The group Richemont, Swiss giant of luxury owner among others of the Cartier house, IWC, Montblanc, Van Cleef & Arpels, Buccellati and – from October – also Vhernier, has closed the 2024/2025 financial year with a growing turnover by 4%, reaching 21,4 billion euros. A result achieved despite the contraction in sales in the Asia-Pacific region, in particular in China, where signs of a slowdown in the luxury market were evident. The Asian decline was more than offset by good performances in other areas: the Americas recorded a +16%, Japan +25%, Europe +10% and the Middle East and Africa region +15%, all data at actual exchange rates.
In the fourth quarter alone, Richemont recorded an acceleration, with growing revenues by 8% (+7% at constant exchange rates), driven once again by jewellery houses, the only ones to guarantee double-digit expansion.
Net result above expectations, Ynap sale closed
THEannual net profit rose 16,8% to 2,75 billion euros, beating analysts' forecasts of around 2,2 billion. Theoverall profit for the financial year was equal to 2,8 billion, up 17%, despite a loss of one billion euros linked to discontinued operations, in particular the write-down of the assets of YOOX Net-A-Porter (Ynap) following the sale to Mytheresa.
La sale of YNAP, completed in April, has strengthened the group's financial position: Richemont closed the year with a cash flow of 555 million euros and no financial debt. In exchange, it obtained a 33% stake in Mytheresa capital, as well as providing a €100 million credit line to support YNAP's residual financial needs.
The board of directors will propose to the assembly a dividend of 3 francs per share, up from 2,75 francs last year.
The Jewel in the Crown: The Jewellery Maisons
The group's flagship division, that of Jewellery Maisons, has confirmed its central role in Richemont's strategy. The sector's annual turnover rose by 8% to 15,3 billion euros, with a particularly solid performance in the fourth quarter (+11%). The profitability has remained at high levels: the operating margin reached 31,9% in the year and 31,1% in the last quarter, despite the increase in the cost of raw materials.
According to Bernstein analysts, these results were better than expected and demonstrate the structural strength of Richemont's positioning in the high jewelry segment. However, the same experts have highlighted some critical issues, especially related to the Cartier brand, perceived as "under pressure" in China.
The clocks are slowing down
Not all of them business areas shone equally. The Watch division revenues (Specialist Watchmakers) fell 13% over the year, with an operating margin down to 5,3%. The weak performance of this segment – in a context in which Swiss export figures also remain tepid – weighed on overall operating profit, which stood at 4,5 billion euros, down 7% at actual exchange rates (-4% at constant exchange rates).
THE“Other” area recorded a growth of 7%, but with a negative operating margin (-3,7%), while the division Fashion and Accessories suffered from the accumulation of unsold inventory.
Richemont stock soars in Zurich
The markets rewarded the balance sheet results: the Richemont stock gains more than 7% on the Zurich Stock Exchange, rising to 165,90 Swiss francs.