Only Alaïa grows at a double-digit rate. While the “fashion and accessories category broke even thanks to strict cost control.” Overall, Richemont’s quarterly results are mixed, but appear, however, better than expected. In fact, after releasing the data, its shares gained value on the stock market. Chairman Johann Rupert expects much from Gianvito Rossi, and the group’s new CEO, Nicolas Bos.
Better than expected
The stock of Swiss Richemont group opened positively in the session on the Zurich Stock Exchange, after announcing a better-than-expected quarterly performance. The fiscal year ended with record sales (20.6 billion euros, up 3% from the previous fiscal year) and net profit up from 301 million to 2.36 billion. Considering only the fourth quarter (January-March 2024), sales decreased 1%. A percentage that proved to be better than analysts’ expectations. Those at Citi, however, called the results “mixed.”
Mixed results
Results that were weighed down by a 43 million euro operating loss in the Other business area, which also includes the fashion and accessories business. The latter, according to Richemont, “broke even” thanks in part to “increased sales in most of the brands, including double-digit growth for Alaïa. We aim to realize the full potential of Gianvito Rossi over time“, Rupert stressed. Words that echo what Richemont was able to do with Buccellati. Since being bought by the group in 2019, it has increased sales four and a half times.
The YNAP bump
Richemont’s overall results were mainly weighed down by the €1.5 billion loss caused largely by the write-down of YNAP, whose future still appears uncertain. “Negotiations with potential buyers are ongoing”, Rupert admitted. But this did not satisfy analysts. At the same time the results were released, the Swiss group announced the promotion of Nicolas Bos from CEO of Van Cleef & Arpels to group CEO.
Read also:
- The earthquake at LVMH Fashion Group is bad news for everyone
- It seems Ferrari’s intrusion into fashion is not going very well
