Richemont Annual Sales, Profits Leap Forward

Swiss luxury goods group Richemont announced annual sales of €3.717 billion ($4.549 billion), a 10 percent rise last year, and group net profits of €881 million ($1,078 million), shooting up 33 percent over 2003/4 results of €660 million ($807.64 million).

The good results follow strong sales in the second half of the year, continuing the trend of revived sales during the first half. Operating profit from Richemont’s luxury goods businesses was 71 percent above the prior year at € 505 million ($618 million).

Higher sales resulted in a significantly higher gross margin, while operating expenses were kept under control, growing by only 5 percent.

The ‘Jewellery Maisons’, Cartier and Van Cleef & Arpels, saw their combined turnover increasing by 8 percent to €1,956 million. Cartier has performed strongly in all markets with double-digit growth in underlying sales in all regions, with the exception of Japan.

New watch models such as the Santos 100, launched in 2004, and jewelry ranges such as the Panthere have all contributed significantly to the strong performance.

This was an excellent year for Richemont’s watchmakers. The majority were able to post double digit increases in sales and demand was strong in all regions. Particularly strong growth was seen in the Asia-Pacific region and in the Americas.

Notably, IWC has benefited from its roll-out into new markets, linked to the introduction of new models such as the Aquatimer. Jaeger-LeCoultre too has continued its global roll-out and is benefiting from the increased awareness of its character as a true ‘Manufacture’ in terms of high watchmaking skills, the company said.

Jewellery Maisons’ sales increased 8 percent to €1,956 million ($2,393.56 million) and the Specialist watchmakers increased sales 13 percent to €885 million ($1,083 million).