Richemont, the Swiss luxury goods group behind brands including Dunhill, Chloe and etailer Net-a-Porter, has reported double digit sales growth in its fashion and accessories division.
The group, which acquired Net-a-Porter in June, said that the fashion and accessories division returned to profit in the six months to September 30, notching up a €7m (£5.9m) profit compared with a €9m (£7.7m) loss in the same period a year ago.
Overall retail sales, which include the group’s 855 company-owned stores around the world and Net-a-Porter, increased by 47% to €1.5bn (£1.3bn) at actual exchange rates. The figure is ahead of growth in the wholesale division which increased sales by 29% to €1.7bn (£1.5bn) after the number of wholesale accounts was reduced particularly in America.
Sales in Europe jumped 27% to €1.3bn (£1.1bn) and represented 38% of total sales. Excluding Net-a-Porter, retail sales increased by 24%.
Total group sales increased by 37% to €3.3bn (£2.8bn) or by 27% at constant exchange rates. Excluding the impact of the acquisition of Net-a-Porter, sales increased by 22% at constant exchange rates.
Operating profit increased by 95% to €760m (£648.9m).
Chairman and chief executive Johann Rupert said: “The robust sales momentum that the group has seen for several months has continued through to the end of October.”
He added that he expected the high rate of growth to slow as a result of exchange rate movements and more challenging comparatives.