May 19, 2011 | by Richemont
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May 19, 2011, We are pleased to report that Richemont has met the challenging environment of the past year by achieving strong sales growth across all segments and all geographic regions. The year under review has seen record sales and profits for our Jewellery Maisons and specialist watchmakers, despite the stronger Swiss franc. Profitability at Montblanc improved with progress also being seen in the performance of the Fashion and Accessories Maisons. NET-A-PORTER.COM, which was acquired in April 2010, is performing ahead of its business plan.
As a consequence of these positive developments, the Group’s operating profit has increased by 63 %, double the rate of growth in sales. This performance reflects the strength of our Maisons, the Group’s operating leverage and most importantly, the commitment and enthusiasm of all our colleagues in the Maisons, regional platforms and support services.
These very satisfactory results have generated a record level of operating cash flow; as a consequence the Group’s balance sheet is stronger than ever.
Outlook
Sales in the month of April were 32 % above the comparative period, or 35 % at constant exchange rates. In an environment currently marked by geopolitical unrest and currency instability, we hope that this positive trend will be confirmed in the coming months. The performance achieved in the year under review, following a major global economic crisis, confirms the appeal of each of the Maisons. We will continue to invest in their organic growth through higher levels of capital spending in manufacturing capacity and in the further development of the Group’s own retail network, particularly in growth markets. Our capital investments are therefore likely to range between 6 % and 8 % of sales in the next two years.
We intend to take advantage of the many opportunities to further develop our existing Maisons. We are more than ever encouraged by their growth potential and we believe it to be the best route for creating shareholder value.
Contact
Richemont Europe 50, chemin de la Chênaie 1293 Bellevue, Geneva, Switzerland
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Conclusion of this article: « Richemont: the Swiss luxury goods group, announces its audited consolidated results for the year ended 31 March 2011 »
Source: Richemont, Press release