Jewellery makes up 51% of Richemont annual sales

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Brands’ performance and several events aid 2012-13 performance.

Following last week’s financial results Richemont has released its financial report for the year ending March 31, outlining the developments among its jewellery brands.

In total, jewellery sales made up 51% of the groups’ sales in terms of business in the year to March 31. Richemont’s group sales increased 14% to €10.1 billion (£6.6bn) and operating profit up 30%, totalling €2.42 billion (£2.07bn).

The luxury group, which owns jewellery brands Cartier and Van Cleef & Arpels, reported solid growth across all segments, regions and channels.

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In terms of its jewellery offer, as reported last week, its sales to March 31 2013 totalled €5.21 billion (£4.44bn), up on 2012’s total of €4.59 billion (£3.92bn). Its jewellery houses’ operating profit €1.82 billion (£1.55bn), an increase on 2012’s figure of €1.51 billion (£1.29bn).

In terms of Richemont’s jewellery brand’s performance several events were marked out as boosting interest and performance. Cartier’s Biennale 2012 collection was described as a "resounding demonstration of Cartier’s ability to celebrate its creative".

The brand also released its Juste un Clou collection in April 2012, something it says was widely recognised and applauded, becoming instantly sought after and iconic.

Along with store expansions Cartier also launched two major communication initiatives last year, the first one being the film l’Odyssée de Cartier, and the second a fully remastered digital platform for the brand which it says has greatly enhanced the friendliness of the Cartier’s online services whilst dramatically boosting its evocative appeal. It has set in process a new standard of luxury digital experience.

For Van Cleef & Arpels the year ending March 31 featured a number of new collection launches including its Palais de la Chance range, one of a kind pieces and additions to its Perlée collection.

At present Van Cleef operates almost 100 boutiques, including openings in Paris, Brazil, the Middle East and China. Five fully renovated stores were also unveiled during the year to March 31.In June last year the new Van Cleef & Arpels website was launched, with an e-commerce section for the Japanese and US markets.

Richemont Group’s chairman Johann Rupert said: "We are pleased to report that Richemont has achieved solid sales growth across all segments, geographic regions and channels during the year.

"The jewellery maisons and the specialist watchmakers have reported remarkable growth in sales and profits, despite the continuing strength of the Swiss franc and historically high cost of precious metals and stones.

"These performances reflect the commitment and efforts of all our colleagues, the strength of our maisons and the efficiencies provided by the group’s shared service platforms. We continue to invest in [the maisons] production, marketing and distribution and the fruits of those investments are reflected in the results. In parallel, Richemont is also investing in the shared service platforms which support our maisons around the world, and in its specialist functions such as legal, IT and financial services."

Rupert said that the group is set to strengthen its customer service by boosting product availability and creating shorter delivery times.

During the year, a number of business acquisitions took place including the takeover of Varin-Etampage & Varinor, a Swiss manufacturer of precious metal products for the watch and jewellery industry, and Antica Ditta Marchisio SpA, an Italian company specialising in the production of hand-crafted jewellery.
 

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