Richemont Sales Increase, CEO Cautious

Swiss luxury goods group Richemont announced its total sales for the five months ended Aug. 31 were up 29 percent.

However, Johann Rupert, the group’s executive chairman and chief executive officer, remained cautious, stating the difficulties from fiscal deficits worldwide, and in particular those of the Euro zone, might play havoc on the company’s financial future.

“To hope for a continuation of the current good trading levels in such circumstances may be over-optimistic,” Rupert said in a statement. “In addition, we must keep in mind the demanding comparative figures against which sales in the coming six months will be measured.”

The company, which owns a number of jewelry firms, including Cartier and Van Cleef & Arpels, attributes its increased retail sales to a good performance by the maisons boutiques, the expansion of their retail networks, particularly in the Asia-Pacific region, and strong growth at NET-A-PORTER. Richemont’s net cash position is $3.6 billion.

Highlights of Richemont’s financial statement (five months ended Aug. 31):

  • Total sales: up 29 percent
  • Total retail sales: up 37 percent
  • Total wholesale sales: up 22 percent
  • Total jewelry maisons (houses) sales: up 34 percent
  • Total sales from specialist watchmakers: up 29 percent

View Richemont’s full financial statement.

The company also announced that Josua Malherbe was appointed chairman of the board’s audit committee, replacing Yves-André Istel.