Richemont announces strong financial year 2021

Switzerland

Posted: May 24, 2021

The Swiss luxury group, which owns brands such as Cartier, IWC, Piaget and Jaeger-LeCoultre, announced its results for the year ended March 31, 2021, with a strong performance led by the Jewelry Houses, sales in line and Asia-Pacific.

Due to the closures of outlets, logistics centers and manufacturing sites, as well as the shutdown of international tourism resulting from the Covid-19 pandemic, sales contracted by 25% at constant exchange rates and by 26% at real exchange rates in the first half of 2021. As the initial foreclosures began to ease, sales increased by 17% and 12% at constant and real exchange rates, respectively, in the second half of 2021 compared to the same period in 2020.

Fourth quarter sales growth was 36% and 30% at constant and real exchange rates, respectively, containing the decrease in full-year sales of 5% at constant exchange rates and 8% at constant exchange rates. actual changes.

Online retail sales of the Group’s Houses experienced triple-digit growth, underlining the success of the Maisons’ digital transformation. Overall, online retail sales grew 6% at actual exchange rates, accounting for 21% of Group sales. Digital has also enabled more diverse customer journeys and increased direct engagement with end customers, now accounting for around three quarters of sales.

Jewelry houses increased sales beyond pre-Covid levels and increased their operating margin to 31%, supported by strong double-digit sales growth in the second half of 2021.

Strong performance in mainland China contributed to 19% sales growth in Asia Pacific, where year-over-year sales increased triple digits in the fourth quarter.

The group believes it has made good progress in its main areas of intervention, in line with the UN Sustainable Development Goals. It is working to finalize a formal commitment to science goals in accordance with the Paris Agreement. There are many other initiatives, completed or underway, which the group will provide details of in its 2021 sustainability report in July 2021.

Outlook

The group says developments regarding Covid-19 in parts of the world could still slow a global recovery, even as underlying demand looks strong with supporting actions from the central bank, significant government stimulus packages and real estate and stock markets. -the time of highs. The Group will continue to take decisive steps to transform its business by focusing on digital initiatives, customer orientation and the establishment of strategic partnerships.




Credit: Cartier




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