Luxury: Burberry and Richemont are a hit during the holidays

Posted 19 January, 2022

The luxury segment will be particularly watched in the middle of the week, while Burberry and Richemont recorded very solid results during the always very important end-of-year holiday period. The British group saw its retail sales reach 723 million pounds in its third fiscal quarter, up 7% on a like-for-like basis, where analysts had expected an increase of 5.06%. Sales "at full price accelerated significantly in the third quarter", underlined the firm which will be directed from April by Jonathan Akeroyd, at the head of Gianni Versace for nearly six years. Revenue in mainland China rose 15% with a 37% jump in full-price, like-for-like sales.

Assuming no further changes in the external environment, management expects annual adjusted operating profit to increase by approximately 35% at constant currency. The adverse effect linked to currency fluctuations has also been revised downwards.

For its part, Richemont recorded the strongest holiday sales growth in at least a decade, as consumers flocked to Cartier jewelry and Chloe-branded fashion products. Turnover over the three months ended at the end of December thus jumped by 32% (excluding currency effects) to 5.66 billion euros, exceeding pre-pandemic levels. The consensus was for growth of 18% with revenues of 5 billion euros. The Swiss group joins Prada, which said on Tuesday that its sales had returned to levels above those before the coronavirus epidemic.

Jewelry was the best performing unit (+38% at constant exchange rates), but fashion, accessories, and leather goods (+37%) also progressed well, a sign that management's turnaround efforts have borne fruit for brands like Chloe and Montblanc. Online sales rose 19%, down from the 45% growth seen in-store. Geographically, the Americas led the momentum with sales up 55%, followed by Europe and the Middle East & Africa, where sales increased 42% and 30%, respectively. Japan and Asia-Pacific saw revenue growth of 22% and 18%, with China consolidating at a high level of +7%, Richemont said.

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19 January, 2022 10:01

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