Directly operated stores outperformed other distribution channels in FY23, contributing to 68 per cent of the group’s sales, while online sales combined with store sales accounted for nearly 75 per cent of the total sales. Growth in the Asia Pacific region picked up, with sales increasing by 6 per cent at actual rates (up 1 per cent at constant exchange rates). Other regions, led by Japan and Europe, experienced double-digit growth at both actual and constant exchange rates, the company said in a media release.
Richemont’s FY23 sales hit a record €20 billion, up 19 per cent YoY, driven by Asia Pacific growth. Operating profit surged 34 per cent to €5 billion, with a 25.2 per cent margin.
Directly operated stores and online sales dominated, while the other segment returned to profit.
Overall profit was limited to €301 million due to discontinued operations.
Richemont’s other business area, comprising mostly of fashion and accessories maisons, reported sales of €2.7 billion in FY23, up 19 per cent compared to the previous year. The segment returned to profit, with the fashion and accessories maisons contributing €94 million in operating profit.
The group’s operating profit in FY23 reached a record €5 billion, and the operating margin expanded to 25.2 per cent of sales. This substantial 34 per cent growth in operating profit, coupled with well-managed working capital, resulted in a strong €4.5 billion cash flow from operating activities. Profit for the year from continuing operations increased by 60 per cent to €3.9 billion. However, the overall profit for the year was limited to €301 million due to the €3.6 billion loss for the year from discontinued operations.
Fibre2Fashion News Desk (DP)