Asia Pacific saw a 4 percent sales increase at real exchange rates, which included 7 percent growth in mainland China, Hong Kong and Macau combined. The Americas achieved sales growth of 1 percent, with further momentum in the second half of the year, outperforming Europe in absolute terms. European sales rose 2 percent. Japan posted the strongest regional performance with sales up 8 percent, driven by tourism demand, particularly from China. Sales in the Middle East and Africa increased 7 percent, the company said in a press release.
Richemont reported a 3 percent increase in group sales in FY24 to €20.6 billion, with an increase of 8 percent at constant exchange rates. Sales in Asia Pacific grew 4 percent, the Americas 1 percent and Europe 2 percent. Japan led with an 8 percent increase. Operating profit was €4.8 billion, while total profit was €2.3 billion. Earnings per share reached 4,077 euros.
Stores operated directly by Richemont recorded the highest channel growth, with sales up 5 percent at real exchange rates compared to the previous year. However, online retail sales, excluding those made by YNAP, declined 6 percent. Wholesale sales remained stable and represented 25 percent of the group's sales.
The other businesses area recorded a loss of 43 million euros, although the fashion and accessories houses reached break-even. At group level, operating profit was 4.8 billion euros. At constant exchange rates, operating profit rose 13 percent to 26.2 percent of sales.
Profit from continuing operations, which included unallocated net extraordinary expenses of €58 million, was strong, reaching €3.8 billion. However, overall profit for the year was €2.3 billion, after accounting for a €1.5 billion loss from discontinued operations, mainly due to a €1.3 billion amortization.
Gross profit increased by 2 percent to €14,036 million, resulting in a gross margin of 68.1 percent of sales. Adverse currency movements significantly affected profitability, leading to a 5 percent reduction in operating profit from continuing operations to €4,794 million, and an operating margin contraction of 190 basis points to 23.3 percent. sales. At constant exchange rates, operating profit grew 13 percent to 26.2 percent of sales.
Operating expenses increased 6 percent from a year ago, outpacing the 3 percent increase in sales. Profit from continuing operations stood at 3,818 million euros, a decrease of 93 million euros compared to the last year. Earnings per share reached 4,077 diluted euros.
Fiber2Fashion News Desk (DP)
