News 
On 6 November this year, Richemont published results for the first half-year of its 2015-2016 activities ending on 30 September.
Over this six month period, turnover amounted to 5.8 billion Euros, an increase of 15% at actual exchange rates (3% at constant exchange rates). The steep upturn in sales recorded by the group’s standalone boutiques made up for a more mixed performance by the distribution network, which lost ground particularly in the Asia Pacific region. Net profit rose by 22% to 1.1 billion Euros.
Announced last March, the merger of the Net-A-Porter group with the YOOX group was finalised on 5 October. This stock transaction will result in a non-recurring gain in the order of 620 million Euros in the second half-year accounts. On completion of this merger, Richemont holds a 50% stake (25% of voting rights) in the newly formed group.
October sales registered a decline of 1% at actual exchange rates and 6% at constant rates. Half-yearly trends in terms of the market, product and distribution mix were accentuated in October: growth in Europe and Japan, albeit less marked, compensated for persistent weakness in the Asia Pacific region and America. Jewellery continues to outperform watchmaking.
The situation looks equally demanding for the second half-year, particularly on account of difficulties with partner watch brands. Continuing their differentiated marketing strategies, the group’s companies are maintaining their investment programmes in order to continually improve their ability to adapt to a volatile environment. From a long-term perspective they remain optimistic, with demand holding up well in standalone boutiques.
November 19, 2015