The group of companies Richemont, specializing in luxury goods, announced sales growth of 5% on a year-on-year basis to $ 14.6 billion (EUR 10.649 billion) for the fiscal year ended March 31, Rapaport reports. The profit of Richemont increased by 3% to $ 2.8 billion (EUR 2.067 billion), including $ 292 million (EUR 214 million), received from the hedging of exchange rates.
The group confirmed that sales growth reflected the expansion of the retail network of companies, as well as improved local demand in Europe, North America and Japan and the preservation of the tourist flow throughout the world.
Richemont noted the high demand for products of the jewelry division and watch brands, which helped offset the decline in the growth rates of sales of some fashion houses and the Montblanc brand.
Retail sales showed an increase of 8% to $ 8 billion (EUR 5.894 billion), and excluding currency fluctuations, this growth was 14%. Revenue from wholesale sales increased by 2% to $ 6.6 billion (EUR 4.8 billion), and excluding currency fluctuations, growth was 6%.
Sales of jewelry in the jewelry houses of the Richemont, including Cartier and Van Cleef & Arpels, rose 4% to $ 6.1 billion (EUR 5.438 billion) for the fiscal year. Richemont explains that growth in this segment was achieved through the opening of new stores and high demand for jewelry, while the demand for watch collections Cartier was quite modest.