Richemont reports negative results for year ending March 2010
World’s second largest luxury group RICHEMONT announced this week its financial report for the year ending in March 2010. Total sales for the entire group dropped by 4% compared to the previous year, to a total of EUR million 5 176. The operating profit dropped by 14% from EUR 968 million in 2009 to EUR 830 million in 2010. The lowest sales decrease, of 3%, was registered by the jewellery maisons division, which makes up to 52% group sales.
In Europe, which is Richemont’s number one market by region accounting for 40% of consolidated sales, the group sales dropped by 11%, especially Western Europe, with some countries in Eastern Europe being more resilient. US and Japan also registered negative results with 20% and 12% sales drops respectively. Asia Pacific was the only region to grow, with sales increasing by 18%.
CEO of Richemont, Mr Johann Rupert emphasized the company’s results were satisfying given the economic conditions and the group companies reacted ”quickly and positively to the downturn in demand and have grown market share”. Some of the drastic measures taken included closing directly operated boutiques and reducing the number of third party distribution points, especially in the United States.
Sales in the first quarter of 2010 have continued to follow the trend seen in the pre-Christmas period and sales in the month of April were 24 per cent above the prior year’s depressed levels, primarily driven by wholesale sales.
The Group’s luxury goods interests encompass several of the most prestigious names in the industry, including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Alfred Dunhill and Montblanc. Richemont also owns fashion brands Chloe, Shanghai Tang, Azzedine Alaia as well as leather accessories brand Lancel.