Latest news with #YNAP
Yahoo
19-05-2025
- Business
- Yahoo
Cartier owner Richemont posts 4% sales growth in FY25
Richemont, owner of Buccellati, Cartier and other luxury brands, has announced a 4% increase in sales at both actual and constant exchange rates in fiscal 2025 (FY25), resulting in total sales of €21.39bn ($23.89bn) compared with €20.62bn in FY24. This growth was primarily driven by performance from its Jewellery Maisons, which saw an 8% rise in sales at actual and constant exchange rates and an operating margin of 31.9%. The company experienced double-digit sales expansion across all regions except for Asia Pacific. But the Specialist Watchmakers segment witnessed a downturn, with a 13% decrease in sales at actual and constant exchange rates and an operating margin of 5.3%. Richemont's operating profit for the year experienced a decline of 7%, falling from €4.79bn in FY24 to €4.47bn in FY25. The company's gross profit saw a modest increase of 2%, up to €14.32bn in FY25 from €14.04bn in the previous year. Profit from continuing operations stood at €3.76bn, marking a slight decrease of 1% from the previous year. This figure includes an improvement in net finance costs by €125m to €53m. The loss from discontinued operations totalled €1.01bn for the year, including a significant write-down of €954m on the net assets held for sale related to YNAP (the YOOX NET-A-PORTER group) and reflecting the valuation of Mytheresa shares as of 31 March 2025. Consequently, Richemont's profit for the year amounted to €2.75bn. Its earnings per share on a diluted basis reached €4.671 in FY25, against €4.077 in the previous fiscal year. Richemont chairman Johann Rupert stated: 'Richemont delivered a robust performance for the financial year ended 31 March 2025. In a persistently uncertain macroeconomic and geopolitical environment, we maintained our focus on nurturing Maisons' current and future growth, investing in our distribution network, manufacturing assets and quality craftsmanship.' Mytheresa completed the acquisition of YNAP from Richemont in April 2025 after securing unconditional clearance from the European Commission. "Cartier owner Richemont posts 4% sales growth in FY25" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Fibre2Fashion
19-05-2025
- Business
- Fibre2Fashion
Switzerland's Richemont's 2025 sales hit $23.97 bn amid retail growth
Switzerland-based luxury goods holding company Richemont has reported group sales of €21.4 billion (~$23.97 billion) in 2025 ended March 31, reflecting up 4 per cent year-over-year (YoY) on both actual and constant exchange rates. Operating profit decreased by 7 per cent to €4.5 billion and operating margin reduced 240 basis points (bps) to 20.9 per cent. Meanwhile, the gross margin declined by 120 bps to 66.9 per cent. Richemont has reported sales of €21.4 billion (~$23.97 billion) in 2025, up 4 per cent YoY, with strong retail and direct-to-client growth offsetting Asia Pacific weakness. Operating profit fell 7 per cent to €4.47 billion, while net profit rose to €2.75 billion (~$3.08 billion). Key milestones included the YNAP sale, Vhernier acquisition, and brand expansions. The profit from continuing operations was marginally lower at €3.76 billion, down 1 per cent YoY, while losses from discontinued operations improved to €1.01 billion primarily due to a non-cash write-down of Yoox Net-A-Porter (YNAP)—an improvement from the €1.3 billion loss reported in the first half of 2025. Overall, the group recorded a profit of €2.75 billion (~$3.08 billion) for the year, up from €2.36 billion the previous year. Diluted earnings per 'A' share / 10 'B' shares stood at €4.671, an increase from €4.077 in 2024, Richemont said in a press release. Retail sales, representing 70 per cent of total group, grew by 6 per cent YoY at actual exchange rates across all regions except Asia Pacific. Meanwhile, online retail sales, which exclude sales made by YNAP, grew by 12 per cent. In total, direct-to-client sales accounted for 76 per cent of total group sales. Wholesale sales, representing 24 per cent of the total, were 3 per cent lower than the prior year with the decline in Asia Pacific being partly mitigated by growth in other regions. For the full year, most regions achieved double-digit growth at both actual and constant exchange rates, more than offsetting the decline in Asia Pacific, particularly in China. Europe grew by 10 per cent, the Americas by 16 per cent, Japan by 25 per cent, and the Middle East & Africa by 15 per cent. Segment-wise, Alaia 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 Chloe. The operating result was a €102 million loss for the year, resulting in a margin of -3.7 per cent. Within this, fashion and accessories Maisons posted a -2 per cent operating margin when excluding targeted inventory provisioning. Following a resilient first half in 2025, Richemont's sales momentum strengthened in the second half of the year, with a 10 per cent increase in Q3 and an 8 per cent rise in Q4 at actual exchange rates. Upon closing the transaction, Richemont sold YNAP to Mytheresa, which held a cash position of €555 million and no financial debt. In return, Richemont received shares representing 33 per cent of the fully diluted share capital of the newly combined entity, LuxExperience from May 1, 2025. As part of the agreement, Richemont also extended a €100 million revolving credit facility to support YNAP's corporate requirements. 