Richemont Buoyant about Outstanding Sales

Highlights

Compared to the first quarter ended 30 June 2020:

• Strong start to the financial year with Group sales up by 129% at constant exchange rates and 121% at actual exchange rates

• Outstanding performance of the Jewellery Maisons and the Specialist Watchmakers, with sales growth of 142% and 143%, respectively, at constant exchanges rates, and 132% and 136%, respectively, at actual exchange rates

• Strong sequential improvement compared to the quarter ended 31 March 2021

Versus the prior year period, which was severely affected by the pandemic, all regions, channels and business areas saw sales progress at triple digit rates, with the exception of Asia Pacific, Online Distributors and online retail where sales grew by double digits.

The 129% increase in sales was led by the Jewellery Maisons and Specialist Watchmakers with growth of 142% and 143%, respectively. The Other business area, mostly composed of our Fashion & Accessories Maisons, also performed strongly, recording 124% sales growth.

The Americas generated the strongest regional performance, with sales increasing by 276% driven by strong local demand, followed by the Middle East and Africa with sales up by 154%. Wholesale and retail led channel growth, with sales progression of 178% and 138%, respectively.

Given the magnitude of the impact of the pandemic on our operations in the three-month period ended 30 June 2020, additional comments compared to the three-month period ended 30 June 2019 are provided below for a more comprehensive view of our current trading.

Review of trading in the three-month period ended 30 June 2021 versus the three-month period ended 30 June 2019, at constant exchange rates

In the period under review, sales exceeded pre-Covid levels. Sales growth of 22% was driven by strong double-digit increases in the Americas, Asia Pacific and the Middle East and Africa. Sales in Europe contracted by 15%, as robust demand from local clientele could not offset the halt in tourist sales. In Asia Pacific, sales increased by 40%, with good momentum across most markets, particularly in mainland China, Macau SAR (China) and South Korea. In the Americas, sales rose by 47%, supported by buoyant domestic demand and thriving retail sales. Sales in Japan declined by 14%, due to renewed public health protection measures and a halt in tourism. The Middle East and Africa posted the strongest regional performance with 55% sales growth, reflecting solid domestic and tourist spending, notably in Dubai and Saudi Arabia.

The online and offline retail channels recorded strong double-digit sales growth. Retail sales, up by 35%, delivered the strongest relative channel performance, supported by double-digit growth at the Jewellery Maisons and Specialist Watchmakers. Retail sales were particularly strong in the US, Russia and Saudi Arabia. Online retail sales rose by 29%, with sustained demand across regions. Sales in the wholesale channel were 3% lower, notwithstanding notably higher sales in the US and Russia.

Sales growth of 43% at the Jewellery Maisons was driven by both strong jewellery and watch sales at Cartier and Van Cleef & Arpels. Sales progressed in most regions and across all channels. The Specialist Watchmakers’ sales increased by 6%, driven by online and offline retail sales and growth in most regions. At the Online Distributors, sales grew by 8%, and Gross Merchandise Value (GMV) increased by 9%. The Group’s Other business area recorded a 7% decline in sales, partly reflecting persistent challenges in the wholesale channel, particularly in travel retail.

The Group’s net cash position at 30 June 2021 was € 3.6 billion (2020: € 1.8 billion), reflecting strong trading.

Sales growth of 43% at the Jewellery Maisons was driven by both strong jewellery and watch sales at Cartier and Van Cleef & Arpels. Sales progressed in most regions and across all channels. The Specialist Watchmakers’ sales increased by 6%, driven by online and offline retail sales and growth in most regions. At the Online Distributors, sales grew by 8%, and Gross Merchandise Value (GMV) increased by 9%. The Group’s Other business area recorded a 7% decline in sales, partly reflecting persistent challenges in the wholesale channel, particularly in travel retail.