Luxury group Richemont has reported an impressive performance in its full-year results, with a significant increase in group sales and operating profit. The company achieved sales of €19.181 billion and operating profit of €3.39 billion, marking a growth of 46% and 44% respectively at actual exchange rates. This growth was seen across all business areas, regions, and channels, with retail and the Americas leading the momentum. The operating profit figure represents a more-than-doubling of earnings and an improved operating margin of 17.7%.

Richemont’s success was evident in the Jewellery Maisons and Specialist Watchmakers segments, which experienced sales growth of 49% and 53% respectively. The Online Distributors segment, which includes Yoox Net-A-Porter, also saw a growth of 27%. The company’s ‘Other’ business area showed strong growth as well, with a sales rise of 53%. Despite the challenges posed by the suspension of commercial activities in Russia, Richemont’s net profit for the year rose by 61% to €2.079 billion.

It is important to note that Richemont’s strong performance cannot be solely attributed to comparisons with a pandemic-affected year. When compared to the same period in 2020, sales were up by 35% at actual exchange rates and 37% at constant exchange rates. This indicates broader growth in terms of business areas, particularly in retail and online retail.

Richemont attributes its success to improved economies until February, which helped to offset inflationary pressures and temporary store closures due to health protection measures. The Americas region saw a remarkable 79% increase in sales, while Asia Pacific recorded a 32% increase, with mainland China sales growing by 20%. Sales in Europe increased by an impressive 51%, primarily driven by a strong European client base. The Middle East and Africa also experienced significant sales growth, surpassing Japan as the company’s fourth largest market.

The company acknowledged the recovery in the wholesale sector and the strong performance of direct-to-client sales. It also highlighted the success of in-person high-jewelry events and the long-awaited Watches and Wonders event in Geneva. Richemont’s online business model, including platforms such as Net-A-Porter and Yoox, further progressed with a hybrid approach of inventory ownership and e-concessions/marketplace. Additionally, the company’s fashion and accessories brands, such as Alaïa, Chloé, Montblanc, and Delvaux, contributed significantly to the sales growth.

Despite the positive performance, one area of concern for investors is the delayed deal with luxury e-tail peer Farfetch to sell a stake in the loss-making YNAP. The negotiations have been protracted, leading to a decline in the company’s share price. However, Richemont’s chairman expressed confidence in the progress of the discussions and anticipated a conclusion in the near future. This setback aside, Richemont’s overall performance underscores its resilience and ability to adapt to changing market conditions.

(Sources: [Luxury group Richemont reports strong full year results](, [Richemont full-year results show strong recovery](