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Fashion Network
19-05-2025
- Business
- Fashion Network
Richemont annual sales rise, but inventory provisioning hits fashion profit
— the owner of Chloé, Alaïa, Dunhill, Cartier and more — revealed its full-year figures on Friday saying the 12 months to the end of March saw a 'robust' performance. But while there was good news, there were also some negative figures in the report. See catwalk Group sales rose 4% to €21.4 billion with Q4 sales up 8% (or 7% at constant exchange rates) and with its Jewellery Maisons up in double digits for the quarter. Annual gross profit was up 2% at €14.319 billion, although the gross margin fell from 68.1% to 66.9%. Operating profit also fell 7% to £4.467 billion with the operating margin down from 23.3% to 20.9%. But operating profit only fell 4% at constant exchange rates and it included €72 million of non-recurring costs. Profit for the year from continuing operations was down 1% at €3.762 billion and the loss for the year from discontinued operations was just over €1 billion, narrower than the €1.46 billion of the year before, and mainly due to the non-cash writedown of YNAP. However, final profit for the year was up at €2.75 billion from €2.355 billion. Year of change It was a transformational year for the business in which it made a number of key changes, particularly the promotion of Nicolas Bos to CEO; the addition of Italian jewellery Maison Vhernier to the portfolio; and the finalisation of the sale of YNAP to Mytheresa in April. Richemont now holds a 33% stake in the newly created LuxExperience, which owns the YNAP webstores and Mytheresa. As mentioned, one piece of good news was that the company's growth was led by its Jewellery Maisons with full-year sales up 8% at actual and constant exchange rates and the operating margin at 31.9%. See catwalk Also on the plus side, its 'Other' division, which includes the fashion labels, saw sales up 7% at actual and constant exchange rates, although the operating margin was -3.7%. The Fashion & Accessories Maisons' margin specifically was hit by 'inventory provisioning'. More good news came as it said it saw double-digit growth across almost all regions, although Asia Pacific wasn't in that group. Asia Pacific remains a problem for the business and while jewellery was a star category, its Specialist Watchmakers were another problem with sales down 13% and just a 5.3% operating margin. Chairman Johann Rupert said the performance was robust given the 'persistently uncertain macroeconomic and geopolitical environment' as it 'maintained our focus on nurturing Maisons' current and future growth, investing in our distribution network, manufacturing assets and quality craftsmanship.' He added that after a 'resilient' first half, sales performance accelerated in the second part of the year, with a 10% rise in the third quarter followed by the aforementioned 8% in Q4 at actual exchange rates. Over the year, most regions grew in double digits at both actual and constant exchange rates, more than offsetting the decline in Asia Pacific, led by China, 'illustrating the value of our balanced regional footprint'. Notable growth rates included Europe at 10%, the Americas at 16%, Japan at 25% and the Middle East & Africa at 15% (actual exchange rates). Direct to client sales rose further, driven by both retail and online, representing 76% of overall sales. Brand strength Diving deeper into the individual divisions, sales for its 'Other' business area reached € 2.8 billion, an increase of 7% at actual and constant exchange rates, underpinned by faster growth in the second half. All regions other than Asia Pacific grew, with notable double-digit performances in the Americas, Europe and Middle East & Africa. Alaïa recorded another year of strong growth, and Peter Millar maintained its solid momentum. Overall, ready-to-wear sales rose by double-digits across the Maisons, with 'notably an encouraging performance from Chloé'. It added that G/FORE, previously under Peter Millar's umbrella since its acquisition in 2018, was added to Richemont's Fashion & Accessories portfolio as a distinct Maison in February. This 'marks a significant milestone for the Maison, whose products are sold in top golf shops, resorts, department stores and dedicated retail boutiques, reflecting its remarkable success to date'. But despite the plus points, the 'Other' division's operating result was a €102 million loss for the year, resulting in the previously referenced negative margin. Within this, Fashion & Accessories Maisons posted a -2% operating margin when excluding targeted inventory provisioning. The star Jewellery Maisons — Buccellati, Cartier, Van Cleef & Arpels (and Vhernier since October) – saw their sales reach €15.3 billion. Their 8% sales increase, combined with disciplined operating costs and targeted price increases, helped mitigate the impact of higher raw materials costs, notably gold, on profitability. The Jewellery Maisons delivered a €4.9 billion operating profit, up 4% versus the prior year, corresponding to a solid margin of almost 32%. The poor performance at the Specialist Watchmakers had been previously flagged with the company saying in its H1 report six months ago that a slowdown was affecting volumes. This was led by demand weakness in China, but with greater resilience for high-end price segments. While the watch market remained subdued in the second half, some improvement was visible outside of China. The 13% sales fall was partly due to the unit's high exposure to Asia Pacific, particularly to China, while the other regions 'showed resilience'. The rate of decline was softer in the second half of the year, with notable growth in the Americas. While the Maisons 'demonstrated discipline on operating expenses, the overall decline in sales had a significant impact on production and fixed operating costs absorption'. In addition, with its HQ and most of its production located in Switzerland, the strengthening Swiss franc weighed on the division's operating result, which fell to €175 million for the year.
