Going online boosts Richemont’s sales but not its profit
More than half of the group’s sales and 90% of its operating profit came from its jewellery maisons
Richemont’s interim profit more than doubled thanks to the luxury goods group booking a €1.4bn “equity-accounted investment” profit on turning Yoox Net-a-Porter (YNAP) into a wholly owned subsidiary. Interim revenue for the six months to end-September grew 21% to €6.8bn, Richemont said in its interim results released on Friday morning. The accounting profit on delisting YNAP from the Milan stock exchange sent the group’s net profit soaring to €2.25bn from €974m. Following its acquisitions of “e-tailers” YNAP and Watchfinder, Richemont now segments itself into traditional retail, which contributed 52% of total sales; online retail, which contributed 14%; and wholesale, which contributed 34%. “During the past six months, Richemont strengthened its portfolio with two strategic investments aimed at offering our discerning and globally dispersed clientele more options in how, when and where they engage with and purchase from our maisons,” chair Johann Rupert said in the results statement...
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