THE RICHEMONT GROUP
The global dynamic of the Watch & Jewelry leader in the Luxury Industry is back, and RICHEMONT is on the road to success.
RICHEMONT owns a portfolio of leading international ‘Maisons’ which are recognised for their distinctive heritage, craftsmanship and creativity. The Group operates in three segments: Jewellery Maisons, being Cartier, Van Cleef & Arpels and Giampiero Bodino; Specialist Watchmakers, being A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin; and Other, including Alfred Dunhill, Azzedine Alaïa, Chloé, Montblanc and Peter Millar as well as watch component manufacturing activities. In addition, YOOX-NETAPORTER will be fully part of the Group from now on.
The publication of the annual accounts for the year ending on March 2018, is clearly revealing a new dynamic within the RICHEMONT Group.
All the different measures of RICHEMONT’s transformation agenda engaged by the Chairman Johann Rupert and the management teams are gaining a steady momentum.
Even is the Sales Growth appears to be at +3% (actual change) for a total of €10.9 B, it is a +8%( at constant change), with the Jewelry Brands being at €6.4B (58% of the total) at +9%, with an operating margin being at 29.9% of the sales, and the growth at 28.4% - revealing all the notable excellent dynamic for both CARTIER ( re launch of “Panthère” line) and VAN CLEEF & HARPELS. The Specialist Watch are at €2.7B in sales, still at -6%, but the operating margin is regaining momentum at 9,7% versus 7.8% last year, knowing that strong inventory buy back, measures against the grey markets have been strongly implanted in addition to steady measures on the Sell In- Sell out multi brand retailer’s equation.
Moreover, RICHEMONT has completed the acquisition of the YOOX NET-A-PORTER GROUP trough a voluntary tender offer, marking a very strategic and important mile stone for his strategy. The new disruptive brand strategy launch of Baume is meaningful of the beginning of the new era at RICHEMONT Group.
IN SUMMARY – FINANCIAL HIGHLIGHTS
- Sales increased by 3% at actual rates and by 8% at constant rates to € 10 979 million. Excluding the impact of exceptional inventory buy-backs, sales grew by 7% at constant rates
- Strong retail performance reflecting solid jewelry and watch sales
- Double digit growth in mainland China, Hong Kong, Korea and Macau
- Operating profit grew by 5%; operating expenses rose by 2% excluding prior year’s real estate gain
- Strong generation of cash flow from operations: increase of € 827 million to € 2 723 million
- Proposed dividend of CHF 1.90 per 1 A share/10 B shares, an increase of 6%
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