Yahoo
16-05-2025
- Business
- Yahoo
Richemont sales boosted by fine jewelry
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Richemont reported a revenue increase of 4% to 21.4 billion euros, or about $23.9 billion, for the year ended March 31, according to a Friday earnings release. At the company's jewelry brands — Buccellati, Cartier, Van Cleef & Arpels and Vhernier — sales were up 8% to 15.3 billion euros for the year, led by double-digit growth in H2, per the release. The increase was offset by a 13% decline to 3.3 billion euros in the specialty watchmaker division, which includes brands such as Piaget and Baume & Marcier. In Richemont's other division, which includes fashion and accessories brands Chloé, Alaïa and Gianvito Rossi, sales increased 7% to 2.8 billion for the year. The luxury sector continues to post uneven results as consumers pull back their spending on high-end goods. While some companies, such as Aeffe, LVMH and Kering, have recently posted revenue declines, firms including Prada Group and Brunello Cucinelli have seen double-digit increases. At Richemont, the strength of the jewelry category amid other luxury declines helped the company balance challenges elsewhere. Last year, former Van Cleef & Arpels CEO Nicolas Bos was appointed CEO of Richemont, and in the second half of fiscal 2025, the company saw especially robust results, with a 10% revenue increase in Q3 and a 7% revenue increase in the fourth quarter. Most regions posted double-digit growth for the year, with the exception of Asia Pacific, where sales declined 13%. The company said the downturn was driven by a softening in China 'that mostly reflected weak domestic demand and increased mainland Chinese spending abroad.' However, the rest of the Asia Pacific region posted robust growth, per the release, led by the South Korean market. Sales in the Americas increased 16% year over year, and Japan continued to show growth, with sales up 25%. In the combined region encompassing the Middle East and Africa, sales were up 15% for the period. In Europe, sales grew 10% for the year, with notable performances in France, Italy and Spain, per the release. Richemont said that the April sale of Yoox Net-A-Porter to Mytheresa happened outside of its fiscal 2025 reporting period, and that 'the transaction paves the way for both the Mytheresa and YNAP teams, their brand partners and clients alike to fully benefit from the enhanced value propositions and expanded global reach offered by the combined businesses.' Johann Rupert, Richemont's chairman, said in the release that fiscal 2025 was 'a year of progress underscoring the Group's strategic focus' against a complicated landscape. 'As I have said before, ongoing global uncertainties will continue to require strong agility and discipline,' Rupert said, adding that the company's long-term perspective, underpinned by a healthy balance sheet, 'constitutes a proven formula that has delivered seven-fold sales growth over the past 25 years, and remains central to our strategy.' Recommended Reading Amazon and Saks Fifth Avenue launch luxury e-commerce storefront Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-04-2025
- Business
- Yahoo
Jerome Lambert took an unlikely career step down from Richemont's CEO to leading one of its 29 brands—he said he just wanted to return to ‘the job I loved'
We've seen boomerang CEOs and bosses shift to board roles. But in Jerome Lambert's case, moving on looked more like a return to his roots as he went from leading sprawling watch major Richemont to overseeing a single brand under the Swiss company. Lambert spent nearly six years as group CEO at the watchmaking giant until last May. He was then made group COO in June 2024 and, from January, was appointed CEO of Richemont's Jaeger-LeCoultre brand. While examples abound of boomerang CEOs who return to the top job after departing, such as Volvo's CEO Hakan Samuelsson and UBS' Sergio Ermotti, Lambert's slide from the apex of the corporate pyramid to a lower rung in the hierarchy is uncommon. But he says it's a job he volunteered for. 'This opportunity is both a privilege and a homecoming to the craft and heritage that have shaped my career,' Lambert said of his return when it was announced in November. He was the financial controller and CFO at Jaeger-LeCoultre prior to his first stint as its CEO, a role he held for 11 years between 2002 and 2013. He also worked at another Richemont brand, the luxury stationery and bag maker Montblanc. 