Richemont Upbeat for New Fiscal Year as China Reopening Spurs 4Q Sales

   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 [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

May 12, 2023 02:06 ET (06:06 GMT)

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