Richemont announcing its unaudited consolidated results for the six month period ended  September 30, 2017, reported overall growth in all segments, regions and distribution channels. However, the Company underlined the double digit increase in the sales of its jewellery and watches segment, which has performed exceptionally well.

 “Sales increased by 10% at actual exchange rates to € 5,605 million and by 12% at constant exchange rates,” the Company reported. “Excluding the prior year period’s inventory buy-backs, sales increased by 8% at constant exchange rates.”

Richemont attributed this  performance to  growth in all major product categories, particularly jewellery. “All regions posted higher sales, led by a strong performance in Asia Pacific, benefiting from double digit progression in mainland China and Hong Kong, amongst others,” the Company elaborated. “Both retail and wholesale channels delivered higher sales, with the latter primarily reflecting the non-recurrence of the above mentioned buy-backs.”

 Richemont’s operating profit increased by 46% to € 1,166 million, with profit for the period up 80% to € 974 million; and cash  flow from operations increased by 66% to € 1,108 million. Earnings per share  increased by 80% to € 1.721 on a diluted basis.

“The positive sales and profit performance achieved by Richemont in the first half of this financial year highlights the generally improved macro environment,” commented Richemont Chairman Johann Rupert. “The Group also benefited from easier comparative figures and favourable movements in period-end exchange rates.”

He added: “Jewellery and the retail channel posted the strongest performances. Most markets were in positive territory, led by mainland China, Korea, the United Kingdom and notably a return to growth in Hong Kong.”

Interestingly, highlighting the emergence and growth  of new luxury segments he said: “In the period under review, Richemont disclosed that it had taken a stake in Dufry, a leading travel retail specialist listed on the Swiss stock exchange, reflecting our view that travel retail spending will increase over time.”

Europe accounted for 29% of overall sales and at constant exchange rates, and on a y-o-y basis, sales  in the region grew by 3%, partly impacted by the increasing strength of the Euro.

“Performance within the region was characterised by double digit growth in the United Kingdom, moderate growth in most major markets and stable sales in France,” the Company summarised.

The  Asia Pacific region accounted for 39% of Group sales, with mainland China being the largest market in the region. “Sales increased by 25% with double digit growth in most markets led by mainland China, Hong Kong, Korea and Macau,” Richemont reported. “Jewellery and watch sales were particularly strong year-on-year, with the latter benefiting from the non-recurrence of the inventory buy-backs of the prior year period.”

While in the  Americas sales grew by 10%, the increase was more on account of jewellery and to a lesser degree on account of clothing. “Of particular note is the performance of Cartier, Van Cleef & Arpels, Piaget and Peter Millar,” Richemont stressed. “The reopening of the Cartier flagship store in New York in September 2016 and the opening of the Van Cleef & Arpels Design District store in Miami in March 2017 had a positive impact.”

Japan enjoyed a 7% growth in sales, which  was “driven by higher domestic and tourist spending, which benefited from a weaker yen as well as easy year-on-year comparative figures”. Here again, jewellery and watches led sales growth, partly supported by the reopening of the Cartier flagship store (September 2016) and new Piaget (November 2016) and Van Cleef & Arpels (April 2017) flagship stores, all in Ginza.

Middle East and Africa  witnessed   strong sales  in watches and writing instruments, which  was “partly offset by weak sales in the other product categories”. Overall, sales increased by 3%, “affected by geopolitical uncertainties in the region, the Company said.

 The retail distribution channel saw a strong   growth of 13%, driven by watches and jewellery. “All regions showed higher retail sales, with Asia Pacific, Japan and the Americas posting double digit growth rates,” Richemont stated. “The Maisons’ 1,115 directly operated boutiques and online stores contributed 59% of Group sales.”

 The Group’s wholesale business, including sales to franchise partners, increased by 11%, with all major product categories showing growth.

Meanwhile, on the same day as it reported its results, Richemont also  announced some  changes to its Senior Executive Committee.

Chief Operating Officer   Jérôme Lambert has been appointed to the newly created role of Chief Operating Officer. He  will be responsible for all Maisons other than Cartier and Van Cleef & Arpels.  In addition, he will continue to be responsible for the Richemont regional support platforms and central support services, excluding Finance, Human Resources and Technology, the Company elaborated.

To assist  Lambert,  Emmanuel Perrin, currently International Sales Director of Cartier, will be appointed Head of Specialist Watchmakers Distribution. “In this newly created position, he will be responsible for the coordination of all Specialist Watchmakers’ distribution strategies,” the Company announced.  Perrin will join the Senior Executive Committee effective immediately.

Commenting on the changes,  Johann Rupert, Chairman, said: “The changes announced today will continue our transformation of the Specialist Watchmakers’ business models to meet the demands of today’s environment. Mr Perrin, in his twenty-five years with the Group, has been successful with Van Cleef & Arpels and, most recently, Cartier, in developing partnerships with our wholesale partners. A prime area of focus will be matching supply with end customer demand.”