Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Richemont hit by poor wholesale performance

Swiss luxury goods group Richemont saw its group sales fall 4% to 5.2bn (£4.4bn) in the year to March 31, dragged down by a poor wholesale performance.

Richemont’s group retail sales for the period were up 4% to 2.4bn (£2bn), while its wholesale revenues dropped 10% to 2.8bn (£2.4bn), partly as a result of a shift in focus to retail and the continued closure of wholesale accounts.

The group’s profits for the year fell 7% to 3.2bn (£2.7bn).

Richemont said sales in its fashion and accessories division were stronger than its watches or pens divisions. Luxury fashion brands Alfred Dunhill and Lancel broke even, while Chloé remained profitable.

Richemont said that the performance of these brands was boosted by strong retail sales as well as by the accessible price points of accessories, which had helped them remain popular throughout the recession.

Richemont’s other fashion and accessories businesses include Shanghai Tang, Maison Alaïa and Purdey.

The Richemont group as a whole performed poorly in Europe, where sales declined 11% to 2.1bn (£1.8bn) over the year as a result of a difficult first half of the year. European sales in the second half were up 1%.

Richemont chairman and chief executive Johann Rupert said: “We are ready to capitalise on growth opportunities in new markets and to meet demand in established markets once the economic situation improves.”

The results do not include the performance of luxury etailer Net-a-Porter, which Richemont acquired last month, after its financial year end.


Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.