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.
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.
Richemont'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.