'It was a privilege to be able to ask Richemont's new CEO [Nicolas Bos] if I could come back to the job I love for a second time,' Lambert told the Financial Times in an interview published Tuesday, ahead of the annual Watches and Wonders trade show in Geneva. To be sure, Lambert's role change came amid a broader reshuffle within Richemont's brands following the retirement of Cartier CEO Cyrille Vigneron. Louis Ferla, previously chief at Vacheron Constantin, took over Vigneron's role. Nicolas Bos, meanwhile, went from being CEO of Van Cleef & Arpels to leading Richemont. Lambert previously had to navigate the ebbs and flows in luxury watch and jewelry demand amid the COVID-19 pandemic. From 2019, the first year he presided over Richemont, the company's sales and profit rose 27% and 20%, respectively. That figure softened before recovering in 2021 when a shopping spree drove luxury profits to record highs. The following slowdown impacted Richemont, too, but the company has begun showing early signs of recovery thanks to strong Asia performance. The story was slightly different over the 11 years that Lambert last led Jaeger-LeCoultre, one of Richemont's specialist watchmakers with nearly 200 years of history and 400 patents. During the 2000s the company honed its focus on affordability while respecting its nuanced horology. Lambert took a classic watch line like Reverso, introduced in 1931, and introduced versions with innovative twists, including the display trio watch, Reverso Grande Complication à Triptyque. While it looked like Lambert had moved on from Jaeger-LeCoultre, it's clear Richemont wants him to shepherd the brand like back in its glory days. According to a February report by Morgan Stanley and LuxeConsult, the Jaeger-LeCoultre underperformed the Swiss watch market last year. It slipped from 10th to 14th in the list of the top 20 Swiss watch brands by sales from 2017 to 2024. Lambert's return is set against a different backdrop than before—but in a good way, he notes. 'Being a rare, old watch is no longer sufficient to express value. Because of that, I believe we are all being pushed to new boundaries in terms of offering greater value,' he said. Lambert added that watchmaking is no longer gatekept in one or a few countries, opening up more doors than earlier. Representatives at Richemont didn't immediately return Fortune's request for comment. This story was originally featured on
South China Morning Post
18-03-2025
- Entertainment
- South China Morning Post
Jewellers as watchmakers: Chanel, Hermès, Bulgari and Van Cleef & Arpels are venturing further into the hallowed halls of horology, bringing artistry – as well as flowers and feathers
Walking through the Palexpo in Geneva during the annual Watches and Wonders event is a veritable sensory overload. There are just so many booths, and so many watches. A visit to the Van Cleef & Arpels booth is something of a reprieve. As though you've wandered into a magical forest. As the then chief executive of the French maison Nicolas Bos (now chief executive of Richemont) once told me, at Watches and Wonders you're surrounded by boys and their toys – cars, boats – and 'here we are with our fairies and our butterflies'. Those fairies and butterflies that flit across the dials of the maison's novelties, however, come with serious horological prowess. Advertisement Lady Arpels Heures Florales Cerisier watch from Van Cleef & Arpels. Photo: Handout Unlike many of the other watch brands you see at the annual trade show though, Van Cleef & Arpels prefers to keep its technical wizardry hidden – not a spinning tourbillon to be seen. It's something Rainer Bernard, head of research and development for watchmaking at Van Cleef & Arpels, has likened to an opera: you see the beauty of the performance, but none of the unsightly rigging behind the scenes. Several of the maison's watches this year scooped prizes at the 'watch Oscars'– aka the Grand Prix d'Horlogerie de Genève (GPHG). Further proof of just how serious these timepieces are. Bernard calls the mechanisms behind the maison's timepieces 'poetic complications', and says these give the watches 'a fourth dimension'. Lady Arpels Pont des Amoureux watch by Van Cleef & Arpels. Photo: Handout 'The movement of elements plays an important role in the story. It can be the movement of two lovers towards each other on a bridge in Paris who meet for a kiss at midnight. … It can be flowers, indicating the hours by being open or not, changing the visual aspect of the garden over time. Often, you must learn how to read the time, as the indication is part of the poetic story – a unique way of reading the time while instilling emotion,' he says. 'Our Poetic Complications invite you always to 'take the time to read the time', which is also a poetic invitation to capture this very precise moment of your life.'
