Richemont Earnings: Five Key Takeaways

Chloe-wedge-shoe
Suede gladiator wedge sandal by Chloé.
Neiman Marcus.

A weaker euro and double-digit growth in Europe and Japan led to a 16 percent rise in sales at Richemont during the five months ending Aug. 31, 2015, the company said.

Removing the impact of currency, sales grew 4 percent at the firm that made headlines in March when it merged its Net-A-Porter Group with Yoox Spa to create an online luxury powerhouse.

The earnings figures, released Wednesday, exclude Net-A-Porter’s sales since that transaction is expected to be completed in October.

Richemont’s other brands include Chloé, Montblanc and Alfred Dunhill.

Read on for five key takeaways from the earnings report.

1) Sales performance was mixed, the company said, with double-digit increases in Europe — up 26 percent year-over-year at constant currency — and Japan — up 48 percent year-over-year at constant currency — offsetting decreases in Asia Pacific and soft demand in the Americas and the Middle East.

2) European sales benefitted from strong tourist numbers, helped by the euro’s weakness against the U.S. dollar and other currencies.

3) The company’s performance in Japan was also helped by local and tourist demand, bolstered by a weaker Yen.

4) In the Asia Pacific region, sales in Hong Kong and Macau were significantly lower while sales in Mainland China grew at a double-digit rate, “overcoming lower wholesale demand,” Richemont said in a release.

5) The company said “retail was strong overall, with many Maisons reporting double-digit growth supported by strong jewelry, high jewelry, and leather sales.” The firm noted particular strength at Cartier and Van Cleef & Arpels “in a volatile environment.”