What’s in store for Richemont?
The group is tightlipped about its foray into online retail — but recent events hint at how seriously it’s taking the matter
The thrust into online sales platforms by luxury goods conglomerate Richemont — owner of iconic brands such as Cartier, Piaget, Van Cleef & Arpels, Montblanc and Vacheron Constantin — is being keenly watched by the market. The shift into online sales not only recognises a fast-changing trading environment, but is also seen as a potential margin enhancer for Richemont in its ongoing efforts to build up its retail network. But details on this key initiative have not exactly been forthcoming. Richemont’s investment presentation made only two specific comments on online sales boosts at handbag specialist Chloé and Alfred Dunhill. Richemont did report a 190-basis point improvement in gross margins to 65.4%. But the fatter margin was largely attributed to the nonrecurrence of the previous financial year’s inventory buybacks and improved manufacturing capacity absorption.Though there’s not an excess of information on the online initiative available, there is a sense of how important this t...
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