Switzerland's Richemont posts 19% surge in sales in Q1 FY24

The firm's sales growth was driven by double-digit increases in almost all regions in Q1 FY24, including a substantial 40 per cent year-on-year (YoY) rebound in the Asia Pacific. This performance was buoyed by favourable comparatives to the prior year, the easing of COVID-19-related restrictions, and the reopening of borders in mainland China, Hong Kong, and Macau in January 2023. Other Asian markets, notably Australia and Taiwan, also saw robust sales, Richemont said in a press release.

The company’s European business reported an 11 per cent YoY sales rise in Q1 FY24, underpinned by resilient domestic demand, especially from American, Middle Eastern, and Chinese clients. In contrast, the Americas experienced a 2 per cent YoY contraction in sales, primarily due to lower wholesale sales, whereas Japan posted a solid 14 per cent YoY sales growth. Sales in the Middle East and Africa advanced by 15 per cent YoY, reflecting both higher domestic and tourist spending in Dubai.

In terms of channels, retail sales recorded the strongest relative performance with a 24 per cent YoY increase, driven by gains in all regions and double-digit increases across all business areas. The 'retailisation' of Richemont's maisons has propelled retail sales to constitute 68 per cent of group sales. Online retail sales also rose, but by a modest 2 per cent YoY, and direct-to-client sales increased their share to 74 per cent of group sales, up from the previous year.

Richemont's other business area, mainly comprising its fashion and accessories maisons, witnessed a 6 per cent YoY sales increase in Q1 FY24. Strong retail sales across all its maisons and almost all regions, including the Americas, contributed to an 8 per cent YoY increase in fashion and accessories maisons’ sales.

Fibre2Fashion News Desk (DP)