RICHEMONT reported a strong first quarter of its 2022 financial year with 129 percent sales growth in the three months to end June boosted by the performance of jewellery maisons and the specialist watchmakers.
The group said almost all its operational regions reported triple-digit growth in sales during the quarter. Jewellery maisons and specialist watchmakers were the best performers after reporting sales growth of 142 percent and 143 percent respectively.
The group’s 2020 first quarter was severely affected by the Covid-19 pandemic, which led to a triple-digit growth in sales during the current quarter, with the exception of Asia Pacific, online distributors and online retail, where sales grew by double-digits.
“The other business area, mostly composed of our fashion and accessories Maisons, also performed strongly, recording 124 percent sales growth,” the group said.
Richemont’s directors said that the Americas generated the strongest regional performance, with sales increasing by 276 percent, driven by strong local demand, followed by the Middle East and Africa with sales up by 154 percent.
The wholesale and retail led channel reported sales growth of 178 percent and 138 percent, respectively.
The sales growth in the first quarter also exceeded that of pre-Covid-19 levels and was up by 22 percent compared to the first quarter to end June 2019.
“In the period under review, sales exceeded pre-Covid-19 levels. Sales growth of 22 percent was driven by strong double-digit increases in the Americas, Asia Pacific and the Middle East and Africa,” the group said.
The online retail sales rose by 29 percent, with sustained demand across regions.
Net cash at the end of the quarter was €3.6 billion (about R61.2bn), up from €1.8bn compared with last year.
Richemont’s nominations committee and its board had also undertaken a review of the group’s governance model in light of the ongoing pandemic and the continued acceleration of “new retail”.
Some members of the senior executive committee – such as Cyrille Vigneron, Nicolas Bos, Philippe Fortunato, Emmanuel Perrin and Frank Vivier – would step down from the senior executive committee and would not seek re-election to the board in the annual general meeting to be held on September 8.
Johann Rupert, group chief executive Jérôme Lambert and Burkhart Grund, chief finance officer, will remain on the senior executive committee and stand for re-election to the board at the AGM.
Rupert said: “The continual evolution of their corporate governance structures reflects their commitment to meeting the changing demands of their operating environment …
“The enlarged senior executive committee structure proved effective in the early stages of our transformation journey and in navigating one of the most trying times in recent history.”