LONDON — Richemont chairman Johann Rupert said despite “volatile” times, he was confident about the prospects of the luxury giant, which saw sales surge 24 percent to 9.68 billion euros at actual exchange rates in the first half.
Profit from continuing operations at the parent of brands including Cartier, IWC and Chloé was up 40 percent to 2.11 billion euros.
The figures for revenue and earnings before interest and taxes outstripped market expectations, sending the share price soaring 9.2 percent to 116.90 Swiss francs in early-afternoon trading.
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In its report, Royal Bank of Canada pointed to the “high-quality and broad-based growth across the Richemont portfolio,” while Luca Solca of Bernstein said the numbers show that “luxury goods demand remained buoyant over the summer.”
In the first six months, Compagnie Financière Richemont reported a loss of 766 million euros following the noncash write-down of assets linked to the proposed sale of a majority stake in Yoox Net-a-porter Group to Farfetch and Alabbar. The deal was announced last August.
In the six-month period ended Sept. 30, Richemont’s jewelry sales rose 24 percent at actual rates, with watches growing 22 percent and sales at the fashion and accessories houses rising 27 percent.
The company said it saw double-digit gains, at actual exchange rates, across all business areas, channels and regions excluding Asia-Pacific, where sales grew by 3 percent.
Rupert said he was confident about the future, despite the challenging macro environment.
“It is highly uncertain how the political, economic and social landscapes will evolve in Europe and in our other key markets. We only know that we will likely face volatile times ahead as central banks seek to rein in inflation while governments try to manage severe cost of living pressures,” Rupert said.
He said his group is in “good health, with a clear strategy, highly desirable and enduring creations, strong maisons, professional teams and a robust balance sheet. These assets will enable Richemont to weather uncertain times and draw upon strength in demand, allowing us to look to the future with a mix of vigilance and confidence.”