Richemont Upbeat for New Fiscal Year as China Reopening Spurs 4Q Sales
12 May 2023 - 4:21PM
Dow Jones News
By Joshua Kirby
Compagnie Financiere Richemont said Friday that it expects
further strong demand ahead, after booking rising sales and
profitability for fiscal 2023.
The Swiss luxury group booked sales of 19.95 billion euros
($21.78 billion) in the year to March 31, 14% higher at constant
currency than the year before. Analysts had expected sales of
EUR19.56 billion, according to a poll of analysts' forecasts
compiled by FactSet.
Sales in Asia-Pacific were boosted in the last three months of
the year by the removal of health and travel restrictions in
mainland China, Richemont said. For the year, operating profit came
to EUR5.03 billion, beating expectations for EUR4.81 billion, and
with a margin that climbed nearly three points to 25.2%, Richemont
said.
Net profit from continuing operations rose to EUR3.91 billion,
though the group booked a loss of EUR3.4 billion from its
write-down of eCommerce business YNAP, following a deal to divest a
majority stake in the platform.
The core jewelry division, home to heavyweight maisons Cartier
and Van Cleef & Arpels, booked a 16% increase in sales to
EUR13.4 billion for the year and a margin of 34.9%, the company
said.
Looking ahead, the group's brands are "well-positioned to meet
strong demand, notably driven by a significant resumption of
Chinese travel," Chairman Johann Rupert said, though he noted that
economic volatility and political uncertainty are likely to remain
present in the trading environment.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
May 12, 2023 02:06 ET (06:06 GMT)
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