Richemont is cutting energy costs by 10% at its offices and boutiques in Europe over the next six months and aims to source 100% renewable electricity ahead of its target for the end of calendar year 2025.
This is according to the luxury goods group’s chairman, Johann Rupert, who said at the release of their results for the six months to September 30, that the group had engaged with several NGOs in the interim period to assess progress on the group’s revised human rights strategy and biodiversity, climate and circularity policies.
With climate change, companies are faced with a barrage of tightening environmental, institutional and investment policies aimed at addressing sustainability on the planet.
“We are currently rolling out a strengthened sustainability roadmap to drive further environmental and social progress within Richemont and its stakeholder community, including suppliers and partners,” Rupert said.
Richemont owns Maisons, globally recognised for their luxury jewellery, watches, fashion and accessory brands such as Cartier, Van Cleef & Arpels, Panerai, Dunhill and Purdey.
Richemont, despite the uncertain and weakening global economy, said sales climbed 24% in the six months, with double-digit increases at actual exchange rates across all business areas and channels, except Asia Pacific where, despite increased momentum, sales increased 3% at actual exchange rates.
Operating profit from continuing operations increased by 26%. Profit from continuing operations increased 40% to €2.1 billion (R37bn); while a €2.9bn loss from discontinued operations primarily resulted from €2.7bn non-cash write-down of the loss-making online retailer YOOX Net-a-Porter (YNAP) net assets, which is being “held for sale”.
Rupert said YNAP would adopt Farfetch Platform Solutions to accelerate a shift towards a hybrid model that would significantly enhance its prospects.
The group cash position remained robust at €4.8bn.
Rupert said in terms of business areas, all grew profitably, with the highest growth in sales at 27% recorded by the ‘Other’ segment, mostly composed of Fashion & Accessories maisons, and the highest profitability at 37.1% generated by the Jewellery Maisons.
With a 24% sales growth overall and higher sales in all regions and distribution channels, the Jewellery Maisons, Buccellati, Cartier and Van Cleef & Arpels, was being further supported by the expansion of their manufacturing sites, while operations teams were being reinforced.
The Specialist Watchmakers expanded sales 22%, with all Maisons, regions and distribution channels recording growth, after benefiting from an overall growing interest for high-quality watches across generations.
“Of note is the continued shift in demand towards directly-operated stores, both physical and online, and mono-brand franchise stores. Sales in these branded environments accounted for over 70% of the Specialist Watchmakers’ sales,” said Rupert.
The Group’s ‘Other’ business area, which now includes Watchfinder, saw nearly all Maisons post sharp sales growth across channels and regions, with Chloé, Montblanc and Peter Millar, including G/FORE, contributing most to the sales increase.
BUSINESS REPORT