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 solid 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 linked to the Covid-19 pandemic, sales contracted by 25% at constant exchange rates and 26% at real exchange rates in the first half of 2021. As initial containment measures began to ease, sales increased 17% and 12% at constant and real exchange rates, respectively, in the second half of the year 2021 compared to the same period in 2020.
Sales growth in the fourth quarter was 36% and 30% at constant and real exchange rates, respectively, containing a decrease in full-year sales of 5% at constant exchange rates and 8% at actual exchange rates.
The online retail sales of the Group’s Houses experienced triple-digit growth, testifying to the success of the Houses’ digital transformation. Globally, online retail sales increased by 6% at actual exchange rates, representing 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.
The Jewelry Houses increased their 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 sales growth of 19% in Asia Pacific, where year-over-year sales increased triple digits in the fourth quarter.
The group believes that it has made solid progress in its main areas of intervention, in line with the United Nations 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 there are still worrying developments of Covid-19 in parts of the world that could slow a global recovery, even as underlying demand looks strong with backing actions from the central bank, plans to substantial government stimulus and all-time high real estate and stock markets. The Group will continue to take decisive steps to transform the business with a focus on digital initiatives, customer orientation and the creation of strategic partnerships.