Swiss luxury goods group Richemont, whose jewelry brands include Cartier, Piaget and Van Cleef & Arpels, saw a decrease in operating profits of some 23% for the fiscal year ended March 31, according to IDEX Online. Richemont’s sales increased 6% to US$12.41 billion, compared to US$11.67 billion a year earlier, notes IDEX Online.
Europe accounted for 31% of overall sales, but results were sharply divided between the first and second half of the year. First half-year sales grew 26%, while sales in the second half of the year grew by just 5%. This division is attributed to both the exchange rate as well as a change in tourism flows.
The Middle East and Africa showed continued strong growth through the year, while sales in the Asia Pacific region accounted for 36% of the group total. Hong Kong and Macau saw significantly lower sales throughout the year, most notably affecting the watch category and the wholesale channel, continues IDEX Online. A 13% decrease in the region on a constant exchange rate was partly offset by growth in mainland China.
“In the near term, we are doubtful that any meaningful improvement in the trading environment is to be expected,” notes Richemont chairman Johann Rupert.
