The Jewelry and Watch Group Richemont Concludes the Fiscal Year 2023/24 Ending in March with an Increase in Sales. While the Jewelry Division Shone with Its Flagship Brand Cartier, the Watch Houses Were Recently Affected by the Weakening Market Environment. Consumer Sentiment in China, in Particular, Remains Subdued.

Revenue of the Richemont Group, which includes brands such as Cartier, Piaget, and IWC, increased by 3 percent to 20.6 billion euros without the online division YNAP, as the conglomerate announced on Friday. Adjusted for currency fluctuations, sales would have increased by 8 percent. The growth momentum slowed towards the end of the fiscal year, with revenues declining slightly in the final quarter. Previously, in the reporting currency of euros, sales had grown by 5 percent in the first nine months and by 11 percent in local currencies.

The operating profit in the ongoing business, excluding the online subsidiary YNAP that is up for sale, fell by 5 percent to 4.79 billion euros. The corresponding margin shrank by 1.9 percentage points to 23.3 percent, mainly due to unfavorable currency effects.

Below the line, including YNAP, a profit of 2.36 billion euros remained, compared to 301 million the previous year. At that time, high write-downs had weighed on the online business. Shareholders are proposed to pay a dividend of 2.75 Swiss francs per A-listed share. Most recently, 3.50 Swiss francs were paid, including a special dividend of one franc.

What the future looks like for YNAP after the failed sale to British online retailer Farfetch is still unclear. Discussions with potential buyers are currently underway, it was said. A decision on YNAP is expected by the end of the year. In the fiscal year 2023/24, YNAP recorded a loss of 1.5 billion euros.

In the past year, particularly the business with jewelry from the brands Cartier, Van Cleef & Arpels, and Buccellati performed well. Sales climbed by 12 percent to a sales volume of 14.2 billion euros, calculated in local currencies. The division maintained the operating margin at a high level of 33.1 percent (-1.8 points).

The watch division with brands such as IWC, Piaget, and Jaeger-LeCoultre grew by only 2 percent in local currencies, while revenue in euros fell by 3 percent to 3.77 billion euros. The margin plummeted by 3.8 percentage points to 15.2 percent. However, it was reported that the watch business performed well in the brand-owned shops.

Viewed by region, Richemont saw strong growth in Japan (+20 percent in local currencies) and Asia-Pacific (+10 percent). There, business had recovered following the lifting of the last Corona restrictions. In America (+5 percent) and Europe (+3 percent), growth rates were at a lower level.

"In view of the recently subdued demand in China, Chairman of the Board of Directors Johann Rupert stated that it will take time for consumer confidence to return."

A Change at the Top of the Group Leadership. The Role of CEO will be taken over by the current head of Van Cleef & Arpels, Nicolas Bos. He succeeds Jérôme Lambert, who will take on the role of Chief Operating Officer in the future.

Additionally, Richemont bought a 70 percent controlling majority in the luxury shoe manufacturer Gianvito Rossi. Already at the beginning of May, the group had announced the acquisition of the Italian jewelry manufacturer Vhernier.

At the SIX, Richemont's share price temporarily rises by 6.26 percent to 146.05 Swiss Francs on Friday.