Richemont, owner of Cartier, Panerai and a host of other brands, just reported its six months results to September. The sterling figures offer few reasons for a watch collector or buyer to rejoice.
- Sales increased by 29 % to € 4 214 million, or by 36 % at constant exchange rates
- Sales in Asia-Pacific ex-Japan grew 48%, or 60% at constant exchange rates, driven by you-know-where which is now the third largest market after Hong Kong and USA
- Retail sales (mainly brand boutiques) are outpacing wholesale, growing at 37% while wholesale grew 23%
- Communications expense grew 29% as well, and stands at 8% of sales
- Gross margin is 63.2% while operating margin is 25.5%
- Net cash position is now EUR2.6 billion
And Johann Rupert, Chairman and CEO, sounded optimistic in his statement.
“Notwithstanding these challenges and based on the Group’s performance for the year to date, operating profit for the full year is expected to be significantly higher than last year.”
If you were wondering if watches are expensive, now you have an answer.
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