Luxury goods company Richemont has disclosed a marginal 1% decrease in sales to €10.07bn ($10.80bn) for the first half of fiscal 2024, compared to €10.22bn during the same period last year.
The company’s financial performance highlights its sustained resilience despite a challenging global environment.
Go deeper with GlobalData
Richemont experienced robust sales growth over the period across all regions except for Asia Pacific.
In Europe and the Americas, sales surged by 4% and 10% at actual exchange rates respectively, buoyed by strong local demand and increased tourist expenditure in Europe.
However, Asia Pacific sales witnessed a significant contraction of 19%.
Gross profit for the six months ending 30 September declined by 3%, in absolute terms, to €6.77bn, representing 67.2% of sales.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRichemont’s operating profit from continuing operations fell 17%, or 12% at constant exchange rates, leading to an operating margin of 21.9%.
The company’s profit from continuing operations was reported at €1.72bn in H1 FY 2024, a 20% reduction from the previous year’s €2.16bn in the first half.
Overall, the company’s profit for the period was €457m compared to €1.50bn in the prior-year period.
Richemont chairman Johann Rupert said: “In the first half of this fiscal year, we continued to deliver sustained resilience in a world where uncertainty has become the norm.
“We saw solid sales growth across most of our regions offsetting continued weakness in Chinese demand, which, as I had predicted, will take longer to recover and is particularly affecting our specialist watchmakers.”
On 12 September 2024, Richemont finalised the previously announced acquisition of Vhernier, with a net cash consideration of €94m.
The integration of Vhernier into Richemont’s Jewellery Maisons business unit from 30 September led to an initial recognition of €28m in provisional goodwill and €81m in intangible assets.
The company also noted Mytheresa has signed an agreement under which it will acquire YNAP. In return, Mytheresa will issue a 33% equity stake in its company.
The transaction is contingent upon the fulfilment of standard closing conditions.
