Compagnie Financière Richemont SA / Key word(s): Quarter Results
RICHEMONT ANNOUNCES FURTHER SALES GROWTH ACCELERATION IN THE THIRD QUARTER ENDED 31 DECEMBER 2021
19-Jan-2022 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Compared to the third quarter ended 31 December 2020:
- Fashion & Accessories Maisons, with sales growth of 37% at constant exchange rates (+40% at actual exchange rates), sustained by Chloé, Montblanc and Peter Millar
- Specialist Watchmakers, with sales growth of 25% at constant exchange rates (+29% at actual exchange rates)
Compared to the third quarter ended 31 December 2019:
Sales rose by 32% versus the prior year period driven by double-digit increases in all regions, channels and business areas, in a relatively supportive economic environment.
The Americas led the growth with sales up by 55%, followed by Europe and Middle East and Africa, where sales grew by 42% and 30%, respectively. Japan and Asia Pacific saw sales increase by 22% and 18%, respectively, with China consolidating at a high level of +7%. Regional sales mix continued to be further rebalanced with Asia Pacific accounting for 38% of Group sales, followed by Europe and the Americas, at 25% and 23% of Group sales, respectively. Japan and Middle East and Africa each contributed 7% of Group sales.
Retail generated the strongest channel performance, with sales up by 45%, followed by online retail sales up by 19% and wholesale sales up by 14%. Direct sales to consumers have further strengthened to reach 78% of Group sales compared to 75% in the prior year period.
The Jewellery Maisons were the strongest performing business area, with sales increasing by 38%, immediately followed by the Group's Other business area (primarily our Fashion & Accessories Maisons) with sales up by 37%. The Specialist Watchmakers also performed markedly well with sales increasing by 25% while the Online Distributors posted 15% sales growth.
Review of trading in the three-month period ended 31 December 2021 versus the three-month period ended 31 December 2019, at constant exchange rates
On a two-year basis, sales exceeded pre-Covid levels across all regions, channels and business areas.
The Americas, supported by strong local demand, saw sales rise by 59%, followed by Asia Pacific with a 47% sales increase. This commendable performance was driven by double-digit growth in most locations, notably in Australia, China and South Korea, notwithstanding renewed temporary public health protection measures. Europe, with sales up by 12%, reflected solid domestic sales across the region that more than compensated for lower tourism spend compared to two years ago, notwithstanding clients from the Middle East and the USA progressively returning to Europe, notably France. The strongest growth (+65%) was generated in the Middle East and Africa, which benefited from increased domestic demand and higher tourist spend driven by Expo 2020 Dubai and the year-end holiday season. In Japan, the surge in local demand led to a 23% sales increase after two declining quarters.
All channels delivered growth, led by the offline and online retail channels that recorded sales growth of 56% and 40%, respectively. This outstanding performance was driven by double-digit growth across all business areas for retail, and increases of double to triple digits for the online retail channel, depending on the business area. Retail sales were particularly robust in China, Dubai, South Korea and the USA. Sales in the wholesale channel were 4% higher than in the comparative period in 2019, sustained by significant sales in China and the USA.
The stellar 57% sales progression at the Jewellery Maisons, comprised of Buccellati, Cartier and Van Cleef & Arpels, was broad-based across product lines and price points. Sales grew double digits in all regions and across all channels. Reaping the benefits of prior investments and client-centric activities, the Specialist Watchmakers saw sales increase by 20%, with double-digit growth in most regions and watch Maisons. At the Online Distributors, sales rose by 19% reflecting strong trading at YOOX and THE OUTNET as well as the solid performance of Watchfinder. The Group's Other business area, composed primarily of the Group's Fashion & Accessories Maisons, posted a 19% increase in sales. Excluding Delvaux for comparison purposes, growth reached 11%. This noteworthy sales performance was driven by Alaïa, Chloé and Peter Millar.
Trading in the nine-month period ended 31 December 2021
Sales over the nine-month period to December increased by 50% at constant exchange rates and by 51% at actual exchange rates compared to the prior year period, a further improvement over the strong performance in the first six months of the financial year. A quarter-by-quarter sales overview is presented in Appendix 1.
The Group's net cash position at 31 December 2021 amounted to € 4.9 billion (2020: € 2.9 billion).
Corporate calendar The Group's results for the financial year ending 31 March 2022 will be announced on Friday, 20 May 2022. The Group's corporate calendar is available on https://www.richemont.com/en/home/investors/corporate-calendar/
About Richemont At Richemont, we craft the future. Our unique portfolio includes prestigious Maisons distinguished by their craftsmanship and creativity, alongside Online Distributors that cultivate expert curation and technological innovation to deliver the highest standards of service. Richemont's ambition is to nurture its Maisons and businesses and enable them to grow and prosper in a responsible, sustainable manner over the long term.
Richemont operates in four business areas: Jewellery Maisons with Buccellati, Cartier and Van Cleef & Arpels; Specialist Watchmakers with A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis and Vacheron Constantin; Online Distributors with Watchfinder & Co., NET-A-PORTER, MR PORTER, YOOX, THE OUTNET and the OFS division; and Other, primarily Fashion & Accessories Maisons with Alaïa, AZ Factory, Chloé, Delvaux, dunhill, Montblanc, Peter Millar, Purdey and Serapian. Find out more at www.richemont.com.
Richemont 'A' shares are listed on the SIX Swiss Exchange, Richemont's primary listing, and are included in the Swiss Market Index ('SMI') of leading stocks. Richemont South African Depository Receipts are listed in Johannesburg, Richemont's secondary listing.
Investor/analyst and media enquiries Sophie Cagnard, Group Corporate Communications Director James Fraser, Investor Relations Executive
The financial information contained in this announcement is unaudited.
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Richemont's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop and a decline in consumer traffic could have a negative effect on our comparable store sales and/or average sales per square foot and store profitability resulting in impairment charges, which could have a material adverse effect on our business, results of operations and financial condition. Reduced travel resulting from economic conditions, retail store closure orders of civil authorities, travel restrictions, travel concerns and other circumstances, including disease epidemics and other health-related concerns, could have a material adverse effect on us, particularly if such events impact our customers' desire to travel to our retail stores.
As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside the Group's control. Richemont does not undertake to update, nor does it have any obligation to provide updates of or to revise, any forward-looking statements.
(c) Richemont 2022
In terms of sales at constant exchange rates, average exchange rates for the year ended 31 March 2021 are used to convert local currency sales into euros for all presented periods. Exchange rate translation effects are thereby eliminated from the reported sales performance.
End of ad hoc announcement
|Company:||Compagnie Financière Richemont SA|
|Chemin de la Chênaie 50|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||1270121|
|End of Announcement||EQS News Service|