Richemont Sales Increase, but Profits hit by Exchange Rates
June 17, 24(IDEX Online) - Richemont says sales at its three jewelry maisons increased by 5.7 per cent in the year to 31 March 2024.
Cartier, Van Cleef & Arpels and Buccelatti reported a combined revenue of $15.3bn, the Swiss-based luxury conglomerate said in its annual report and accounts. The three companies account for almost 70 per cent of Richemont's total revenue.
Operating profits for its jewelry brands did not, however, reflect the rise in revenue. It rose marginally, by 0.6 per cent to $2.9bn, largely because of adverse foreign exchange movements.
Richemont's eight luxury watch brands - including A. Lange & Sohne, Baume & Mercier, IWC Schaffhausen and Jaeger-LeCoultre fared less well than its jewelry maisons.
Sales fell by just under 3 per cent to $4bn, and operating profits were down 22 per cent to $614m.
Richemont said total sales across all sectors were $22.1bn, up 3 per cent at actual exchange rates (up 8 per cent at constant exchange rates) but profits at actual exchange rates were down almost 5 per cent.
Chairman Johann Rupert said the company had delivered a "solid underlying performance" for the year, despite unfavorable foreign exchange movements, demanding comparatives and ongoing macroeconomic and geopolitical uncertainties.
Pic shows Richemont's HQ in Geneva.