Richemont Group’s annual results exceed expectations

Richemont has just published its results for the 2022/2023 financial year and the figures are very positive for the Swiss luxury giant: overall sales amount to 19.95 billion euros and net profit to 301 million euros. These record annual sales thus show a growth of +19% at current exchange rates compared to last year.

The factors behind these improved results are the gradual recovery of the Chinese market, which is emerging from the constraints of the health crisis, and the strong growth of the European market, which recorded a +30% increase in turnover at current exchange rates to 4.37 billion euros. While local demand was strong, the return of international tourism also played a major role. Japan recorded the strongest increase at +45% to 1.616 billion euros, representing 8% of all sales.

However, net profit was down, impacted by an accounting effect linked to the sale of Yoox Net-a-Porter (YNAP), an online sales platform for luxury goods acquired by the Richemont group in 2015, which never reached expectations.

Johann Rupert, chairman of Richemont and South African billionaire, was cautious in his statements. He said that "economic volatility and political uncertainty are expected to continue to affect the business environment". At the same time, he stressed that China's role will determine future economic performance, expressing confidence in "a significant recovery in Chinese travellers."

All business sectors recorded double-digit increases in sales compared to the previous year. Jewellery brands Cartier, Van Cleef & Arpels and Buccellati increased their combined sales to €13.4 billion. Their operating profit amounted to 4.7 billion euros, with an improved operating margin of 34.9% compared to the previous year. Johann Rupert emphasised in his statement that "Buccellati continues to develop its activities with the highest growth rate in the Group."

The watch division, including Jaeger-LeCoultre, Panerai and Piaget, also performed very well, with sales reaching 3.9 billion euros. Buoyantly, Richemont announced the recruitment of 500 people and the opening of two new workshops in France, dedicated to Van Cleef & Arpels creations.