The Richemont Group has published its latest full-year financial report, recording a 21 per cent increase in jewelery sales off the back of easing pandemic restrictions in Asia.
Sales from the jewelery category reached €13.43 billion ($AU21.79 billion) for the 12 months ending 31 March.
The division’s directly operated store network, as well as online sales, combined for 83 percent of sales. Operating profit increased by 23 percent.
Based in Switzerland, Richemont owns luxury brands such as Baume & Mercier, Buccellati, Cartier, Montblanc, Vacheron Constantin, and Van Cleef & Arpels.
The company’s total sales improved by 14 per cent, with the specialist watchmakers division improving by eight per cent.
In a statement, representatives at Richemont attributed the increased sales to the improved trading conditions in China, as well as positive performances in Japan, Europe and the US.
“The group’s three jewelery houses [brands] achieved double-digit improvement in jewelery and watch [sales]the company said.
“All iconic collections outperformed. This strong performance was also broad-based across all jewelery houses, price points, regions and distribution channels.”
The statement continued: “Economic volatility and political uncertainty look set to remain features of the trading environment. The group will therefore seek to maintain the necessary agility to manage fluctuating levels of demand.”
Chairman declares takeover rumors are unfounded
In February rumors spread in Europe that Louis Vuitton Moët Hennessy (LVMH) was considering a takeover of Richemont.
Richemont chairman Johann Rupert dismissed the possibility of a sale during the results briefing for the 2022-23 financial year.
“Rumours have been circulating since the start of the year that LVMH, the world’s largest luxury goods conglomerate, is lining up a take-over bid for Richemont,” writes Rob Corder of WatchPro.
“In a conference call with journalists and analysts, he [Rupert] was insistent that Richemont is not for sale, and called the rumor of a sale to LVMH ‘erroneous’.”
Rupert also confirmed that discussions of a merger with Kering had dissipated more than two years ago.
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