12 Nov 2021
Richemont is pleased to announce that further progress has been made towards creating a neutral, industry-wide platform, built on the latest omnichannel retail technologies, to support the digitisation of the luxury industry.
In this context, Richemont is in advanced discussions with Farfetch with a view to enhancing the partnership it established last year. The scope of the current discussions includes:
(i) Farfetch investing directly in YOOX NET-A-PORTER as a minority shareholder, with other investors to be invited to participate alongside;
(ii) YOOX NET-A-PORTER leveraging Farfetch Platform Solutions to support its ongoing transition to a hybrid 1P/3P business model;
(iii) Richemont Maisons leveraging Farfetch technology to accelerate their Luxury New Retail developments; and
(iv) Richemont Maisons joining the Farfetch marketplace.
Other industry players and investors have already indicated their interest in investing in YOOX NET-A-PORTER alongside Richemont and Farfetch. The ultimate objective is for YOOX NET-A-PORTER to be a neutral platform, with no controlling shareholders.
Richemont continues to work with Farfetch towards definitive agreements and will provide an update in due course, if and when appropriate. There can be no certainty that the discussions will lead to definitive agreements, nor as to the timing or terms of any transaction. Any transaction would be subject to the receipt of clearances from relevant anti-trust authorities.
Strong performance for the six-month period ended 30 September 2021
RICHEMONT ANNOUNCES STRONG PERFORMANCE
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2021
Highlights
Richemont sales rose by strong double-digits across all business areas, channels and regions compared to the prior-year period. Sales also significantly exceeded pre-pandemic levels.
Compared to the six-month period ended 30 September 2020
• Strong double-digit increases across Maisons, businesses and channels led to half year sales up by 63% at actual
exchange rates to € 8 907 million, and by 65% at constant exchange rates
• Triple-digit growth in the Americas, reaching sales levels close to Europe; substantial double-digit growth in the
other regions
• Significant improvements across all business areas, led by the Jewellery Maisons and Specialist Watchmakers
• Group operating profit of € 1 949 million, leading to a 22% operating margin
• Profit for the period rose to € 1 249 million
• Cash flow from operating activities nearly doubled to € 1 781 million
Compared to the six-month period ended 30 September 2019
• Sequential growth acceleration from first quarter to second quarter led to half year sales increases of 20% at actual exchange rates and 24% at constant exchange rates
• Pre-pandemic sales levels exceeded in most business areas, channels and regions at actual and constant rates
• Outstanding sales performance of Jewellery Maisons (+36% and +41% sales growth at actual and constant exchange rates, respectively); robust rebound of Specialist Watchmakers (+7% and +10%); consolidation of Other (-1% and +3%) and steady growth of Online Distributors (+8% and +11%)
• Solid double-digit sales increases in the Americas, Asia Pacific and Middle East and Africa, with Europe and Japan seeing a gradual recovery
• Robust double-digit sales growth in online and offline retail sales (74% of Group sales)
Chairman’s commentary
Richemont has delivered an excellent set of results in the first six months of the financial year; a period marked by a volatile but improving “post-vaccination” environment. These results demonstrate the strength of our business model and the benefits of patient long term capital. Sales were 20% higher than the pre-pandemic levels of the six-month period ended 30 September 2019. On a year-on-year basis, sales increased by 65% at constant exchange rates and by 63% at actual exchange rates to € 8.91 billion leading to an operating profit
of € 1.95 billion.
Region-wise, the Americas, Asia Pacific and Middle East and Africa generated robust double-digit sales increases over the six-month period ended 30 September 2019. This notable performance more than offset the softness seen in Europe and Japan where encouraging domestic demand helped mitigate the impact of low levels of inbound tourism.
Strong engagement with local clientele through digital tools and our physical and online stores has driven a significant double-digit growth in direct sales to customers, alongside improved wholesale sales. The Group’s continued focus on customer centricity and digital has resulted in even higher levels of customer experience in our stores. This focus also led us to extend our online offer to new markets, and within existing markets to additional Maisons. As a testimony to the success of this strategy, direct sales to customers reached 74%
of Group sales. The enhanced retail share in Group sales allowed us to further deepen and nurture our relationships with clients.
Our Jewellery Maisons have emerged ever stronger from the global economic crisis caused by the Covid-19 pandemic, achieving record half-year sales and operating margin of 37.9%. Cartier and Van Cleef & Arpels have reaffirmed their leadership position as jewellers of choice while Buccellati’s distinctive savoir faire and aesthetics are getting international recognition. In addition, Cartier was entrusted by Richemont to launch the ‘Watch and Jewellery 2030 Initiative’ with Kering and the Responsible Jewellery Council to begin a collective journey to ensure the industry creates positive outcomes for the planet and its people, as well as the ‘Aura Blockchain
Consortium’ with LVMH and Prada Group. The consortium aims to address the challenges of transparency and
sustainability, thereby enabling customers to follow a product’s lifecycle, from conception through distribution, with trusted data throughout
