable exchange rates effects, successful product launches as well as strong pricing power.

The increase in net profit was well above the prior period, reflecting both the growth in operating results and the non-recurrence of non-cash losses, which stemmed from the Swiss franc’s appreciation against the euro based on the closing Swiss franc rate.

Richemont’s financial position continues to be strong: the Group’s net cash position is € 3 billion.

Sales growth rates moderated, as evidenced by the October sales which grew by 12 % at actual exchange rates. At constant exchange rates, they were 7 % higher. Richemont is seeing good growth in Europe, supported by Asian tourism which is compensating for slower domestic Asia Pacific sales. Retail continued to lead wholesale, reflecting robust jewellery sales.

For the second half of the year, the comparatives are likely to be impacted by less favourable exchange rates.

With a view to strengthening the manufacturing base and exploiting growth opportunities as they arise, the Group’s Maisons will execute their investment programmes as planned.