Richemont sees sales surge but performance hampered by YNAP loss
The retailer also continued its sustainability drive by reducing its energy usage in boutiques and offices across Europe by 10%
Luxury jewellery retailer Richemont has reported strong sales and profit increase for the first half of the year but the performance was overshadowed by the impact of its disposal of Yoox-net-a-Porter (YNAP)
The company, which owns brands such as Cartier and IWC Schaffhausen, made nearly €9.7bn (£8.5bn) this half year up from nearly €7.8bn (£6.8bn) last year, an increase of 24%. It also reported an operating profit of €2.7bn (£2.4bn).
As a result the company posted profits from continuing operations of €2.1bn (£1.8bn). However, the company’s overall performance was hampered by a €2.7bn charge (£2.3bn) from discontinued operations as a result of its agreement with Farfetch and Alabbar to sell a controlling interest in YNAP.
As a result Richemont reported a net loss for shareholders of €760m (£665m).
Richemont still holds 49.3% of YNAP and gained between 12-13% shares in Farfetch as part of the deal.
The retailer also continued its sustainability drive by reducing its energy usage in boutiques and offices across Europe by 10%. The company believes it is on track to source 100% renewable energy by the end of 2025.
Chairman Johann Rupert said: “Compared to the prior-year period, double-digit sales increases were recorded, at actual exchange rates, across all business areas, channels and regions excluding Asia Pacific where sales grew by 3%. Growth was led by the retail channel which, together with the online channel, contributed 73% of group sales.
“With a 24% sales growth overall and higher sales in all regions and distribution channels, our Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, reaffirmed their leading position. To further support their strong development, manufacturing sites are being expanded, operational teams reinforced, and communication initiatives intensified.”
