News 
In the first six months of the financial year ended 30 September 2024, Richemont demonstrated sustained resilience, against a challenging macroeconomic and geopolitical backdrop, supported by ongoing investment in the distribution and manufacturing capacities.
Benefitting from the Group’s balanced geographic mix and continued strength at the Jewellery Maisons, sales from continuing operations were stable at constant exchange rates (-1% at actual exchange rates) at € 10.1 billion. Operating profit from continuing operations came in at € 2.2 billion, down 12% at constant exchange rates (-17% at actual exchange rates), largely reflecting the impact of the decline in sales at the Specialist Watchmakers, a slight gross margin erosion and ongoing investments for the Maisons’ long-term growth.
The Group recorded very solid sales progress in most regions, led by the Americas and Japan in value, which grew 10% and 32% respectively at actual exchange rates. Both Europe and Middle East & Africa also posted robust growth. The Group’s balanced regional mix, building on several growth engines, contributed to offsetting the 19% decrease in Asia Pacific sales, led by China. Direct to client sales rose further, now representing 76% of Group sales.
With 2% sales growth overall (+4% at constant exchange rates), the Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, continued to show strength and gain share. Limited price increases over recent months were not sufficient to fully offset raw material cost increases, notably that of gold. The Jewellery Maisons nonetheless delivered a € 2.3 billion operating result and a corresponding 32.9% operating margin.
Looking back at the first half of the fiscal year, the Specialist Watchmakers Maisons were affected in different ways, influenced by their regional exposure and product mix. Largely reflecting their significant exposure to the Asia Pacific region, the Specialist Watchmakers recorded a 17% year-on-year sales decline (-16% at constant exchange rates) to € 1.7 billion. As a consequence of lower sales on fixed operating costs and a strong Swiss franc, operating result amounted to € 160 million, corresponding to a 9.7% operating margin.
Sales in the Other business area increased by 4% at both actual and constant exchange rates. Sales by the Fashion & Accessories Maisons were 2% higher than the prior-year period, driven by Alaïa’s and Peter Millar’s continued outperformance. Overall, the Other business area recorded a € 52 million operating loss, € 23 million of which for the Fashion & Accessories Maisons.
At Group level, operating profit from continuing operations was also significantly impacted by negative foreign exchange movements, but still delivered a 21.9% operating margin. Profit for the period from continuing operations decreased to € 1.7 billion. The € 1.3 billion loss from discontinued operations reflected the combined result of Yoox Net-A-Porter (YNAP) for the six-month period and the € 1.2 billion non-cash write-down on the revaluation of YNAP’s net assets, classified as “held for sale”, to its fair value, following the agreement signed with Mytheresa in October. Importantly, amidst ongoing macro uncertainty, the net cash position remained solid at € 6.1 billion on 30 September 2024. This excludes YNAP’s net cash position of € 0.1 billion, presented as assets and liabilities of disposal group held for sale.
November 21, 2024