Swiss luxury group Richemont has published excellent figures, and tries to deny rumours of a possible takeover.
The holding company, which includes luxury brands such as Cartier and Belgian Delvaux, did particularly good business in Asia last year. With the removal of Covid travel restrictions in China, there was a “significant” increase in sales in the fourth quarter.
Richemont also saw sales growth of 30 per cent in Europe. France, Italy and Switzerland performed remarkably well. Sales in the Americas grew by 27 per cent. The Middle East and Africa achieve 24 per cent growth. Total sales for FY2023 are up 19 per cent on the previous year, to €19.95 billion. Operating profit is 34 per cent higher, setting a record.
“Not for sale”
Not only Richemont, but other players in luxury land like LVMH and Hermès are also benefiting from the boom in Asia. There were whispers last year that LVMH would take over Richemont, but Richemont founder and chairman Johann Rupert reiterates that his company is not for sale. “We do consult constantly and respect each other’s independence,” he said of LVMH.
Apart from all the good news, the group’s overall profit does fall 86 per cent. According to Richemont, the drop in profits is related to the €3.6 billion loss from discontinued operations.