(IDEX Online News) – Richemont, the world's second-largest luxury goods group, posted a 14-percent jump in sales to $13 billion (€10.2 billion) for the fiscal year that ended on March 31 boosted by strong sales of jewelry and high-end watches. Sales rose by 9 percent on a constant currency basis.

 

Profit for the year soared by 30 percent to $2.6 billion (€2.0 billion) as the company reported solid growth across all segments, regions and channels.

 

"The Jewellery Maisons and the Specialist Watchmakers reported remarkable growth in sales and profits, despite the continuing strength of the Swiss franc and the historically high cost of precious metals and stones," the company said in a statement.

 

"The Jewellery Maisons’ sales grew by 13 percent. Both Cartier and Van Cleef & Arpels generated remarkable results. The Maisons’ boutique networks reported good growth and also benefitted from further openings. Demand for jewellery was particularly strong; demand for Cartier’s watch collections was solid, tempered by lower wholesale orders for steel watches. The significant increase in sales and positive gross margin development generated an operating margin of 35 percent."

 

Meanwhile, its specialist watchmakers’ sales increased by 18 percent, reflecting growing worldwide interest in top-end watches. "Most Specialist Watchmakers contributed to the significant increase in the contribution margin, reflecting the Maisons’ pricing power and operating leverage."

 

In sales by region, Europe accounted for 36 percent of overall sales, and saw good growth largely due to demand from tourists. "Accordingly, the highest growth rates were in the Maisons’ own boutiques in tourist destinations, including the Middle East.

 

Sales in the Asia Pacific region accounted for 41 percent of the group total, with Hong Kong and Mainland China the two largest markets. The rate of growth slowed following two years of "exceptionally high rates of growth. The lower rate was more pronounced in the second six months of the year under review. Nevertheless, sales growth in our Maisons’ own boutiques was higher than sales growth to wholesale partners, reflecting the expansion of the boutique network during the last two years."

 

Meanwhile, the Americas accounted for 15 percent of sales, and posted a third successive year of double-digit growth, while sales in Japan continued to grow, reflecting demand in all segments.

 

The company announced that Chairman Johann Rupert is taking a one-year leave of absence, without providing further details.