Richemont H1 sales up 4 percent

REPORT_ For the six months ended September 30, 2013, Richemont sales grew by 4 percent.

Operating profit decreased by 1 percent. Operating margin declined by 130 basis points to 25.7 percent. Profit for the period rose by 10 percent. Gross profit rose by 3 percent. The gross margin percentage was 90 basis points lower at 63.9 percent of sales. This decrease can be mainly attributed to unfavorable currency movements, which accounted for 80 basis points of the overall decline.

Europe accounted for 38 percent of overall sales. Sales in the Asia Pacific region accounted for 40 percent of the group total, with Hong Kong and mainland China the two largest markets. Asia Pacific was led by good growth in Hong Kong and Macau. Sales growth in the Americas was strong. Sales growth in Japan was robust.

The group’s wholesale business, including sales to franchise partners, reported satisfactory growth. Retail sales, comprising directly operated boutiques and Net-a-Porter, increased by 5 percent. Retail sales growth continues to outperform wholesale sales-- 52 percent of group sales were generated through its own retail network, which increased to 1043 boutiques at the end of September.

“Richemont can report a satisfactory set of results for the first half of this year,” said Yves-André Istel, chairman, Richemont. “Good cost control helped mitigate the overall negative impact of foreign exchange effects. Cash flow from operations was substantially above the prior period. Richemont’s financial position continues to be strong.”