Richemont acquires majority stake in Gianvito Rossi amid stable financial performance
Richemont has recently made an addition to its portfolio, acquiring a controlling stake in the high-end Italian shoemaker, Gianvito Rossi. This strategic partnership was announced on Friday 28th of July, after the group’s stable financial performance in Q1 2024 ended 30 June 2023.
By Fanny Tang31 juillet 2023
In its report on 17 July 2023, the Richemont Group posted robust performance starting the new fiscal year. The group recorded a 14% growth in sales at actual exchange rates (+19% at constant exchange rates) to reach 5.322 billion euros for the first quarter.
Founded in 2006 in San Mauro Pascoli, Italy, Gianvito Rossi has earned a reputation for its premium craftsmanship and elegance, aligning well with Richemont's portfolio of Maisons. Philippe Fortunato, CEO of Fashion & Accessories Maisons in Richemont, praised Rossi's dedication to quality and Italian craftsmanship, “Gianvito Rossi is an exceptional Maison with unique savoir-faire in the world of shoemaking. Its core attributes of uncompromising quality, elegance, and timelessness are perfectly aligned with Richemont’s values.” citing this acquisition as a move that will strengthen Richemont's presence in the luxury market. Gianvito Rossi also expressed enthusiasm for the partnership, seeing it as an opportunity to expand his brand's international footprint while maintaining its artisanal ethics “I have found in Richemont a partner who shares common values... I decided to choose them to keep developing the brand worldwide and for their expertise and model of global expansion.”
The acquisition comes amid steady financial performance for Richemont. The group reported higher sales across almost all regions and distribution channels and all business areas. This growth was mainly driven by the rebound in Asia Pacific (40%), the strongest regional performance, with substantial sales increase in Europe (+11%), Japan (+14%), and Middle East & Africa (+15%). The is a 2% sales contraction in the Americas due to lower wholesale and retail sales.
Meanwhile, the Jewelry Maisons and Specialist Watchmakers segments also showed significant growth. The former posted the strongest sales increase at 24%, while the latter grew by 10%.
However, despite these positive numbers, Richemont faces stiff competition in the luxury goods sector. LVMH saw a 15% surge in revenue in the first half of the year 2023, while Kering reported completing its portfolio with 30% of Valentino’s capital along with receiving investment from Bluebell Capital. With these robust figures from its competitors, Richemont's acquisition of Gianvito Rossi could be viewed as a strategic move to enhance its brand portfolio and secure its market position.
The giants, LVMH, Kering, and Richemont, take their positions on the luxury industry board, reflecting the dynamism and resilience of the luxury sector, despite ongoing global economic uncertainties. Richemont's acquisition of Gianvito Rossi is not just a strategic addition to its Maisons but also an affirmation of its commitment to championing craftsmanship and elegance in the luxury market. Financial terms of the deal were not disclosed, and the transaction is expected to have no material financial impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2024.
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