Emerging markets deliver Richemont record sales

Richemont reported record sales for the year 2011-12 Keystone

Swiss luxury goods group Richemont reported sales increased 29 per cent to €8.87 billion (SFr10.65billion) for the year 2011-12 ended March 31. Net profit rose 43 per cent to €1.54 billion.

In a statement on Wednesday, the company said the group had achieved strong sales growth in all segments and regions, despite volatile economic conditions.

The group, which has a stable of watch and designer jewellery companies that include Cartier, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC and Panerai, employs some 7,000 people at 20 sites in Switzerland.

In the past year it embarked on an aggressive expansion plan, employing 800 additional staff in Switzerland, and opening 90 new boutiques around the world. It plans to open 70 more in the coming year in emerging markets such as Vietnam, Indonesia, Brazil, China and the Middle East.

“Our jewellery and watch companies reported record turnover and profits, despite the appreciation of the Swiss franc, rising prices for precious raw materials and production costs,” chief executive officer Johann Rupert said.

Rupert said the group expected continued growth in the Chinese luxury market, and said Richemont had only marginally been affected by the downturn in Europe because of the large numbers of Chinese who purchased luxury products in European boutiques.