'We continued to invest in future growth by further strengthening our distribution network, enhancing our manufacturing capacity, and contributing to the nurturing and preservation of unique artisan skills,' said Johann Rupert, chairman of Richemont. 'We also delivered on several strategic fronts, successfully completing the acquisition of Vhernier, and enabling Gianvito Rossi to further expand its brand globally, after having joined the Group last year. We are also pleased to have found a good home for YNAP, whose strengths Mytheresa will harness to create a new global leader in digital luxury.' 'With a renewed leadership team and governance structure, the completion of seamless management transitions across several Maisons, and our teams of talented professionals committed to creativity and innovation, we are well-positioned to guide Richemont through its next phase of development,' added Rupert. 'As I have said before, ongoing global uncertainties will continue to require strong agility and discipline.' Fibre2Fashion News Desk (SG)
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.
Fashion United
16-05-2025
- Business
- Fashion United
Richemont increases revenue: Sale of YNAP not quite as burdensome
Jewellery and watch group Richemont increased its revenue in the past financial year. While the jewellery business grew, watch sales continued to decline, the company, which owns brands such as Cartier and IWC, announced in Geneva on Friday. Excluding the online division YNAP, which it sold, revenue in the financial year to the end of March rose 4 percent to 21.4 billion euros. The operating profit margin shrank by 2.4 percentage points to 20.9 percent. Analysts had expected 21.4 percent, half a percentage point more. The burden from the sale of YNAP was lower, at one billion euros, than the 1.3 billion euros initially announced, it added. Richemont announced in early October, after a long search, that it would sell YNAP to Mytheresa. The transaction was completed at the end of April. Overall, without YNAP, there was a surplus of almost 3.8 billion euros, 1 percent less than a year earlier. With YNAP, it was 2.75 billion euros (plus 17 percent). The company clearly exceeded analysts' expectations. The shareholders are to receive a dividend of CHF 3.00 per public share (A share). In the previous year, Richemont had paid out CHF 2.75 per share. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Business of Fashion
15-05-2025
- Business
- Business of Fashion
Yoox Net-a-Porter's New Owner Reveals Plan for Profitability
Now that Richemont has offloaded the online luxury group Yoox Net-a-Porter, the e-tailers' loss-making will be Mytheresa's problem. In an investor call on Thursday, LuxExperience, the new luxury group that combines Mytheresa and Yoox Net-a-Porter, said that Net-a-Porter and Mr Porter's combined net sales dropped 11 percent to €1.2 billion ($1.3 billion) in 2024 and is on track to fall another 11 percent to €1 billion in 2025. Their off-price companions, Yoox and The Outnet, saw their combined sales decreased 19 percent to €957 million in 2024; the e-tailers' revenues are expected to decline another 14 percent to $826 million this year. That contrasts with Mytheresa's projected 7 percent growth to around €900 million in 2025. The numbers were revealed as LuxExperience announced more details of its post-merger plans to return the embattled companies to growth. Net-a-Porter and Mr Porter, as one luxury unit, and Yoox and The Outnet, as a separate off-price division, are targeting sales increases of more than 10 percent in the medium-to-long term. LuxExperience didn't disclose a target year. LuxExperience plans to drive growth for the overall group through more streamlined operations. Mytheresa, Net-a-Porter and Mr Porter, for example, will share an e-commerce platform and may use one another's warehouses in specific regions. That plan, which will take two to three years to implement, will cost as much as €250 million but will help push LuxExperience toward €4 billion in annual revenue and as much as 9 percent adjusted earnings before interests, taxes, depreciation and amortisation by 2030. Learn more: How Mytheresa Can Make Its YNAP Deal Work The German e-tailer's deal to acquire the London-based luxury site, and become a global luxury e-commerce giant, is only as viable as its ability to make the whole enterprise profitable. BoF unpacks what it could take to get there.
