INTERNATIONAL. Asian demand helped boost Richemont’s sales by +15% year-on-year (+17% in constant currencies) during the April to August five-month period.
The world’s second-biggest luxury goods group forecast stronger profits for the year. And it named a new CEO. Current Montblanc Chief Executive Norbert Platt replaces group Chairman Johann Rupert who has held the job in a caretaker capacity since October.
Richemont, which owns a glittering luxury portfolio including Cartier watches and jewellery; Jaeger Lecoultre, Piaget and Baume & Mercier watches; Hackett, Dunhill, Lancel and Chloe fashion and Montblanc pens, headed earlier city estimates. The company also has a 20% stake in British American Tobacco (BAT).
Rupert told shareholders at the annual general meeting in Geneva that full-year predictions were difficult to make but said profits would be “significantly better” in the first-half of its April to March financial year.
“The uplift that we have seen in the first few months of the year, particularly compared to the first quarter of last year, will result in significantly improved profitability for the group in the first half of the year,” Rupert said.
Analysts had expected sales growth of around +12.5% after a decline of -7% in the comparative period a year earlier, the latter due to the impact of war in Iraq and SARS virus. Asia posted growth of +34% year-on-year. In Japan, sales growth reached +4%.
Sales in Europe were up +12% in the period, while those in the US sales rose +13%.
The luxury watches line-up of Jaeger Lecoultre, Piaget and Baume & Mercier, which accounts for half of revenues, posted April and May sales hikes of +23% and 21%, respectively, the company said.
Sales of the group’s key jewellery brands – Cartier and Van Cleef & Arpels – grew by +12% during the five-month period. Richemont’s writing instrument manufacturers – Montblanc and Montegrappa – saw an increase in sales of +18%.
Rupert told reporters that a restructuring of Dunhill and Lancel (the latter’s flagship store in Paris is closed for refurbishment) was work in progress. Richemont will boost its leathergoods offer through Cartier, Dunhill and Lancel.
MORE STORIES ON RICHEMONT
Merrick takes Asia Pacific travel retail post for Richemont – 07/09/04
Franco Cologni to retire from full-time role at Richemont in November – 09/07/2004
Richemont quarterly sales hit by exchange rate turbulence – 20/01/04
